Federal Tax Targets Data Center Power

Representative Andrea Salinas has introduced the Data Center Community Reinvestment Act, which would impose a federal tax of one cent per kilowatt-hour on data centers using more than one megawatt of electricity, including power generated onsite.

The proposal could raise an estimated $1.76 billion annually for housing, conservation, environmental cleanup, transportation, clean energy and grid-related programs. It reflects growing policy attention to the electricity demand and community costs associated with expanding data center capacity, although the bill remains at the proposal stage.