As data center development to support growing needs for cloud and AI computing continues to expand nationwide, two bills introduced in the U.S. House of Representatives on January 8 would increase federal oversight of the sector’s energy generation and water use, an issue with wide implications for local and regional groundwater resources.
The bills were introduced by Representative Robert Menendez (D-New Jersey). They are:
- The PRICE Act, which would require data centers to generate all the electricity they consume with escalating clean energy targets reaching 100 percent by 2040. While focused on energy, the bill could affect water demand depending on how on-site power generation and cooling systems are designed and operated.
- The Data Center Transparency Act that would require the U.S. Environmental Protection Agency to submit quarterly reports to Congress on data center water and energy use, including water reuse, pollution discharge, and impacts on local water supplies.
“While AI innovation is promising, we must ensure that our constituents are not negatively impacted because of the industry’s continued growth,” Menendez said.
NGWA has been actively educating its members on data center development and associated water and energy use. NGWA recently formed a Data Center Task Force, which will develop a position statement and white paper. The Association’s monthly trade magazine, Water Well Journal, published in its January 2026 issue part 1 of a series on data centers, examining water use, transparency gaps, and potential impacts on groundwater, highlighting the growing need for data-driven decision-making as the sector expands.
The Task Force will work to address groundwater availability, transparency in water use, and best practices for siting and operating data centers in ways that protect long-term water resources. NGWA members who are interested in participating should contact NGWA Director of Science and Technology William M. Alley, Ph.D., at walley@ngwa.org.