Requirements on developers of AI-focused data centers

(a)

Requirements

(1)

In general

A covered entity that intends to establish, operate, or own an AI-focused data center shall do the following: (A)Not later than 180 days before the date on which the developer takes a definitive step to establish an AI-focused data center, disclose to each relevant local elected official and to the public in a press release— (i)the location at which the AI-focused data center would be established; and (ii)the estimated— (I)resources needed to establish the AI-focused data center; and (II)environmental impact of the AI-focused data center; (B)Ensure that the developer does the following: (i)Engages local media. (ii)Posts on social media. (iii)Sends direct mail notices in the affected area. (iv)Posts physical signage at the proposed site. (v)Provides materials in multiple languages, including English, Spanish, and other commonly spoken languages in the affected area. (C)Limit the use of non-disclosure agreements during the process of establishing the AI-focused data center. (D)Not use a non-disclosure agreement with respect to a government entity or public resources. (2)

Joint disclosure requirement

If more than 1 covered entity is involved in the development, ownership, or operation of an AI-focused data center, such entities shall coordinate and issue a single, joint public disclosure that satisfies the requirements of paragraph (1)(A). Each covered entity shall be jointly and severally responsible for compliance with this subsection. (3)

Environmental impact analysis

In carrying out the requirement described in paragraph (1)(A)(ii)(II), a covered entity that intends to establish, operate, or own an AI-focused data center shall ensure that an environmental impact analysis is conducted by an independent third party, funded by the developer. (b)

Enforcement by Commission

(1)

Unfair or deceptive acts or practices

A violation of subsection (a) shall be treated as a violation of a regulation under section 18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)) regarding unfair or deceptive acts or practices. (2)

Powers of Commission

The Commission shall enforce subsection (a) in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the Federal Trade Commission Act (15 U.S.C. 41 et seq.) were incorporated into and made a part of this section, and any person who violates such subsection shall be subject to the penalties and entitled to the privileges and immunities provided in the Federal Trade Commission Act. (c)

Definitions

In this section: (1)

AI-focused data center

The term AI-focused data center means any facility, campus, structure, or portion thereof, whether newly constructed, expanded, retrofitted, leased, or operated, that is specifically designed, configured, or materially modified to support the training, fine-tuning, inference, deployment, or operation of artificial intelligence systems, including generative artificial intelligence systems. Such terms include any facility that— (A)houses or is designed to house high-density clusters of graphics processing units, tensor processing units, application-specific integrated circuits, or other specialized accelerators used for artificial intelligence computational workloads; (B)requires electrical load, cooling capacity, or water usage materially attributable to artificial intelligence computational operations; or (C)is represented in public disclosures, investor materials, marketing materials, or contractual agreements as providing computing capacity for artificial intelligence model development, training, or deployment. (2)

Commission

The term Commission means the Federal Trade Commission. (3)

Definitive step to establish an AI-focused data center

(A)

In general

The term definitive step to establish an AI-focused data center means an overt, verifiable action that demonstrates a significant financial or legal commitment to the construction or operation of an AI-focused data center. (B)

Inclusion

The term definitive step to establish an AI-focused data center includes the following: (i)The execution of a binding purchase agreement, long-term lease, or option contract for real property specifically zoned or designated for the use of an AI-focused data center. (ii)The execution of a binding agreement with an electric utility provider for the delivery of the specialized high-voltage power loads required to operate an AI-focused data center. (iii)The commencement of substantial on-site physical improvements, including grading, excavation, or the installation of specialized utilities, such as fiber-optic trunk lines or industrial cooling systems. (iv)The submission of final site plan applications or the receipt of critical environmental permits required specifically for large-scale computing operations. (v)The issuance of non-cancelable purchase orders for long-lead infrastructure items, such as industrial-scale generators, chillers, or high-density power distribution units. (4)

Environmental AI impact

The term environmental AI impact means any direct, indirect, or cumulative effect of a proposed action on the natural or human environment, including effects on air quality, water quality, soil, land use, wildlife, habitat, biodiversity, ecosystems, climate, public health, environmental justice communities, and the sustainability of natural resources. (A)The terms direct effects, indirect effects, and cumulative effects shall have the meanings given such terms in the regulations implementing the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), as published in the Federal Register and in effect on the date of enactment of this Act. (B)For purposes of this Act, such terms shall be interpreted consistent with longstanding Federal Register interpretations of those categories of environmental effects. (5)

Local elected official

The term local elected official means a governmental official elected on the Federal, State, or local level who represents a location in which a developer intends to establish an AI-focused data center. (6)

Non-disclosure agreement

The term non-disclosure agreement means any legally binding agreement (or provision thereof) executed between 2 or more parties that does the following: (A)Obligates a party (the Recipient) to maintain the confidentiality of specific, sensitive, or proprietary information disclosed to the Recipient by another party (the Discloser). (B)Prohibits the Recipient from sharing, publishing, or otherwise communicating any such information to any person not expressly authorized by the terms of the agreement. (C)Identifies the specific categories of the information (such as trade secrets, business negotiations, or client data) and the timeframe for which the obligation of secrecy remains in effect. (D)Subjects the breaching party to legal remedies, which may include monetary damages, injunction, or other equitable relief, as provided by law or the terms of the agreement. (7)

State

The term State means each State of the United States, the District of Columbia, each commonwealth, territory, or possession of the United States, and each federally recognized Indian Tribe. (8)

Covered entity

The term covered entity means any developer, operator, owner, or any combination thereof, that intends to establish, operate, or own an AI-focused data center that is engaged in, or whose activities substantially affect, interstate or foreign commerce, including through the transmission, processing, storage, or exchange of data across State lines or national borders, the procurement of goods or services in interstate commerce, or participation in interstate markets for computing infrastructure, energy, or digital services. (9)

Developer

The term developer means any person or entity that initiates, finances, manages, or oversees the planning, site selection, permitting, or construction of an AI-focused data center. (10)

Operator

The term operator means any person or entity responsible for the day-to-day management, maintenance, or functioning of an AI-focused data center, including the administration of computing infrastructure, utilities, or facility systems. (11)

Owner

The term owner means any person or entity holding legal title to, leasehold interest in, or controlling ownership stake in the real property, infrastructure, or computing assets comprising an AI-focused data center. (d)

Severability

If any provision of this section or the application of this section to any person or circumstance is held to be unconstitutional, the remaining provisions of this section and the application of this section to other persons or circumstances shall not be affected.