Yesterday, Congresswoman LaMonica McIver (D-10) introduced the AI Data Center Site Selection Transparency Act of 2026, a bill that would ensure communities are informed, before deals are finalized, of plans to build AI data centers in their neighborhoods, providing the opportunity for grassroots input. AI data center construction often leads to higher utility costs, strained infrastructure, and environmental damage in the regions they inhabit. This bill would specifically empower residents to shape the future of their communities.

“When communities are denied information, they are denied a voice,” said Rep. McIver. “Your energy bills shouldn’t skyrocket because a developer snuck an AI data center into your neighborhood without giving you the opportunity to speak out. No corporation should be able to change the fabric of a community and leave its residents to absorb the costs. That’s why I’m introducing this bill to demand transparency so residents have a real say in what’s happening in their community.”

In Kenilworth, NJ, residents are already experiencing the consequences of a broken process. A $1.8 billion AI data center project moved forward while many community members say they only learned about it through social media—despite living just 200 yards from the site. Neighbors have raised serious concerns about water quality, flood risk, and rising electricity costs, and more than 1,500 residents have signed a petition in opposition. When communities are kept in the dark, trust erodes, and the consequences fall on those least empowered to respond.

Rep. Valerie Foushee (NC-04) and Rep. Andre Carson (IN-07) are co-leads on the bill.

“Data centers are often shrouded in mystery, with plans moving forward before meaningful public input. Our bill will change that, requiring data centers to be transparent. Neighborhoods have to deal with the consequences of data centers – and so neighborhood input should be central, not an afterthought,” said Rep. Andre Carson.

“Our communities, especially Black and Brown communities, are feeling the impacts of rapid AI data center growth, from environmental harm and water stress to rising electricity costs,” said Rep. Valerie Foushee. “These facilities can consume as much energy as entire cities and place significant strain on local resources, yet too often communities are left out of decisions that directly affect their health, environment, and economic stability. I’m proud to introduce this legislation alongside my Congressional Black Caucus colleagues, Rep. McIver and Rep. Carson, and I will continue to pursue policies that strengthen transparency and establish clear safeguards to protect our communities and environment from harmful impacts.”

“AI data centers have massive impacts on energy use, water consumption, and cumulative health burdens, and industry often hides this information from communities during the proposal and development process. The AI Data Center Site Selection Transparency Act of 2026 advances much needed transparency that will reduce power imbalances between developers and communities. In particular, it addresses industry’s practice of hiding the true impacts of data centers behind the cloak of nondisclosure agreements and serves to give communities the knowledge and time to meaningfully react to proposed data center build-outs,” said Bryan Dunning, Senior Policy Analyst, Center for Progressive Reform.

“People have the right to know what’s being built in their communities and how it may affect their resources and energy bills. As data centers expand at an unprecedented pace, the public needs policies that ensure full transparency and public disclosure around data center development, water usage, and environmental impact,” said Marc Yaggi, Chief Executive Officer, Waterkeeper Alliance. “Community members deserve sustainable innovation, accountability at all levels, and clear, accessible information.”

“Congresswoman McIver gets everything right with this comprehensive bill demanding transparency by data center developers to communities surrounding these proposed projects,” said Public Citizen Climate Program. “Up to now, impacted communities are the last to know that their energy bills will multiply, water may be polluted, and residents' health may be threatened when data center developers work behind the scenes lobbying elected officials, especially at the state and local levels. With the AI Data Center Site Selection Transparency Act, developers must give communities ample advance notice of their plans to build, disclose key impacts, and most importantly this bill prevents backroom deal making between those developers and elected officials by restricting the use of NDAs. Congresswoman McIver is standing up for every single community from New Jersey to Hawaii, Texas to Maine that deserves an even shake when data centers come to town.

“Environmental justice demands transparency as a fundamental prerequisite to ensuring communities are adequately represented in decision making processes. Transparency is even more important now, as we increasingly see the undemocratic practice of companies using non-disclosure agreements (NDAs) that intentionally keep communities in the dark about unpopular data center projects being proposed in backyards,” said Yosef Robele, Federal Policy Manager, WE ACT for Environmental Justice. “These projects increase utility bills, worsen air and water pollution, and further reliance on fossil fuels. The AI Data Selection Transparency Act is an important step in promoting transparency and community involvement for projects that have detrimental impacts on host communities.”

“Families deserve real notice and clear information about how massive AI data centers could affect their daily lives—from electricity bills to water use and neighborhood health. This legislation ensures people, not corporations, have a real say, with transparent, accessible details and enough time to get involved before decisions are made. We thank Rep. McIver for championing accountability and putting people and their communities first when it comes to data center development,” said Matthew Davis, Vice President of Federal Policy, League of Conservation Voters.

“The AI Data Center Site Selection Transparency Act would establish important consumer protections for impacted communities,” said Jenifer Bosco, Managing Director of Energy Advocacy, National Consumer Law Center. “This bill stops data center developers from shrouding their actions in secrecy by requiring public analysis of the environmental impact and drain on a communities' resources.”

The AI Data Center Site Selection Transparency Act of 2026 would: 

• Require developers to publicly disclose proposed AI data center locations at least 180 days before any definitive step toward development, giving communities time to organize and respond.
• Require outreach through local media, social media, direct mail, and on-site signage so residents are actually informed—not just technically notified.
• Require multilingual, accessible materials so all affected communities can meaningfully participate.
• Require disclosure of electricity use, water consumption, cooling demands, and environmental impacts, backed by an independent, third-party analysis funded by the developer.
• Hold all developers, owners, and operators jointly responsible for accurate and complete disclosure.
• Restrict the use of non-disclosure agreements with public entities to prevent companies from hiding impacts from communities.
• Treat violations as unfair or deceptive practices under the Federal Trade Commission Act.

The bill is endorsed by: the League of Conservation Voters, People & Pollinators Action Network (PPAN), WE ACT for Environmental Justice, the Center for Progressive Reform, Public Citizen, the Waterkeeper Alliance, and the National Consumer Law Center.

Full text of the AI Data Center Site Selection Transparency Act of 2026 can be found here.