Lawmakers Push for Mandatory Energy Reporting from Data Centers Amid Growing Power Concerns
Technology

Lawmakers Push for Mandatory Energy Reporting from Data Centers Amid Growing Power Concerns

U.S. senators are demanding federal oversight of data center energy consumption, warning that unchecked power use could drive up electricity costs for American households.

By Sophia Bennett5 min read

U.S. Senators Call for Transparency on Data Center Power Consumption

Two U.S. senators from opposite sides of the aisle are demanding greater accountability from the rapidly expanding data center industry, urging federal regulators to require comprehensive energy disclosures that could reshape how the nation manages its power grid.

In a joint letter delivered Thursday to the Energy Information Administration (EIA), Senators Josh Hawley and Elizabeth Warren pressed the agency to publicly collect detailed, annual energy-use reports from data centers across the country. According to the senators, this information is critical for accurate grid planning and could help prevent large technology companies from shifting their enormous electricity costs onto ordinary American consumers.

Why Data Center Energy Use Is So Hard to Track

Despite alarming projections about future power demand, reliable official figures on data center energy consumption remain surprisingly elusive. No federal agency currently gathers this data in a systematic way. Individual data centers are generally not required to disclose their electricity or water usage, and many companies only do so voluntarily. The situation is further complicated by a growing trend of data centers building their own off-grid power sources — a practice known as behind-the-meter generation — which makes comprehensive energy accounting even more difficult.

Utility companies do collect some regional data on power consumption from data centers and use it to project future demand. However, because data centers frequently negotiate with multiple utilities simultaneously, experts warn this leads to significant double-counting. Utilities end up forecasting demand for so-called "phantom" data centers — projects that may never actually be built in their service areas. The CEO of energy firm Vistra noted during an earnings call last year that utilities may be overstating electricity demand by anywhere from three to five times the actual need.

Federal Agencies Begin to Take Notice

The EIA has signaled that it intends to play a more active role in monitoring this sector. In December, EIA administrator Tristan Abbey publicly stated that the agency expects to become a key source of objective data and analysis for policymakers dealing with data center growth. This week, the agency announced a voluntary pilot program that will gather energy consumption data from nearly 200 companies operating data centers across Texas, Washington, and Virginia. The initiative will examine energy sources, electricity consumption, site characteristics, server performance metrics, and cooling infrastructure.

While Hawley and Warren acknowledged the pilot program as a positive step, their letter raised pointed questions about the agency's longer-term plans. They want to know whether future energy surveys will be mandatory rather than voluntary, and whether the EIA intends to capture data on behind-the-meter power generation. This information, they argue, will be vital to hold major technology companies accountable following a recent White House agreement in which executives pledged — through a nonbinding arrangement — that consumers would not bear the financial burden of data center power costs.

"Without this data, policymakers, utility companies, and local communities are operating in the dark," the senators wrote.

Legal Authority and Industry Precedent

Hawley and Warren contend that the EIA already has the legal authority to mandate energy disclosures from data centers under the same regulatory provisions it uses to collect data from other major industries, including oil and gas and manufacturing. Ari Peskoe, a director at Harvard Law School's Environmental and Energy Law Program, agrees that the existing legal language is broad enough to encompass data centers.

"If we're worried about ratepayers paying data-center energy costs, then knowing how much energy data centers are using is a necessary part of that calculation," Peskoe said. "It's not the only piece of information you need, but it certainly is a piece of the puzzle."

A Wave of Legislative Action

The senators' letter arrives at a moment of intense legislative scrutiny over data center development. Senator Bernie Sanders introduced a bill this week calling for a nationwide moratorium on new data center construction until federal artificial intelligence safety regulations are established. On the same day, Senator Dick Durbin put forward separate legislation that would compel data centers to publicly disclose their energy and water usage.

At the state level, the momentum is equally significant. Hundreds of data center-related bills have been introduced across the country, with at least a dozen states actively considering construction moratoriums. The growing public concern over electricity costs tied to data center expansion has already influenced electoral outcomes in states with heavy data center footprints, including Virginia and Georgia.

Earlier this year, Hawley co-sponsored a bipartisan bill with Senator Richard Blumenthal that would require data centers to generate their own power rather than drawing from shared public grids — a direct response to fears that everyday consumers will ultimately foot the bill for Big Tech's surging energy appetite.