Data center water consumption to be limited under bill heading to Senate floor

The Idaho Senate is set to consider House Bill 895, legislation aimed at restricting water consumption for data centers across the state. The bill, sponsored by Rep. Britt Raybould, R-Rexburg, passed the House in a 58-10 vote and moved through the Senate Resources & Environment Committee with minimal discussion. The core of HB895 is to prohibit data centers beginning construction after July 1 from using consumptive evaporative water systems, which release water vapor to dissipate heat and can consume up to 100 million gallons per year for large 50-megawatt facilities. The bill encourages the use of "non-consumptive" or closed-loop systems, which recirculate water and use significantly less (around 100,000 gallons annually). New data centers would only be permitted to use consumptive systems if they broker an agreement with a municipality or existing water district. Furthermore, the legislation directs the director of the Idaho Department of Water Resources to assess whether proposed data center water rights conflict with public interest, conservation efforts, or adversely affect local watersheds. Cynthia Gibson of the Idaho Conservation League praised the bill as a proactive step to mitigate significant environmental impacts from data centers. This legislative effort follows previous concerns regarding data center developments in the state, including resident criticisms in Kuna over potential water usage by a Meta data center announced in 2022. Meta subsequently committed to offsetting 100% of its water usage through restoration projects. In 2025, the Kuna City Council approved a rezoning request for Diode Ventures' 620-acre Gemstone Technology Park. Additionally, the U.S. Department of Energy selected Idaho Falls’ Idaho National Laboratory for a future AI data center.