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This bill aims to protect American families from the costs data centers impose on the electric grid by ensuring data centers pay their full share of infrastructure costs and by studying their environmental and public health impacts.
Sec. 3, Ensuring data centers pay their fair share: The bill defines a data center as a facility or group of facilities behind a single interconnection point, primarily containing digital information equipment, with a peak electricity demand over 50 megawatts. It gives the Federal Energy Regulatory Commission sole authority to approve retail electricity rates for data centers sold by covered electric utilities (excluding certain cooperatives, state-owned utilities, TVA, and federal power marketing administrations). These rates must be just and reasonable and include the full costs of constructing, upgrading, and expanding transmission, distribution, and generating facilities to interconnect data centers and ensure grid reliability. Covered utilities are prohibited from shifting these costs onto other customers. The section also sets a civil penalty of up to $10 million per day for violations.
Sec. 4, Limitation on judicial enforceability of predispute nondisclosure contract clauses relating to the construction of data centers: Predispute nondisclosure clauses in contracts cannot be enforced against a public official (an elected federal, state, or local official at the time the contract was agreed to) regarding data center construction. This applies to claims filed after the bill's enactment and does not override stricter state laws.
Sec. 5, Assessment of environmental and public health effects of data centers: The EPA Administrator must seek an agreement with the National Academies to assess data center impacts on noise, air, water consumption, water supply, carbon emissions, and electronic waste, develop mitigation recommendations, and report to Congress within 180 days of enactment.
Sec. 6, Definitions: Defines key terms used in the bill, including 'data center' (same as in Sec. 3), 'National Academies' (National Academies of Sciences, Engineering, and Medicine), 'predispute nondisclosure clause' (a pre-lawsuit contract provision barring disclosure of conduct or settlement), and 'public official' (an elected federal, state, or local official at the time of contract agreement).
Summary of the bill text as introduced in House (Mar 20, 2026), generated by SecBot from the official bill text; the Library of Congress summary is not yet published.
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Official record from Congress.gov, the House Clerk and the Senate; lobbying from Lobbying Disclosure Act filings. Updated Oct 28, 2026.