Data Center Tax Accountability and Disclosure Act of 2026

The bill would amend the Internal Revenue Code to exempt AI data centers from bonus depreciation tax benefits, while requiring operators of large data centers (25 megawatts or more) to disclose detailed annual information on electricity and water use, backup power, emissions, and property setbacks. It applies to data center operators, including those running dual-use or non-Federal facilities, and mandates reporting to either electing states or federal agencies (Secretary of Energy and EPA Administrator), with provisions for public disclosure. The bill also sets standards for federal data center disclosures and defines key terms like AI data center, power usage effectiveness, and water usage effectiveness. These requirements take effect for property placed in service after enactment, with initial disclosures due within 180 days for existing centers and before operations begin for new ones.