In a move to safeguard local resources, Republican U.S. Representative Chip Roy of Texas has introduced the Public Oversight of Water and Energy Reporting (POWER) Act. This legislation mandates the Department of Energy (DOE) to monitor and report the water and energy usage of large-scale data centers that receive federal support or expedited permitting under a Trump-era executive order.
Local Impact and National Implications
The bill comes at a time when Texas, among other states, faces severe drought conditions. With the rapid increase in data center projects across the state, concerns have been raised about their substantial energy demands and uncertain water consumption. Rep. Roy emphasizes the need for transparency to ensure that the construction and operation of these data centers do not compromise the nation’s water resources or valuable agricultural land.
The POWER Act requires the DOE, in collaboration with the Environmental Protection Agency, to gather detailed data on water usage by data centers drawing from public water systems. It differentiates between facilities using closed-loop systems that recycle water and those using open-loop systems that continuously draw fresh water. For closed-loop systems, the DOE must report the total water provided during each period, while for open-loop systems, the average daily consumption must be calculated and reported.
Energy Consumption and Federal Oversight
On the energy front, the legislation mandates reporting on whether data centers generate their own electricity or rely on the grid. For those connected to the bulk-power system, the DOE must disclose the costs associated with grid connection and identify whether these costs are borne by the data center operators, ratepayers, or through federal subsidies.
Importantly, the reporting requirements exclude data centers owned or operated by federal agencies under the 2015 National Defense Authorization Act. This exclusion highlights the focus on private sector data centers that benefit from federal incentives.
Executive Order 14318, signed in July 2025, is one of three AI-related orders aimed at enhancing U.S. competitiveness by reducing regulatory hurdles and accelerating data center construction. The order facilitates streamlined environmental reviews and offers financial incentives for qualifying projects.
With the POWER Act, Rep. Roy seeks to provide Congress and the public with a clear understanding of the resource demands of these federally supported projects, ensuring that local communities are not adversely affected by their development.
Original reporting: Texas Scorecard — read the source article.
