The Federal Data Center Enhancement Act (FDCEA), which sets cybersecurity and sustainability standards for federal data centers, is set to expire at the end of September 2026 without extension or replacement, government officials confirmed [1, 2]. The law was enacted in 2023 as part of the National Defense Authorization Act for Fiscal Year 2024, prior to the surge in AI data center demand [1].
Neither Congress nor the Trump administration has made moves to extend or renew the legislation. A General Services Administration (GSA) employee said, "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," underscoring the unusual lapse [2]. Another 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" [1].
Under the FDCEA, the Office of Management and Budget requires agencies planning new or upgraded data centers to undergo assessments by certified energy-efficiency specialists and factor in energy and water use in their designs [1, 2]. However, with the expiration pending, that regulatory framework will lapse.
The current administration favors a largely hands-off approach to regulating the AI data center sector, prioritizing advancement of AI technologies as key to national security and economic competitiveness [1, 2]. This contrasts with growing pushback from local communities across various states, where more than 70 percent of residents surveyed in a May 2026 Gallup poll voiced opposition to new data center construction over concerns about high energy and water consumption [2].
The FDCEA’s expiry comes without a replacement policy being prepared, a departure from the usual multi-year lead-time government protocols for data center regulation [1, 2]. Earlier in September, the Trump administration signed an AI executive order establishing voluntary federal frameworks for AI model access and cybersecurity, illustrating their preference for flexible governance methods over strict mandates [1].
The next key date is the end of September 2026, when the FDCEA will officially expire and federal data center regulation under this law will cease unless new legislation is introduced.
