Federal Legislation
Senator Durbin Introduces Data Center Energy Transparency Act
March 26, 2026
Senator Dick Durbin has introduced the Data Center Water and Energy Transparency Act, a federal legislative proposal requiring data centers to report their energy and water consumption to state authorities. This legislation aims to increase transparency around utility usage by data centers, which have been linked to rising energy and water costs impacting local communities and governments. The Act mandates data collection, aggregation, and regional analysis of resource consumption, with enforcement mechanisms for noncompliance, thereby enabling better oversight and resource management at the state and local levels.
- Procurement professionals should anticipate new reporting requirements for data center operations that may affect contract compliance and vendor selection.
- Energy and water utilities, as well as data center operators, may face increased scrutiny and potential operational adjustments to meet transparency mandates.
- This legislation signals growing government focus on sustainability and resource efficiency in IT infrastructure procurement.
- Contractors providing energy management, monitoring, and reporting solutions could find emerging opportunities supporting compliance with these transparency requirements.
If youβve noticed a sharp increase in your utility bills lately, it may be from the growth of energy-hungry data centers. Illinoisans deserve an honest analysis of the electricity and water needs of these data centers as they crop up around the country.
— Dick Durbin
Agencies
Environmental Protection Agency, Department of Energy, Department of Agriculture, States, Local governments