H.R. 10321: Responsible Data Center Siting Act of 2026 (119th Congress) Bill Summary

This bill would require the Department of Energy, working with the Federal Energy Regulatory Commission, the Department of Defense, and other agencies the Energy Secretary chooses, to create

best practices for where data centers should be built

.

What the best practices would cover

The guidance would have to consider several factors when deciding whether a location is a good fit for a data center, including:

Electric grid impacts: whether a data center would raise electricity prices for consumers, require new transmission lines or other grid upgrades, and how quickly it could connect to the grid using existing infrastructure.
Water use: how much water the data center would use and whether that could affect water availability for nearby residents or the surrounding area.
Environmental effects: impacts on water quality, air quality, nearby ecosystems, emissions, and any other environmental effects the Secretary considers relevant.
Local community effects: noise, light, and how the facility would affect the look and character of the community.
National security: whether certain locations create security concerns, including the effect of clustering multiple data centers in one area.
Workforce effects: effects on local jobs, both short-term construction jobs and longer-term employment.
Local economy and taxes: effects on local tax revenue, including the role of state tax incentives.

What the guidance must include

The Secretary would also have to identify:

site characteristics that would help reduce the negative impacts listed above; and
a list of locations that would be considered ideal for data centers based on those characteristics.

Timing and updates

The Department of Energy would have to publish the initial best practices on its public website within 1 year after the bill becomes law. After that, the Secretary would have to review and update the guidance within 2 years, and then at least every 2 years going forward.

Scope

The bill does not directly ban data centers, require permits, or set mandatory national siting rules. Instead, it creates federal guidance and recommended best practices for choosing data center locations.