AI Data Centers: Tax Changes and Environmental Reporting
A bill to exempt AI data centers from bonus depreciation and require data center operators to submit certain information relating to electricity and water use by data centers, and for other purposes.
A senate committee must act next: committee consideration.
While there is growing concern about the energy use of AI, removing established tax breaks for a major growth industry usually faces heavy opposition from tech and business groups.
Scores run from -100 (strongly harmful) to +100 (strongly beneficial) for each group, combining impact, certainty, scope, and duration ratings of 1-5. How impact scoring works
Data centers must report water withdrawal sources, volumes, and any long-term water rights or supply agreements, which matters in farming regions where data centers compete with agriculture for groundwater and surface water. The added transparency could help farmers and ranchers push back on water allocations, though the bill does not cap or redirect water use.
“Any water rights, permits, or long-term supply agreements held by a data center operator for a covered data center, including the term and quantity of water subject to those rights, that permit, or that agreement.”
Read twice and referred to the Committee on Finance.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
The Data Center Tax Accountability and Disclosure Act would require large AI data centers to publicly disclose key information about their energy and water consumption, emissions, and backup generation, while reforming tax treatment by conditioning bonus depreciation on green standards.
Senator Mark Warner's comprehensive AI legislative package includes the Data Center Tax Accountability and Disclosure Act, which targets the environmental footprint of AI infrastructure by requiring reporting on resource use and tying tax incentives to LEED certifications.
No votes or related bills recorded for this bill yet.
Document Type
Congressional Bill
Official Title
A bill to exempt AI data centers from bonus depreciation and require data center operators to submit certain information relating to electricity and water use by data centers, and for other purposes.
Analysis generated by AI. Always verify with official sources.