The US government is quietly allowing a key regulation governing federal data centers, the Federal Data Center Enhancement Act (FDCEA), to expire this fall without a replacement plan, according to sources who spoke to WIRED. Neither Congress nor the Trump administration appears to be taking steps to extend or replace the rule.
Growing Demand Amid AI Boom
The rule's expiration comes as data centers become a hot-button issue. According to a Gallup poll from May, more than 70 percent of Americans oppose data center construction in their communities. The Electric Power Research Institute estimates that by 2030, data centers could consume at least 9 percent of US electricity. As the federal government pushes agencies to adopt AI tools, demand for data centers and technical infrastructure is only set to grow, according to WIRED.
What the FDCEA Does
The FDCEA outlines standards for federal data center usage and operations, including reporting requirements and oversight. The Office of Management and Budget (OMB) typically sets guidance for agencies to implement such policies. However, current and former workers at OMB and the General Services Administration (GSA) say the absence of any plan from OMB signals that the Trump administration is taking an even more hands-off approach to data center regulation, WIRED reported.
"Never in the history of data center policies has a policy expired without another one having been painstakingly worked on for three years behind the scenes," a GSA employee told WIRED on condition of anonymity.
The GSA employee added: "The technology has changed so much it's not about getting everything right, it’s about doing the best they can and updating to a new policy. They claim they’re going to make sure private companies pay their fare share, but they haven’t explained how they’ll do that."
Political Response and Lack of Action
Senator Jacky Rosen, who sponsored the FDCEA when it passed in 2023, told WIRED in an emailed statement: "Data centers across the country house critical and sensitive information, and we need to ensure they are protected from increased cyber threats and natural disasters. My team and I are aware that the Federal Data Center Enhancement Act is set to sunset this fall and are looking at all options to ensure Americans’ personal information housed in data centers continue to be secure." Rosen's office did not elaborate on specific plans.
WIRED also reached out to three other senators who originally sponsored the act but received no further details. A search of reginfo.gov, the OMB website listing the president’s Unified Agenda, turns up nothing for the FDCEA. The White House did not respond to requests for comment. A GSA spokesperson referred WIRED to OMB, and an OMB spokesperson said it will fulfill all statutory requirements.
Implications for Enterprise Cloud Infrastructure
For enterprise technology leaders, the expiration of FDCEA means reduced federal oversight of data center efficiency and security at a time when cloud infrastructure demand is surging. The rule's sunset could affect standards for cybersecurity and energy efficiency in federal data centers, as noted by Senator Rosen. Without a replacement, federal agencies may lack updated guidelines for managing the growing number of data centers needed to support AI and other digital services.
A burst of data-center-related legislation has been introduced in Congress this year, from bills mandating environmental reviews to those protecting local moratoriums. However, none address the requirements in FDCEA or specifically target federally run or leased data centers, according to WIRED.
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