Rep. Ro Khanna, a California Democrat representing parts of Silicon Valley, is calling for a federal Data Center Bill of Rights that would establish regulations governing the rapidly expanding AI infrastructure industry. The proposal comes as data centers consume increasing amounts of electricity and water while reshaping local communities across the country.
The initiative marks an escalation in Democratic efforts to impose government oversight on the technology sector's physical footprint. Khanna, who serves on the House Oversight Committee, has been critical of what he describes as insufficient accountability for major tech companies' infrastructure decisions.
What the Left Is Saying
Progressive Democrats have largely welcomed Khanna's push for regulation. Supporters argue that data centers—critical to AI development and cloud computing—have expanded with minimal federal oversight regarding their environmental and community impacts.
"We can't allow the AI boom to happen without commonsense guardrails," Khanna said in a statement. "Communities deserve a voice in whether massive data facilities are built next to their neighborhoods, and we need transparency about energy usage."
Environmental advocates have pointed to data centers' significant power consumption as justification for federal standards. The Electric Power Research Institute estimates that data centers could account for up to 9 percent of U.S. electricity generation by 2030.
Rep. Pramila Jayapal, who chairs the Congressional Progressive Caucus, said: "Tech companies have built out enormous infrastructure while communities bear the costs in higher energy bills and environmental degradation. This is exactly the kind of issue where government needs to step in."
What the Right Is Saying
Republicans and some business groups have pushed back against what they characterize as regulatory overreach that could hamper American competitiveness in AI development.
"Instead of creating new bureaucratic hurdles, Congress should be removing barriers to domestic AI production," said Rep. Jay Obernolte, a California Republican who serves on the House Science Committee. "Washington regulation of data center construction sends exactly the wrong signal to companies considering where to invest."
The Chamber of Commerce argued that existing state and local zoning processes already provide adequate community input mechanisms. Industry groups have cautioned that prescriptive federal rules could slow deployment of AI infrastructure at a time when the United States is competing with China for technological leadership.
"Data center operators are already working with utilities and communities across the country," said Brian Anderson, senior vice president at TechNet, an industry association. "Layering additional federal mandates risks creating regulatory uncertainty that chills investment."
What the Numbers Show
The data center industry has expanded rapidly in recent years. According to Synergy Research Group, global data center construction spending exceeded $240 billion in 2025 alone.
Energy consumption figures highlight the scale of growth: the International Energy Agency projects that data centers could require up to 1,000 terawatt-hours of electricity annually by 2026, roughly doubling their current demand. In some regions, utility companies have reported significant load increases attributed to new facility construction.
Water usage for cooling systems has also drawn scrutiny. A recent study in the journal Nature found that major data center operators consumed between 1.5 and 3 billion gallons of water annually at U.S. facilities, with consumption rising alongside computational capacity.
The Bottom Line
Khanna's proposal represents an early-stage policy concept rather than a fully developed legislative framework. No formal bill text has been introduced, and the initiative faces significant hurdles in a divided Congress where Republican majorities have generally favored limiting federal regulatory authority over private industry.
The debate reflects broader tensions between Democrats prioritizing environmental and community protections versus Republicans emphasizing economic competitiveness and limited government intervention. Whether any version of a Data Center Bill of Rights gains traction will likely depend on whether bipartisan support can be assembled around narrower provisions addressing specific concerns such as energy reporting requirements or grid impact assessments.
Observers should watch for potential compromise measures that could attract votes from both parties, such as voluntary reporting standards or incentive programs for energy-efficient facility design. Any legislation moving forward would probably take a different form than Khanna's initial framing suggests.