This legislation, known as the Data Center Water and Energy Transparency Act of 2026, requires data center operators to submit annual reports detailing their energy and water usage. Specifically, data centers with a peak demand of not less than 25 megawatts must report on their on-site energy and water consumption, including total monthly use, power and water usage effectiveness, and projected use for the next five years. These reports must also include proposals for reducing energy and water use and anticipated efficiency gains. The initial reporting is directed to the respective State where the data center operates. However, if a State does not have a program to collect this information, data center operators must submit their reports directly to the Administrator of the Environmental Protection Agency and the Secretaries of Energy and Agriculture . Similar reporting requirements apply to persons seeking to construct new data centers or expand existing ones, focusing on projected energy and water use. States that collect these reports are required to submit anonymized and aggregated data to the federal agencies. The Administrator and Secretaries will then jointly publish an annual public report summarizing aggregated national and regional energy and water use by data centers, their impacts on local communities and the environment, and recommendations for best practices. The bill also establishes enforcement mechanisms, allowing States to issue fines or enabling federal agencies to fine operators for negligent violations, and authorizes the collection of fees to support the program's implementation.