H.R. 7858: Data Center Community Impact Act

This bill, known as the Data Center Community Impact Act, aims to address the effects of data centers on communities, particularly those of color and low-income areas. Here’s a breakdown of what the bill entails:

Purpose

The primary goal of the bill is to require the Secretary of Energy to conduct a comprehensive study on how data centers impact marginalized communities in terms of environmental and public health concerns.

Key Findings

• Data centers are significant consumers of electricity, accounting for approximately 4.4% of the United States' total energy use as of 2023, with expectations of growth.
• Water usage for cooling data centers and producing electricity is substantial and projected to increase.
• Communities of color and low-income communities often face higher environmental hazards and public health risks.
• Data centers may exacerbate existing environmental injustices in vulnerable communities.

Study Requirements

The study mandated by the bill will examine various aspects related to data centers, including:

• Water Consumption: The study will assess how much water data centers use and its effects on local water supplies.
• Energy Consumption: It will look into the energy used by data centers, especially how much comes from fossil fuels and the effects on the electric grid.
• Air Quality: The study will evaluate emissions from generators and how data centers affect air quality in surrounding areas.
• Land Use: The impact on soil and land practices, particularly regarding agriculture and local food resources, will be analyzed.
• Electric Grid Effects: The study will also examine how data centers might affect electricity rates and the stability of the grid.
• Job Impact: It will assess how data center operations might create or displace jobs.
• Tax Revenue: The effects on local tax revenue and whether local communities benefit from these facilities will be studied.
• Property Values: The study will consider the impact of data centers on property values in nearby residential areas.
• Public Health: It will evaluate how data centers contribute to health risks associated with pollution and stress on natural resources.

Consultation and Reporting

To conduct this study, the Secretary of Energy will collaborate with various federal agencies and relevant local governments, as well as Indian tribes. A report will be submitted to Congress within 18 months of the bill's enactment, containing:

• An assessment of the findings from the study.
• A map indicating where data centers are located concerning communities of color and low-income communities.
• Recommendations for federal coordination to mitigate any identified harms.
• Guidelines for best practices that states and local governments can adopt.

Definitions

The bill defines several key terms:

• Community of Color: Areas with higher populations of specific racial and ethnic groups compared to state averages.
• Data Center: Defined in the Energy Independence and Security Act of 2007.
• Indian Tribe: As defined under specific federal law.
• Local Government Entity: Any municipal or county government responsible for local land use decisions.
• Low-Income Community: Census block groups where 30% or more of the population has a low income based on specific thresholds.
• State: Includes the District of Columbia and U.S. territories.

Relevant Companies

None found