New house bill proposes taxing data centers based on electricity usage

Revenue from the bill would evenly fund five different federal projects.

1 minute read

August 20, 2026, 6:00 AM PDT

By Zachary Whalen


A birds eye view of a data center.

The bill comes at a time when data centers energy usage, and the financial strain on nearby communities, is particularly controversial. | Make more Aerials

Data centers across the United States face criticism for straining power grids and driving up electricity costs — and now, they may be taxed for it. On Aug. 13, Rep. Andrea Salinas introduced a new House bill that would tax qualifying data centers at 1-cent-per-kilowatt-hour. According to Reuters, Rep. Salinas predicts the tax will raise $1.76 billion annually. 

The bill, named the Data Center Community Reinvestment Act of 2026, would split revenue evenly between five different funds, including the Housing Trust Fund and the Land and Water Conservation Fund. It would also support the Energy Technology Trust Fund, which the bill establishes to support federal loan guarantees for advanced nuclear, clean energy and grid infrastructure projects. 

In a press statement, Rep. Salinas wrote that the bill is intended to help communities benefit from the growth of data centers rather than shoulder the operating costs, Shane Snyder writes for Data Center Knowledge. 

Read the full story, below.

Wednesday, August 19, 2026 in Data Center Knowledge

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