The federal government is letting the rule that regulates how government data centers operate quietly expire on September 30, 2026. No replacement is planned.
The OMB Memorandum M-25-03, which provided implementation guidance for the Federal Data Center Enhancement Act, will sunset without a successor framework. In English: the set of standards that told federal agencies how to run, optimize, and measure their data centers is about to vanish, and nobody in Washington seems particularly eager to fill the gap.
A deregulatory push meets a patchwork of state laws
The expiration fits neatly into the Trump administration’s broader effort to streamline regulations around data center development. An executive order issued on July 23, 2025, accelerates permitting processes for data centers that require more than 100 megawatts of new electrical load or involve investments exceeding $500 million.
Over 300 data center-related bills have been introduced across 30 states in just the first six weeks of 2026. These bills span a wide range of concerns: energy costs, environmental impacts, ratepayer protections, and community impact assessments. Some states are actively courting data center operators with tax incentives. Others are tightening the screws on power consumption and noise pollution.
