To amend title 10, United States Code, to incorporate requirements for data centers for the protection of water resources, and for other purposes.
Summary
HR10004, introduced by Rep. Scholten, would require data centers to incorporate water resource protection measures. The bill is in early stage, referred to two committees. No funding is authorized. Impact on data center REITs EQIX and DLR is negative due to potential compliance costs, but the bill is procedural and unlikely to advance quickly.
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Key Takeaways
- 1.HR10004 is a procedural bill in early stage with no funding authorized.
- 2.The bill would impose water resource protection requirements on data centers, increasing compliance costs for operators.
- 3.Limited legislative momentum with only one cosponsor and referral to two committees.
- 4.Near-term market impact is low; no immediate changes to data center operations expected.
Market Implications
The bill's introduction has no immediate market impact. Data center REITs $EQIX and $DLR face potential long-term compliance costs if the bill advances, but given the early stage and limited support, the risk is low. No other sectors or tickers are directly affected.
Full Analysis
HR10004, introduced on 2026-07-30 by Rep. Scholten (D-MI), aims to amend title 10 of the U.S. Code to incorporate requirements for data centers regarding water resource protection. The bill is in its earliest stage, having been referred to the Committee on Oversight and Government Reform and the Committee on Armed Services. No funding is authorized or appropriated; the bill sets a regulatory standard. The legislative path is long, requiring committee hearings, markups, and floor votes in both chambers. The bill has only one cosponsor, indicating limited momentum. For data center REITs like EQIX and DLR, the bill introduces potential compliance costs for water efficiency and cooling systems, which could increase capital expenditures and operating expenses. However, given the early stage and lack of specific requirements, the near-term market impact is minimal. No convergence with other signals or procurement actions is identified.
Intelligence Surface
Cross-referenced against federal contracts, SEC insider filings & congressional trade disclosures
No confirming evidence found yet from contracts, insider trades, or congressional activity
What the bill does
New regulatory standard requiring data centers to incorporate water resource protection measures
Who must act
Data center operators
What happens
Increased capital expenditure for water efficiency and cooling systems; potential operational cost increases
Stock impact
EQIX, as a data center REIT, will face higher compliance costs for water resource protection across its facilities, impacting margins
What the bill does
New regulatory standard requiring data centers to incorporate water resource protection measures
Who must act
Data center operators
What happens
Increased capital expenditure for water efficiency and cooling systems; potential operational cost increases
Stock impact
DLR, as a data center REIT, will face higher compliance costs for water resource protection across its facilities, impacting margins
Key Legislators
Connected Signals
Matched on shared policy language across AI analyses, with ticker & timing weight
To require that new and existing data centers use off-grid power and water supplies, and for other purposes.
To direct the Assistant Secretary of Commerce for Communications and Information to conduct a survey with respect to data center resource consumption, and for other purposes.
No Harm Data Centers Act
A bill to amend the Public Utility Regulatory Policies Act of 1978 to establish a Federal standard relating to the recovery of the full, incremental costs of upgrades that serve large-load customers, and for other purposes.
To direct the Director of the National Institute of Standards and Technology to develop best practices for measuring data center energy use, study data availability for the purpose of improving energy demand forecasting capabilities, and for other purposes.
Data Infrastructure Risk Reduction Act
A bill to exempt AI data centers from bonus depreciation and require data center operators to submit certain information relating to electricity and water use by data centers, and for other purposes.
To amend the Public Utility Regulatory Policies Act of 1978 to add a standard prohibiting the recovery of costs associated with data centers by certain electric utilities, and for other purposes.
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Executive orders & memoranda affecting the same sectors or companies
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