Virginia's Warner introduces data center energy disclosure bills

Washington, D.C., July 23, 2026

Sen. Mark Warner (D-Va.) introduced legislation Tuesday, July 21, 2026, that would require large AI data centers to publicly disclose their energy and water use and would tie a federal tax break to efficiency standards, according to ARLnow.

The Data Center Tax Accountability and Disclosure Act would require the facilities to share information about their energy and water consumption, emissions, backup power generation, and other operational effects, ARLnow reported. States would submit data center reports to the U.S. Department of Energy and the Environmental Protection Agency, which would publish them annually.

The bill would also condition bonus depreciation, a federal tax provision that lets companies write off equipment costs on an accelerated schedule, on data centers earning gold or platinum certification under the Leadership in Energy and Environmental Design program.

A companion measure, the National Workforce Transition Fund Act, would direct revenue generated by those depreciation limits toward worker retraining, individual training accounts, employer retention grants, tuition assistance for high-demand jobs, and related programs, according to ARLnow.

Supporters and industry response

Warner introduced the bills as part of a package titled "A Framework for America's AI Future," which he said grew out of years of work on AI's effects on the economy, national security, competition, and workers. Warner said American AI leadership "depends on getting this right." The package also includes bills on AI agent standards for online platforms, AI-generated exploitative imagery, and accelerated doctoral programs in technology fields, ARLnow reported.

The disclosure bill was endorsed by the Chesapeake Bay Foundation, the Sierra Club, and the Virginia League of Conservation Voters. The league's executive director, Michael Town, said data centers are raising energy costs and straining air and water resources, and called the bill a needed transparency measure, according to ARLnow. Josh Levi, president and CEO of the Data Center Coalition, told ARLnow the industry group is reviewing the legislation and said the industry remains committed to engaging with Warner, Congress, and state and local officials on responsible development and efficient use of energy and water.

State measures already in effect

The bills arrive as Virginia has begun changing how data centers pay for electricity. Virginia has more data centers than any other state, with Ashburn in Loudoun County known as Data Center Alley, according to ARLnow. The state's new two-year budget imposed a data center electricity consumption tax of $0.011 per kilowatt-hour of monthly use, effective July 1, 2026. Data centers and other large-scale energy users will also move to a new rate class on Dominion Energy bills starting January 1, 2027.