Sponsors (5)
The bill forces large data centers to supply on-site clean power (100% by 2040), trading substantial grid reliability and emissions benefits and a boost for clean-energy deployment against high upfront costs, feasibility problems in constrained locations, strong penalties, and potential local environmental impacts.
Utilities and the electric grid will face less peak demand because large data centers generate their own power on-site, reducing strain and improving local grid reliability.
Data center operators and the clean energy industry will drive faster deployment of large-scale clean technologies (solar, wind, batteries, geothermal, green hydrogen, hydropower) to meet on-site power needs, accelerating market adoption and related jobs/investment.
Rural communities, taxpayers, and the broader public will see reduced long-term carbon emissions as high-consuming facilities are required to source 100% clean generation beginning in 2040.
Data center operators (and potentially their customers) will face large upfront capital costs to build on-site generation and storage, which could raise prices, reduce profitability, or delay expansion projects.
Operators in urban or space-constrained locations may be unable to meet on-site generation requirements, risking facility closures, lost services, or relocation of jobs and services.
High civil penalties (up to $100,000 per day) create severe financial risk for operators during compliance delays or outages, increasing the chance of litigation, bankruptcies, or service disruptions.
Based on analysis of 2 sections of legislative text.
Requires U.S. data centers consuming ≥50 MW/day to generate all electricity they use and meet phased clean-energy on-site generation targets (75% by 2035–2039, 100% by 2040) with penalties.
Requires large U.S. data centers (those using at least 50 megawatts per day) to generate all electricity they consume and meet phased clean-energy shares: at least 75% clean energy from Jan 1, 2035–Dec 31, 2039, and 100% clean energy starting Jan 1, 2040. The law defines eligible “clean energy” sources, creates civil penalties up to $100,000 per day for violations, and directs the Secretary of Energy to set up an administrative penalty process within 30 days of enactment.
Official title: To require data centers to generate electricity, and for other purposes.
Introduced January 8, 2026 by Robert Menendez · Last progress January 8, 2026