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Senator Tom Cotton (R-Ark.) introduced the DATA Act of 2026 on January 8, 2026, to exempt data centers and their power suppliers from federal energy regulations if they are fully isolated from the grid. The bill creates a new regulatory category — consumer-regulated electric utilities (CREUs) — for fully off-grid power systems serving data centers. CREUs would be exempt from FERC rate regulation, reliability standards, interconnection queue processes, and transmission planning requirements. Critics warn this would let data centers bypass grid oversight while still impacting nearby communities. Companion bills include Sen. Durbin's Data Center Water and Energy Disclosure Act (March 26, 2026) and a bipartisan Hawley/Warren letter to the EIA demanding mandatory reporting. Most analysts expect transparency/disclosure bills to pass before the more controversial Cotton bill.
California AB 1577 (Asm. Bauer-Kahan), as of March 2026 amended and re-referred to the Committee on Utilities and Energy, would require the California Energy Commission to establish a process for data center owners to submit monthly information including location, size, power usage effectiveness, water usage effectiveness, total water consumption, and fuel consumed by onsite generators. After Big Tech blocked stricter California data center rules in 2025 (leaving only a 2027 study requirement), AB 1577's reporting framework is the lone surviving regulatory bill of its kind. Locally, Monterey Park enacted a temporary moratorium and voters will consider a permanent ban in June 2026.
