Tech

US Government Lets Critical Data Center Regulation Expiry

The US government plans to quietly allow the law that defines federal data center usage and performance standards, known as the Federal Data Center Enhancement Act (FDCEA), to expire, according to sources who spoke to WIRED. Neither Congress nor the Trump administration appears to be taking significant steps to protect or extend the law, or to put other programs in place.

Data centers have become a hot topic in recent months, as the tech industry goes all in on artificial intelligence and the infrastructure needed to power it. According to a Gallup poll from May, more than 70 percent of Americans oppose the construction of data centers, buildings that require energy and water for the AI ​​boom, in their communities. From Utah to Georgia, citizens across the political spectrum have come together to voice their opposition to data center construction.

Despite the public backlash, the Office of Management and Budget (OMB), the government agency that sets guidelines for how agencies implement policies that align with the president’s agenda, has not offered any plans on how federal agencies should manage the sunset or continue to use reporting beyond the law’s timeline. This, current and former employees at OMB and the General Services Administration (GSA) say, shows that the Trump administration is willing to take a more proactive approach to data center oversight and regulation.

Changes to the requirements set out in the FDCEA, in some jurisdictions, would have been in the works months before it expired. An employee of GSA, the agency that oversees government IT services and helps implement the FDCEA, says the lack of any kind of program is extremely rare. The employee spoke to WIRED on condition of anonymity for fear of retaliation.

“In the history of data center policies, there has never been a policy that has expired without one that has been laboriously worked on for three years,” said a GSA official. “Technology has changed a lot, it’s not about doing everything right, it’s about doing everything they can and renewing the new policy. They say they will make sure that private companies pay the fare, but they haven’t explained how they will do that.”

As the federal government continues to push organizations to adopt AI tools, the need for data centers and other technology infrastructure will grow. The Electric Power Research Institute, a non-profit research organization, estimates that by 2030, data centers may consume at least 9 percent of US electricity.

WIRED reached out to the offices of three senators who originally supported the FDCEA about plans, if any, to replace or renew the law.

There has been an explosion of data center-related legislation introduced in Congress this year, from bills mandating environmental reviews of data centers to bills designed to protect against site downtime. However, it appears that none of these bills are designed to address FDCEA requirements, nor do they specifically address government-run or chartered data centers.

“Data centers across the country contain sensitive and sensitive information, and we need to ensure they are protected from the growing cyber threats and natural disasters,” Senator Jacky Rosen, who sponsored the FDCEA when it was passed in 2023, told WIRED in an emailed statement. “My team and I know that the Federal Data Center Enhancement Act is set to sunset this fall and we are looking at all ways to ensure that Americans’ information stored in data centers continues to be secure.” However, Rosen’s office did not elaborate on what those plans are.

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