Data Center Community Impact Act

This legislation, known as the Data Center Community Impact Act, requires the Secretary of Energy to conduct a detailed study on the effects of data centers on communities of color and low-income communities . This study will be performed in coordination with the Environmental Protection Agency, the Department of Commerce, the Federal Energy Regulatory Commission, and the Council on Environmental Quality. The bill highlights that data centers are a significant and growing source of energy and water consumption, and that vulnerable communities often bear a disproportionate burden from environmental hazards. The study must include information on data centers' water and energy consumption, their impact on local water supplies, the electric grid, and air quality, including emissions from backup generators. It will also examine effects on soil, land-use practices, public health risks, and economic factors such as job creation or displacement, tax revenue, and property values. The Secretary of Energy is required to consult with local government entities and Indian Tribes during the study. Within 18 months of enactment, a report must be submitted to Congress, containing an assessment of the findings, a map identifying data center locations relative to the affected communities, and recommendations for federal coordination and best practices for state and local governments to mitigate potential harms.