The U.S. government is set to allow the Federal Data Center Enhancement Act (FDCEA) to expire on September 30, 2026, with no replacement policy in place, according to current and former federal workers. This leaves federal agencies without operational, cybersecurity, and energy-efficiency standards at a time when AI-driven infrastructure demand is accelerating.
The FDCEA, passed in 2023 as part of the National Defense Authorization Act for Fiscal Year 2024, required agencies planning new data centers or major upgrades to arrange assessments by certified energy-efficiency specialists and account for energy and water use in facility designs. OMB, which issues implementation guidance for the law, has signaled no plans to extend or replace it.
“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 General Services Administration (GSA) employee told Wired, speaking on condition of anonymity. “By letting this expire, OMB is going to enter into this new age of prioritizing rapid AI development over any sort of centralized control or rigorous standards.”
Sen. Jacky Rosen of Nevada, who originally sponsored the FDCEA, said her office is “looking at all options to ensure Americans’ personal information housed in data centers continues to be secure,” but did not elaborate on any specific legislative path forward.
Matt Triner, founder of Washington, D.C.-based IT consulting firm Hunter Strategy, said the expiration goes beyond operational efficiency. “Visibility is a big part of security, and you’re stripping away a lot of tools that were used to make sure that it happens,” Triner said.
The expiration coincides with a broader federal push to expand AI infrastructure.
An executive order signed by President Donald Trump on July 23, 2025, directed agencies to expedite permitting for data center projects requiring more than 100 megawatts of new electrical load or investments exceeding $500 million.
Sources told Wired that OMB’s decision to allow the FDCEA to sunset is in keeping with the spirit of that order.
An OMB spokesperson said the agency “will fulfill all statutory requirements.” The White House did not respond to requests for comment.
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