New legislation would require large data centers to publicly disclose water use
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As the race to build artificial-intelligence infrastructure accelerates across the United States, lawmakers in Utah are confronting a question many Western states are only beginning to ask:
How much water should massive data centers be allowed to use—and should the public know how much they consume?
A new proposal moving through the Utah legislature would require large computing facilities to publicly disclose their water consumption, a move aimed at addressing growing concerns about industrial water demand in an already water-stressed region.
The effort reflects rising scrutiny across the West as communities balance economic development with limited water supplies.
The Legislation
The proposal, Utah House Bill 453, would require data center operators to report their water use to the state.
Those disclosures would then become publicly accessible.
Supporters say the bill is designed to bring transparency to a rapidly expanding industry whose resource demands often remain largely invisible to surrounding communities.
Under the proposal, large computing facilities operating in Utah would need to report:
- total water consumption
- cooling system water usage
- water sources used to supply the facilities
The information would help regulators and residents understand how the growth of digital infrastructure affects local water systems.
Why Data Centers Use Water
Modern data centers generate enormous amounts of heat as servers run continuously to process data.
To maintain safe operating temperatures, many facilities rely on evaporative cooling systems, which circulate water to dissipate heat.
Depending on the design and size of the facility, water demand can be significant—particularly during hot summer months.
Large facilities supporting cloud computing or artificial intelligence workloads may use millions of gallons of water per day during peak operations.
That level of consumption has drawn increasing attention in regions facing long-term drought pressures.
The Great Salt Lake Context
Water debates in Utah have intensified in recent years as the state grapples with declining water levels in the Great Salt Lake.
The shrinking lake has become one of the region’s most urgent environmental concerns, prompting new policies aimed at conserving water and improving long-term resource management.
Against that backdrop, lawmakers say large new industrial water users deserve closer examination.
While agriculture remains the dominant water user in the region, policymakers argue that understanding the impact of emerging industries is essential for long-term planning.
Data Centers Arrive in the Mountain West
Utah has become an increasingly attractive location for data center development.
The state offers:
- relatively affordable land
- strong fiber-optic connectivity
- growing technology sectors along the Wasatch Front
- access to large electricity supplies
Major technology companies have expanded computing infrastructure across the Mountain West to support growing demand for cloud services and artificial intelligence.
However, the scale of that infrastructure has introduced new questions about energy and water use.
Transparency Versus Industry Concerns
Supporters of the disclosure bill argue that communities deserve basic information about how new industrial facilities affect local resources.
Public reporting, they say, would help policymakers make better decisions about land use, infrastructure planning, and water allocation.
Industry groups have raised concerns that detailed operational disclosures could expose proprietary information or create regulatory burdens for companies investing in the state.
Still, the bill does not limit water use directly.
Instead, it focuses on ensuring that data about consumption becomes part of the public record.
A Growing National Debate
Utah is not alone in examining the resource demands of data centers.
Across the United States, the rapid expansion of artificial intelligence infrastructure has begun to trigger new policy discussions about:
- electricity consumption
- transmission capacity
- water use for cooling systems
- land use impacts
Several states and municipalities have begun evaluating whether additional oversight is necessary as data center construction accelerates.
In some areas, local governments have considered moratoriums or special zoning rules while reviewing potential impacts.
A First Step Toward Resource Accounting
The Utah proposal represents one of the more measured approaches emerging so far.
Rather than restricting data center development, lawmakers are seeking to establish a clear accounting of water usebefore deciding whether additional policies are needed.
For communities trying to balance economic development with resource conservation, transparency may prove to be the first step in a much larger conversation.
As artificial intelligence infrastructure continues expanding across the United States, the question Utah lawmakers are asking today is likely to surface in many other places:
When the digital economy consumes physical resources like water and energy, how should those impacts be measured—and who gets to decide the limits?
