DATA CENTERS – Adds to existing law to establish limitations on consumptive use of water for cooling certain data centers.
Summary
House Bill 895 addresses water use by data centers in Idaho. It adds a new section to Title 42 of the Idaho Code limiting how data centers that begin construction on or after July 1, 2026 may use water for cooling. Under the bill, such water use may not be a consumptive use unless the water is supplied by a municipal water system, a water district, or a water and sewer district system.
The bill also includes legislative findings stating that data centers require significant amounts of water and that this use conflicts with the local public interest, is contrary to water conservation, and may adversely affect the local economy when water is diverted outside the watershed or local area where it originates. It directs the Department of Water Resources director to consider these findings when evaluating new appropriations or transfers of water rights for data centers.
Impact
The bill amends Chapter 2, Title 42, Idaho Code by creating Section 42-252 and effectively narrows the circumstances under which data centers may obtain or use water for cooling as a consumptive use. It also reinforces the standards the Department of Water Resources applies under existing water-rights review provisions by declaring legislative findings relevant to local public interest, conservation, and economic impacts. The practical effect is to place new limits on future data center development and water-right applications, while exempting uses supplied through specified municipal and district water systems.
Sentiment
The bill appears to have received generally favorable support in both chambers, passing the House 55-10 and the Senate 32-1. The strong margins suggest broad agreement with the policy goal of protecting Idaho water resources from large consumptive uses by data centers. The recorded votes indicate that most legislators supported the measure, and the bill was ultimately signed by the governor and enacted as session law.
Contention
The main point of contention is the balance between attracting or accommodating data center development and protecting water supplies, local economies, and conservation interests. Supporters appear to view the bill as a necessary safeguard against large-scale water consumption by a growing industry, while opponents likely objected to the restrictions on data center operations or to the Legislature pre-judging water-right applications through findings that characterize data center water use as contrary to the public interest. The dissenting votes in both chambers indicate some concern about the bill’s economic or regulatory impact on the industry.
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