Enacts the "data center water stewardship and reuse act" to reduce reliance on potable public water supply systems and increase use of recycled or reclaimed water; provides for data center water use management into the state's environmental conservation framework, ensuring sustainability, watershed protection, and technological innovation; establishes the data center water stewardship fund.
S10487 would create the “Data Center Water Stewardship and Reuse Act” and add a new title to the Environmental Conservation Law regulating large-capacity data-center facilities. The bill targets facilities with at least 10 megawatts of electrical demand or those using more than 5 million gallons of potable water annually, and it applies to new construction, major expansions, and existing facilities. It requires new and expanded facilities to incorporate non-potable recycled water systems, closed-loop or hybrid cooling, and potable-water offset measures, while existing facilities must meet staged reduction targets for potable water use and recycled-water use by 2031 and 2035.
The bill also creates a permitting and certification framework under the Department of Environmental Conservation, in consultation with NYSERDA and the Public Service Commission. Local permits for covered facilities could not be issued without DEC certification that the water-reuse and cooling plan complies with the law. Covered facilities would have to file annual public reports on water use, discharge, cooling systems, and compliance status, and DEC would publish an annual statewide report. The bill further directs the state to develop technical standards, benchmarking tools, and design guidelines, and it authorizes grants, loans, tax credits, and other assistance for retrofits and pilot projects that reduce water use.
The bill’s enforcement provisions are significant: DEC could issue violations, impose civil penalties of up to $50,000 per day, suspend or revoke water-related permits or certificates, and seek civil enforcement in court. Penalty revenue would be deposited into a new Data Center Water Stewardship Fund in the State Finance Law, to be used for technical assistance, water-reuse research grants, and watershed restoration. The bill also allows variances and hardship relief, but states that facilities in critical water-stress areas may face stricter standards and fewer waivers.
Overall, the bill appears to be framed positively as an environmental and infrastructure measure, with an emphasis on sustainability, innovation, and reduced pressure on potable water supplies. Because no committee transcripts or votes were provided, there is no recorded legislative debate or formal vote history to indicate broader support or opposition. The structure of the bill suggests likely support from environmental and water-conservation advocates, while potential concerns would come from data-center operators, utilities, and local permitting authorities over compliance costs, technical feasibility, and the impact on project timelines.
Notable points of contention are likely to include the mandatory water-reduction timelines, the requirement to use recycled or reclaimed water, the feasibility of closed-loop cooling for all facilities, and the bill’s strong enforcement and reporting requirements. Facilities in water-stressed regions may object to stricter standards and limited waiver availability, while supporters may argue those provisions are necessary to protect watersheds and reduce competition with public drinking-water systems.
The bill would amend the Environmental Conservation Law by creating a new regulatory program for large-capacity data-center facilities and would amend the State Finance Law to establish a dedicated fund for enforcement-related revenues and water-reuse initiatives. It would expand DEC’s authority over permitting, certification, reporting, technical standards, and enforcement for covered facilities, while also affecting local zoning, planning, and building approvals by requiring DEC certification before permits may issue. The measure would directly affect data-center owners and operators, as well as state agencies, municipalities, utilities, and water-reuse infrastructure partners.
The bill’s overall tone is strongly pro-conservation and pro-innovation, presenting data-center water use as an environmental management issue that should be brought under state oversight. In the absence of committee transcripts or votes, there is no documented legislative sentiment from debate or roll call, but the bill text itself signals a policy preference for aggressive water-use reduction, transparency, and state coordination. The inclusion of incentives and technical assistance suggests an attempt to balance regulation with implementation support.
Likely points of contention include the cost and technical difficulty of retrofitting existing data centers, the feasibility of meeting the 50 percent and 75 percent potable-water reduction targets, and whether recycled-water infrastructure is available in all regions. Operators may also object to the permitting linkage, public reporting obligations, and daily civil penalties, while environmental advocates are likely to favor those provisions as necessary enforcement tools. Additional tension may arise over exemptions and variances, especially in water-stressed watersheds where the bill contemplates stricter standards and fewer waivers.