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Federal Policy

House Bill Would Bar Corporate Lawsuits Against Cities Rejecting Data Centers

Rep. Bresnahan's legislation targets a legal tool companies have used to challenge local land-use decisions, raising questions about the balance between federal economic development priorities and...

The Congressional Times · June 11, 2026

Rep. Rob Bresnahan (R-Pa.) has introduced legislation in the U.S. House of Representatives that would restrict technology and data center companies from suing municipalities that reject applications to build data center facilities, according to reporting by Axios published in June 2026. The bill responds to a documented pattern of corporate legal action against local governments that have denied permits or imposed restrictions on data center construction based on concerns including noise, water usage, and energy consumption.

The legislation has not yet received a committee hearing date as of June 11, 2026, according to the congressional record. The bill's full text, committee referral, and co-sponsor list — if any — would be available through Congress.gov under Bresnahan's sponsored legislation. Bresnahan, a Republican representing Pennsylvania's 8th Congressional District, was elected in November 2024; his campaign finance disclosures are publicly available through the Federal Election Commission at FEC.gov.

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The measure arrives as local governments in multiple states have moved to limit data center development. Community opposition has centered on documented infrastructure demands: a single large-scale data center can consume between 20 and 50 megawatts of electricity and millions of gallons of water annually, figures cited in utility filings and environmental impact assessments filed with state regulatory bodies. Axios reported that members of Congress across the political spectrum are recognizing the issue as one with active constituent engagement at the local level.

From a federal policy standpoint, the bill would represent a restriction on corporate use of federal courts or preemption claims against municipal ordinances, though the precise legal mechanism — whether the bill invokes the Commerce Clause, limits federal court jurisdiction, or establishes another framework — remains unconfirmed pending release of the full bill text. The Congressional Budget Office score, which would estimate fiscal impact, has not been published as of this date.

What remains unknown: the full legislative text of Bresnahan's bill, its committee assignment, any co-sponsors, and whether companion legislation has been introduced in the Senate. The complete bill text would be the definitive public record to answer all four questions and is searchable at Congress.gov using Bresnahan's name under the 119th Congress sponsored legislation tab.

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