To require data center operators to submit to States or the Administrator of the Environmental Protection Agency and the Secretaries of Energy and Agriculture reports on data center energy and water use, and for other purposes.
Summary
HR9825, introduced by Rep. Underwood (D-IL) and referred to the House Energy and Commerce Committee, requires data center operators to report energy and water usage to state or federal agencies. The bill is in early legislative stages with no funding, no cosponsors, and no compliance penalties. Market impact is neutral: the reporting adds minor administrative costs for operators like $EQIX, $DLR, $AMZN, $MSFT, and $GOOGL, but does not alter revenue, operations, or competitive dynamics.
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Key Takeaways
- 1.HR9825 is a procedural reporting bill with no funding, no authorizations, and no enforcement mechanisms.
- 2.Data center operators face negligible compliance costs; no impact on revenues, margins, or competitive positions.
- 3.The bill has low legislative momentum (single sponsor, no cosponsors, early stage) and unlikely to advance in this Congress.
Market Implications
The reporting mandate imposes trivial administrative costs. Data center REITs like Equinix and Digital Realty continue to trade on data center demand, AI workloads, and power availability—not on disclosure paperwork. Hyperscalers ($AMZN, , $GOOGL) remain driven by cloud revenue growth and AI capex cycles. Investors should ignore this bill as a market signal.
⚡ Government Convergence
This signal is one of the converging government actions below.
Over the last 90 days, 54 separate government actions have converged on AI Compute / Datacenter Power. What that means: federal dollars are already moving — agencies are soliciting bids and awarding contracts, not just talking, and legislation and executive action are building the policy and funding tailwind behind it. When independent channels move together like this — 26 bills, 23 federal contracts, 3 patents and 2 SEC filings — it's the clearest early tell that Washington is committing to ai compute / datacenter power, the kind of build-up that reshapes the sector well before it's obvious in the headlines.
Converging government actions
- BillUnleashing Low-Cost Rural AI Act · 2025-09-09
- BillClean Cloud Act of 2025 · 2025-11-20
- BillData Center Transparency Act · 2026-01-08
- ContractCLARK/SMOOT/CONSIGLI, A JOINT VENTURE: IGF::OT::IGF PRE-CONSTRUCTION SERVICES, NATIONAL AIR&SPACE MUSEUM REVITALIZATION · 2026-03-17
- BillTo facilitate the export of United States artificial intelligence systems, computing hardware, and standards globally. · 2026-04-22
- ContractBUCHANAN & EDWARDS, INC.: JOB CORPS DATA CENTER IT FACILITIES MANAGEMENT CONTRACT · 2026-06-16
- ContractACCENTURE FEDERAL SERVICES LLC: DATA CENTER SUPPORT SERVICES FOR THE OFFICE OF INFORMATION&TECHNOLOGY. IGF::OT::IGF · 2026-09-08
- ContractGENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.: OPERATE AND MAINTAIN THE OBIM INFRASTRUCTURE COMPONENTS AND ASSOCIATED APPLICATIONS AND OTHER FUNCTIONALITY OF THE PRODUCTION AND NON-PRODUC · 2026-09-17
- ContractFREQUENTIS USA, INC: $594M Department of Transportation Contract · 2026-09-22
- ContractPERATON ENTERPRISE SOLUTIONS LLC: IGF::OT::IGF: FEDERAL STUDENT AID'S VIRTUAL DATA CENTER, PROVIDING CENTRALIZED HOSTING AND MANAGEMENT OF ELECTRONIC DATA AND COMPUTER APPLIC · 2026-09-29
- BillData Center Transparency Act of 2026 · 2026-09-30
- ContractCA, INC.: NEW 66 MONTH OPEN-MARKET CONTRACT FOR RENEWAL OF CA SOFTWARE, SUPPORT SERVICES, AND MAINTENANCE. CA PROPRIETARY SOFTWARE PRODUCTS ARE USED E · 2026-09-30
- ContractDELL FEDERAL SYSTEMS L.P: DATA CENTER VIRTUAL INFRASTRUCTURE (DCVI) DELL SERVER REFRESHMENT HARDWARE FROM THE AGENCY SERVER HARDWARE IDIQ CONTRACT NO. 28321322D000600 · 2026-10-02
- ContractSCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $311M Department of State Contract · 2026-10-05
Full Analysis
HR9825 was introduced on July 22, 2026, and referred to the House Committee on Energy and Commerce. The bill mandates that data center operators submit reports on energy and water consumption to either the relevant state agency, the EPA Administrator, or the Secretaries of Energy and Agriculture. At this stage, the bill has no cosponsors and has not seen committee hearings. Legislative momentum is low.
