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‘Data Center Bill of Rights’ Would Give Communities Power Over AI Projects

The nonbinding House resolution proposes 10 protections, including limits intended to keep households and small businesses from paying higher electricity costs.

 

Rep. Ro Khanna (D-Calif.) introduced a House resolution calling on Congress to enact a “Data Center Bill of Rights” that would give communities more power to reject, restrict, or pause AI data center projects.

House Resolution 1471 is nonbinding. It would express the position of the House but would not create federal requirements, enforcement powers, or deadlines. Congress would need to pass separate legislation to put the proposed protections into law.

Communities could reject or restrict projects

The resolution says communities should have the right to reject a proposed AI data center through a public process.

Counties and municipalities would retain the power to prohibit or regulate data centers without being overruled by their states. States could also pause new projects until they adopt protections for electricity customers, water supplies, and community involvement.

The proposal would allow data centers to be banned in residential areas and within 2,500 feet of homes, schools, childcare facilities, hospitals, and nursing homes.

Utility customers would receive cost protections

The proposed Data Center Bill of Rights calls for households and small businesses to be protected from higher electricity rates or fees caused by data centers.

Communities would also receive an independent public report before a project is approved. The report would assess the proposed data center’s effects on electricity demand, utility bills, public health, pollution, housing and consumer prices.

It would also disclose the number and types of jobs the facility is expected to create and its projected economic effects over 10 years.

The resolution says data center construction can create hundreds of jobs, but even the largest facilities often employ fewer than 150 permanent workers.

Water use and public subsidies would face scrutiny

Data center operators would disclose their expected water consumption to local water providers before receiving approval. The water provider would determine whether the project is compatible with the local supply, and operators would release water-use reports every six months.

The resolution also calls for limits on noise and air pollution, clean and reliable energy requirements, and agreements requiring data center developers to support local housing, infrastructure, training and permanent technology jobs.

Data center owners, operators and developers would pay state and local taxes. Any tax exemption or public subsidy would include labor rules, public disclosure requirements and provisions allowing the government to recover benefits when those conditions are not met.

The resolution was referred to the House Energy and Commerce and Judiciary committees on Aug. 3.

Clayton Rifkind

Clayton Rifkind is the Founder and Senior Editor of AI Risk Today. He also advises on business development for ESG Today, a leading source of ESG investment news and research for institutional investors and corporate leaders. He has 20+ years of experience in B2B technology, leading strategy and execution of go-to-market plans across software, enterprise platforms, and mobile applications. He founded two consultancies advising startups and Fortune 1000 companies, including Autodesk, Intel, and Microsoft. He began his career in the San Francisco advertising scene working with brands such as Hewlett-Packard, Intel, Microsoft, Symantec, and Wells Fargo. Clayton launched AI Risk Today in 2025 after two decades of watching enterprises adopt transformative technologies, and seeing how often risk, governance, and compliance considerations lagged behind. His reporting draws on primary sources including regulatory filings, court documents, and official announcements, with a focus on what AI developments mean for the executives accountable for managing them. Reach him at Reach him at [email protected] or on LinkedIn.

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