THE DATA CENTER ACCOUNTABILITY ACT

Protecting American Taxpayers, Communities, and Natural Resources

A Public Policy Initiative of UGNN

♦️ SHOULD AMERICAN TAXPAYERS PAY FOR DATA CENTERS?

The rapid expansion of artificial intelligence and the data center industry is creating unprecedented demands for electricity, water, land, and public infrastructure. Private corporations are building facilities that can consume enormous quantities of public resources. Who pays for that growth? Should residential taxpayers subsidize the electrical infrastructure, water systems, roads, and other public services required by privately owned data centers? We believe the answer should be NO. Private industry must assume responsibility for the financial, environmental, and infrastructure costs associated with its operations. The following proposed mandates are intended to establish accountability BEFORE construction begins, rather than attempting to correct problems afterward.

♦️ MANDATE 1 — ENERGY INDEPENDENCE

DATA CENTERS MUST PAY FOR THE POWER THEY REQUIRE.

Data centers must provide dedicated power generation and energy storage sufficient to meet their operational requirements on their own premise. They are prohibited from being connected to the grid. Any electrical grid connection must be subject to strict conditions:

Developers must pay the full cost of their own power needs and dedicated infrastructure.
No additional infrastructure costs may be transferred to residential electricity customers.
No building permits are issued until energy generation and storage plans are fully approved by independent inspectors.

The objective is simple: A private corporation must not draw from the public power grid, nor increase the cost of electricity for American families to support its private business operations.

♦️ MANDATE 2 — WATER ACCOUNTABILITY

DATA CENTERS MUST ACCOUNT FOR EVERY GALLON OF WATER.

Water is an essential public resource. Data centers will not be permitted to consume community water supplies without assuming the full environmental and financial responsibility for that consumption. Proposed requirements:

Require on-premises water reconditioning and recycling and reuse. NO vapor may be exhausted or released into the atmosphere.
Require full disclosure and metering of total water withdrawals from public water resources
Require replenishment of water resources through approved aquifer recharge for such water as may be required to leave the premises.
Require compliance with applicable groundwater quality and environmental protection standards.
Require payment of water-impact fees reflecting the true local cost and scarcity of water.

Water used by private industry must be properly valued. Residential taxpayers should not subsidize the consumption of this essential resource. Every gallon counts. Every gallon must be accounted for and replenished.

♦️ MANDATE 3 — RESPONSIBLE LAND USE

PRIORITIZE EXISTING URBAN REDEVELOPMENT PROPERTY.

Data centers should not be permitted to consume undeveloped land, agricultural property, or environmentally sensitive areas when suitable previously developed properties are available. Proposed requirements:

Prioritize properly zoned commercial and industrial redevelopment locations.
Require acquisition of property at independently established fair market values.
Prohibit taxpayer-funded land transfers or below-market property subsidies.
Prohibit displacement of existing residents or affordable housing for private data center development.
Require independent environmental, noise, traffic, and community impact assessments

Redevelopment should benefit existing communities, not displace them.

♦️ MANDATE 4 — TAXPAYER PROTECTION

PRIVATE INDUSTRY MUST PAY ITS OWN WAY.

American taxpayers should not be expected to finance the infrastructure requirements of privately owned data centers. Proposed requirements:

No taxpayer-funded construction of private data center facilities.
No publicly funded electrical substations, transmission lines, water infrastructure, or roads dedicated to private facilities without full developer reimbursement.
Full disclosure of tax abatements, grants, subsidies, and other public incentives.
Independent economic analysis before any government financial assistance is approved.
Enforceable financial guarantees covering environmental remediation and eventual closure, through perpetuity.

Public money must serve the public interest.

♦️ MANDATE 5 — PUBLIC TRANSPARENCY

COMMUNITIES HAVE A RIGHT TO KNOW.

Data center operators must publicly disclose independently verified annual operating information. Required disclosures:

Total electricity consumed.
Total water withdrawn and consumed.
Water recycled, reused, and discharged.
Greenhouse gas emissions.
On-site fuel consumption and emissions.
Public subsidies and tax benefits received.
Infrastructure costs paid by developers versus those paid by the public.

Communities cannot protect themselves from costs and environmental consequences that remain hidden.

♦️ MANDATE 6 — ENVIRONMENTAL AND FINANCIAL LIABILITY

DEVELOPERS MUST BE RESPONSIBLE FOR THE ENTIRE LIFE OF THEIR FACILITIES.

The responsibility of a data center developer must not end when construction is completed. Proposed requirements:

Financial assurances for environmental remediation. Prior to permit issuance, data center owners must establish a financial reserve account equal to five years of projected operating expenses. Oversight must be provided by an independent accounting firm, adhearing to local and federal regulations.
Emergency response and environmental protection plans.
Monitoring of noise, air quality, and water impacts.
Financial guarantees for facility closure and decommissioning, through perpetuity.
Enforceable penalties for violations and failure to meet environmental obligations.

The public must not inherit the financial consequences of abandoned or improperly maintained facilities.

♦️ THE FUNDAMENTAL PRINCIPLE

Private corporations are entitled to pursue business opportunities and earn profits. But those profits should not come at the expense of American taxpayers, residential utility customers, local water supplies, or the environmental well-being of surrounding people and communities. PRIVATE PROFITS MUST NOT CREATE PUBLIC LOSSES. Data center development must demonstrate that it can operate responsibly BEFORE receiving permission to build. BEFORE permits are issued.

♦️ AN INVITATION TO PUBLIC DISCUSSION

This proposal is intended to encourage serious public discussion among:

American taxpayers and residential utility customers.
Municipal, county, and state elected officials.
Environmental protection organizations.
Utility regulators and water authorities.
Economic development agencies.
Data center developers and technology companies.

We welcome thoughtful discussion, additional recommendations, and constructive criticism. The expansion of the data center industry should not take place without corresponding accountability to the American public. LET'S PUT COMMUNITY PROTECTION FIRST.