New Bill Targets Data Centers to Track AI's Footprint

As AI-driven data centers expand across the country, members of Congress are seeking greater transparency regarding the impact on local resources, while also weighing how to innovate state energy and power structures.

Last week, Representative Chip Roy (R-TX) introduced the Public Oversight of Water and Energy Reporting (POWER) Act, urging the Department of Energy (DOE) to collect and report data centers’ annual water and energy use to Congress.

"As data centers spring up across the country, we need to be mindful of our water and energy resources,” Rep. Roy said.

The POWER Act would require the DOE to annually report the water and energy use of large AI data centers, including whether facilities recycle water or rely on public water supplies.

Rep. Roy stressed the proximity of this issue to his constituents in Texas, a state that endures extreme drought conditions that require more mindfulness around water usage when building out “energy intensive” data centers.

“We must have a clear picture of how much water and energy these projects are consuming,” Rep. Roy said.

The legislation would also require reporting on how data centers are powered and, if it connects to the state’s power grid, how much those connections cost and who ultimately pays for them.

Rep. Julie Johnson (D-TX) also pointed out how much energy Texas actually needs, as it’s the only state with its own independent power grid that provides up to 90% of the state's electric load.

“We need all the power we can get,” Rep. Johnson told Texas Politics. “Having lived through winter storm Yuri, when our grid shut down, we had problems. I saw firsthand how fragile Texas being on its own grids energy system is.”

Rep. Johnson stressed the need to strengthen Texas' energy infrastructure as electricity demand continues to grow.

“While you want to create new business, you want to create new jobs, we want to be a state that does that,” she said. “You have to do it responsibly.”

According to Rep. Roy, his bill will aid in holding the DOE and data centers accountable through that expansion process.

“The Public Oversight of Water and Energy Reporting (POWER) Act ensures the Department of Energy collects an honest accounting of exactly how much water and energy these projects will use,” Rep. Roy said.