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US House proposes federal electricity tax on data centers

By PulseAugur Editorial · [1 sources] ·

A new bill in the U.S. House of Representatives, H.R. 10102, proposes a federal excise tax of 1 cent per kilowatt-hour on electricity consumed by data centers exceeding 1 megawatt in capacity. This legislation, known as the Data Center Community Reinvestment Act of 2026, aims to generate an estimated $1.76 billion annually. The revenue generated would be allocated to various federal programs including housing, conservation, infrastructure, and energy technology. This proposal follows Virginia's lead, which recently implemented a similar state-level tax on data center electricity consumption. AI

IMPACT This proposed tax could influence data center siting decisions and increase operational costs, potentially impacting the economics of AI and cloud computing infrastructure.

RANK_REASON The cluster discusses a proposed federal bill that would impose a new tax on a significant industry, impacting infrastructure and policy. [lever_c_demoted from significant: ic=1 ai=0.7]

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AI-generated summary · Google Gemini · from 1 sources. How we write summaries →

US House proposes federal electricity tax on data centers

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The cluster discusses a proposed federal bill that would impose a new tax on a significant industry, impacting infrastructure and policy. [lever_c_demoted from significant: ic=1 ai=0.7]
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policy, infra
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High
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45 days old
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COVERAGE [1]

  1. Data Center Knowledge TIER_1 English(EN) · Shane Snider ·

    House Bill Would Put Federal Electricity Tax On Data Centers

    H.R. 10102 would tax data center electricity at 1 cent per kWh, raising an estimated $1.76 billion annually for housing, conservation and infrastructure.

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