New tax on data centers funds conservation, housing, and roads
H.R. 10102 — Data Center Community Reinvestment Act of 2026 · Filed by Andrea Salinas (D-OR) · Introduced Aug 13, 2026 · Referred to committee
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What it does
This bill imposes a 1-cent-per-kilowatt-hour federal excise tax on electricity consumed by data centers with peak power loads exceeding 1 megawatt. The tax revenue is split five ways: 20% each to the Land and Water Conservation Fund, Housing Trust Fund, Hazardous Substance Superfund, Highway Trust Fund, and a new Energy Technology Trust Fund (which funds energy-policy loan guarantees). Data center operators bear the tax cost; the public receives reinvestment in conservation, housing, infrastructure, and clean-energy financing.
Why we flagged it
The bill's core mechanism is a straightforward 1-cent/kWh excise tax on data-center electricity, with revenue directed to five public funds. The title accurately reflects the reinvestment purpose, and the operative provisions are plainly stated.
What the text implies
- Tax incidence will likely shift to end-users (cloud-service subscribers, streaming consumers, enterprise software users) through higher service fees, making the tax regressive across income groups.
- Data centers in high-electricity-cost regions (e.g., California, Northeast) face compounded cost pressure, potentially accelerating migration to lower-cost jurisdictions and reducing local tax bases.
The full analysis lists 5 implications of this text.
Who stands to gain
renewable energy developers (via Energy Technology Trust Fund loan guarantees); conservation nonprofits and land trusts (Land and Water Conservation Fund); affordable-housing developers (Housing Trust Fund)