The Chamber of Progress is urging congressional Democrats to introduce legislation in 2027 to require data center operators to cover electricity costs, disclose water consumption, and provide economic benefits to surrounding communities.
In a Nov. 4 memo, the technology policy group outlined its legislative priorities for the next Congress, including three proposed measures designed to address the growing energy and infrastructure demands associated with data center development.
Three proposed bills target electricity, public benefits, and water use
One central recommendation, the Pay Your Own Way Act, would require data center campuses consuming 100 megawatts or more to cover the full incremental cost of supplying them with electricity. The legislation would direct the Federal Energy Regulatory Commission to establish a model electricity tariff for large power users. It would also condition federal grid funding on states adopting equivalent tariff structures.
According to the Chamber of Progress, the proposal would make the Ratepayer Protection Pledge binding on data center operators, aiming to prevent residential customers from absorbing electricity costs associated with large-scale data center demand.
A second proposal, the Public Dollars, Public Benefits Act, would connect expedited federal permitting and access to federal land with requirements that data centers operate without public subsidies. The measure would also establish public registries of financial incentives and direct federal cost-sharing toward shared electric grid infrastructure intended to reduce costs for ratepayers.
The third proposal, the Closed Loop Act, would establish state-level water-use disclosure requirements for large industrial facilities and introduce performance-based water consumption standards. The measure would coordinate water and electricity reviews while providing funding for research and conservation incentives.
Beyond infrastructure and resource requirements, the Chamber of Progress is recommending local hiring commitments, apprenticeship opportunities, and workforce training programs to ensure surrounding communities receive economic benefits from data center construction and operations.
Local opposition adds pressure for greater oversight
The recommendations come amid growing opposition to data center development in communities nationwide.
Sen. Bernie Sanders, I-Vt., who caucuses with Democrats, has also called for restrictions on new facilities, citing local ballot measures voters approved in the Nov. 3 midterm elections.
Data center restrictions appeared on ballots in 40 jurisdictions across 10 states, with voters approving restrictions in virtually every contest, according to preliminary results. A few results remained pending, while Hardwood, N.D., was a notable exception, with voters rejecting restrictions on data center development.
NBC exit polling found that 76% of voters opposed construction of new data centers in their communities. The polling also found that 56% considered data centers a crucial or major factor in their choice of congressional candidates.
“National data center moratorium now,” Sanders wrote in a post on X. “Americans don’t want Big Tech oligarchs wrecking the environment, gutting jobs and threatening humanity’s future.”
Janine Yorio, CEO of Community Digital Technologies, attributed the growing opposition to data centers to the physical visibility of data centers and the disconnect between the communities hosting them and the people benefiting financially from their development.
Data centers, she said, have become the most visible representation of the artificial intelligence industry. However, a moratorium, as Sanders has suggested, would not solve the overarching issue, she explained.
“People are going to expect to be brought along with the AI economy and not left behind by it,” she said.
Practical legislation to address data center concerns could provide that “people that live in data center communities actually own a piece of the data centers themselves. If data centers don’t create jobs, they should still help make local people more prosperous.”
“I do not fundamentally believe that AI will slow down or that data centers will never get built. But the economic framework under which all these things move forward, I believe, is going to change significantly,” she said.
Incoming Democrats outline data center proposals
Data center oversight is also emerging as a priority among incoming Democrats, several of whom have called for greater accountability for the industry’s effects on local communities and energy infrastructure.
Sen.-elect James Talarico, D-Texas, has proposed making data center operators responsible for the costs associated with their facilities. His plan includes ending tax incentives for large technology companies, requiring major energy users to finance infrastructure improvements, and establishing federal standards for new data center projects.
Talarico has also expressed support for closed-loop cooling systems to reduce water consumption and giving local communities greater authority over data center development decisions.
Sen.-elect Adam Hamilton, D-Kan., has similarly called for federal requirements that ensure data centers pay their own electricity costs rather than shifting expenses to residential ratepayers.
Hamilton has also said that companies should earn the support of the communities where they establish operations.