Data Center Community Impact Act

The Data Center Community Impact Act would require the Secretary of Energy to conduct a comprehensive study on how data centers affect communities of color and low-income communities. The study would examine multiple impacts including energy consumption, water usage, air quality from diesel generators, effects on soil and agriculture, wastewater systems, job creation, property values, and public health risks. The Secretary would coordinate with the Environmental Protection Agency, Department of Commerce, Federal Energy Regulatory Commission, and Council on Environmental Quality, and must consult with local governments and Indian Tribes. A report would be submitted to Congress within 18 months of enactment.

The bill responds to concerns about data center expansion, which currently accounts for approximately 4.4 percent of U.S. electricity use and is projected to grow significantly as artificial intelligence demand increases. Proponents cite examples like a large data center built near a predominantly Black neighborhood in Memphis, Tennessee that faced existing pollution burdens. The study would provide the federal government with information to better understand and potentially address environmental and public health impacts on vulnerable communities as the data center industry continues to grow.