The bill authorizes zero funding—it is a reporting mandate, not an appropriations bill. There is no tax credit, grant program, or procurement attached. The reporting requirement itself imposes compliance costs, but the amounts are de minimis relative to the revenues of major operators. Equinix and Digital Realty may see a few million in added overhead; hyperscalers like Amazon ($AMZN), Microsoft, and Alphabet ($GOOGL) will absorb costs with no measurable earnings impact.
There is no convergence with other legislative signals or executive actions. The two recent presidential proclamations—chemical manufacturing relief and Bears Ears expansion—are unrelated to data center reporting. The bill stands alone as an isolated transparency measure.
Structural winners and losers: No company benefits from a pure reporting mandate. The bill does not penalize high usage or reward efficiency. Data center operators face no operational constraints. Utilities that supply power to data centers are unaffected since the obligation falls on the operator, not the utility. The inclusion of the Secretary of Agriculture is unusual but likely reflects water use concerns in agricultural regions; no material impact on agriculture companies.
The legislative timeline is uncertain: committee markup, floor vote in the House, Senate companion introduction, and presidential action are all pending. Given the partisan nature (single Democratic sponsor, no cosponsors) and the 119th Congress's focus on energy dominance, the bill's passage probability is low.
Intelligence Surface
Cross-referenced against federal contracts, SEC insider filings & congressional trade disclosures
Limited confirming evidence — causal thesis exists but few external signals
What the bill does
Reporting obligation for data center energy and water use under HR9825; AWS is the largest cloud provider with massive data center footprint.
Who must act
Amazon Web Services as a data center operator; AWS accounts for ~16% of Amazon's total revenue (FY2025 ~$620B).
What happens
Compliance cost is a rounding error for Amazon (<0.01% of revenue). AWS already publicly reports sustainability metrics; incremental burden minimal.
Stock impact
No material financial impact. Reporting may increase transparency but does not constrain AWS growth or pricing. No competitive disadvantage vs peers.
What the bill does
Reporting requirement for data center energy and water consumption; Google Cloud and internal data centers are covered.
Who must act
Alphabet's data center fleet; Google has committed to 24/7 carbon-free energy by 2030 and already tracks detailed metrics.
What happens
Compliance overlap with existing reporting; incremental cost negligible. No changes to energy procurement or data center expansion plans.
Stock impact
Zero revenue or profit impact. GOOGL has ample resources to comply. The bill does not alter Google's competitive position in cloud or advertising.
Key Legislators
Connected Signals
Matched on shared policy language across AI analyses, with ticker & timing weight
FREQUENTIS USA, INC: $594M Department of Transportation Contract
FREQUENTIS USA, INC: $282M Department of Transportation Contract
THE VIRGINIA DEPARTMENT OF ENERGY: $197M Department of Energy Grant
BREX Net Lease Data Center I DST
BREX Net Lease Data Center I DST
BREX Net Lease Data Center I DST
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $311M Department of State Contract
Fusion Data Centers Inc.
Related Presidential Actions
Executive orders & memoranda affecting the same sectors or companies
Establishment of a Committee of Inquiry to Investigate Allegations of False Statements by Lisa DeNell Cook
This memorandum establishes a committee to investigate Federal Reserve Governor Lisa Cook for alleged false statements related to mortgage instruments, with a hearing scheduled and a recommendation on removal. It directs the Attorney General, Counsel to the President, and others to participate, and sets a timeline for findings.
Streamlining Access to Government Services Through America.gov
The executive order directs the General Services Administration to create America.gov, a unified digital portal for federal services, integrating Login.gov for authentication and requiring agencies to expose their digital services via APIs. It also mandates the use of AI (referred to as 'super intelligence') with transparency safeguards, while preserving existing service channels and excluding tax and defense/intelligence services.
Enhancing Program Integrity and Integrity and Interagency Coordination in the Administration of the H-1B Nonimmigrant Visa Program
This executive order directs the Secretaries of State, Labor, and Homeland Security to coordinate with Commerce, Education, and the SBA when processing H-1B petitions, and requires them to consider whether the employer has engaged in layoffs of similarly situated U.S. workers within the past year. It also orders the Labor Department to review past labor condition applications for potential enforcement actions against sponsoring employers, effectively tightening scrutiny on H-1B usage, especially by outsourcing firms.
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