New Britt bill encourages data centers to recycle water

U.S. Senators Katie Britt (R-Ala.) and Ben Ray Luján (D-N.M.) have introduced the Advancing Water Reuse Act, a bipartisan bill designed to provide a 30% federal tax credit for data centers and other industrial facilities that invest in water recycling technologies. The legislation aims to incentivize the capture and treatment of wastewater, stormwater, saltwater, or graywater for reuse, thereby reducing reliance on freshwater supplies. The initiative comes amid growing national concern over data centers' substantial water and energy consumption, with some facilities using up to 5 million gallons of water daily, comparable to a town of 10,000 to 50,000 people. Senator Britt highlighted the importance of a reliable freshwater supply for economic development and clean water access, noting that Alabama is developing water recycling technologies to alleviate strain on aging infrastructure. In Alabama, the debate over data centers is particularly active, with recent polling showing mixed public opinion on their impact. The Alabama Legislature earlier this year passed measures to reduce tax abatements for large data centers and mandate that these facilities, not neighbors, cover their energy costs. Concurrently, the Bessemer City Council recently approved the rezoning of nearly 900 acres for a large data center project, a decision that followed considerable public debate. The proposed federal bill is backed by organizations including the American Water Works Association and the U.S. Chamber of Commerce.