Data Centers
State Data Center Water Usage Legislation Gains Momentum in 2025
March 3, 2026 | Kim Miller
States are introducing data center water usage legislation to address concerns about water consumption, with California, Iowa, and Michigan considering bills that require operators to submit regular reports on their water use. Several states are exploring state data center water regulations that would mandate closed loop cooling systems, including South Carolina and Kansas, which would require data centers to use cooling technologies that don't rely on water evaporation. The data center reporting requirements that states are considering vary in approach, with some requiring monthly reports to energy commissions while others place the reporting burden on state agencies like public service commissions. Virginia's approach to data center environmental legislation in 2025 focuses on incentivizing the use of reclaimed wastewater in cooling systems rather than mandating specific technologies, conditioning grant funds on using treated wastewater instead of potable water. Georgia is working to increase transparency by prohibiting local governments from entering nondisclosure agreements with data center operators that would hide information about energy and water usage from the public.
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