Federal Data Center Oversight Rule to Expire in September Without Replacement

The Office of Management and Budget will allow the Federal Data Center Enhancement Act requirements to sunset in September without issuing replacement rules. Agencies will no longer face mandatory reporting on energy use, water consumption, or contractor data center performance after that date.

The law, enacted in 2023, required agencies to consult energy specialists during design, track sustainability metrics for off-site facilities, and report results to the Office of Management and Budget. Earlier federal efforts dating to 2010 had set consolidation targets and moved workloads to cloud services.

Background on prior oversight Before 2010, agencies built data centers independently with little coordination on cost or efficiency. The 2014 IT reform law introduced measurable targets for energy use and security. The 2023 statute extended those targets to contractor-operated sites.

Current and former staff at the Office of Management and Budget and the General Services Administration told Wired that no internal planning documents for a successor policy have circulated. A General Services Administration employee said the absence of preparatory work is unusual.

Reporting and transparency changes The Federal IT Dashboard, which published contract and spending data, has also been discontinued. Without the dashboard, future data center contracts will lack a central public record. Senator Jacky Rosen, who sponsored the 2023 law, stated that her office is reviewing options to maintain security standards for federal data.

The Office of Management and Budget said it will meet statutory obligations but did not detail further steps. Matt Triner of Hunter Strategy noted that agencies will retain discretion over which metrics to track once the legal requirement ends.