Data Center Tax Accountability and Disclosure Act of 2026
Sponsored By: Senator Warner, Mark R. [D-VA]
Introduced
Summary
Tax and disclosure rules for AI data centers drive two goals: expand depreciation benefits for qualifying AI data center equipment and create mandatory, public reporting on energy, water, and backup-power use for large centers.
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- AI data center operators and AI companies would be able to treat qualifying data center property as eligible for bonus depreciation when placed in service after enactment. An "AI data center" must be dedicated to IT, include at least one graphics processing unit, and use at least 20% of capacity for developing or operating artificial intelligence; centers with LEED Gold or Platinum certification would be excluded.
- States, utilities, and local planners would face new disclosure rules for covered centers defined as 25 megawatts or more. Operators must file initial disclosures 180 days before startup or within 180 days for existing centers and submit an annual report by Dec 31 with monthly electricity, water withdrawals and use, backup-power details, and emissions data.
- The bill would make disclosures public through the Department of Energy and Environmental Protection Agency websites and let states compile submissions for publication. It also creates civil penalties up to $50,000 per day for negligent violations and $100,000 per day for knowing violations while preserving national-security exemptions for federal or dual-use centers.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 0 benefits, 0 costs, 2 mixed.
Tax break for AI data centers
If enacted, property used in an "AI data center" would be eligible for bonus (accelerated) depreciation. An AI data center would need at least one GPU and at least 20% of its use for developing or operating artificial intelligence. Buildings with LEED Gold or Platinum certification would be excluded from the bonus depreciation, though DOE and EPA could set an equivalent standard. If the AI data center is leased, depreciation would follow the specified Treasury leased-property rules. These tax rules would apply only to property placed in service after enactment.
New reports for large data centers
If enacted, covered data centers with 25 megawatts or more power demand would have to file initial disclosures and yearly reports. New centers must file an initial disclosure at least 180 days before starting operations. Existing covered centers must file an initial disclosure within 180 days after enactment and then annual reports by December 31 covering the prior year. Reports must include monthly water and electricity use, PUE and WUE metrics, greenhouse gas emissions, backup-power capacity and fuel, long-term power and water agreements, and state setback/permit info. States can opt in to collect reports and must send one annual compilation to DOE and EPA. DOE and EPA must issue rules and publish reports; OMB must set standards for federal centers within 180 days. NDAs could not block required disclosures. Operators who fail to comply could face fines up to $50,000 per day for negligent violations and up to $100,000 per day for knowing or false submissions.
Sponsors & CoSponsors
Sponsor
Warner, Mark R. [D-VA]
VA • D
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov