Utah considers changes to laws governing data centers
Utah is evaluating potential legal changes to mandate water-saving technologies for data centers, as current adoption is voluntary despite significant conservation benefits. Lawmakers are addressing concerns about water depletion and political backlash against data centers amid a severe drought. The state's legislative interim committee is examining options to regulate the growing industry's water usage.
Utah lawmakers are evaluating changes to laws governing data centers due to growing concerns over water consumption, especially amidst a severe drought and increasing public backlash. Jake Garfield, deputy director for the Utah Office of Energy Development, informed the Economic Development and Workforce Services Interim Committee that while Utah leads in "smart data center policy," there is currently no legal requirement for facilities to adopt water-saving technologies, despite the state having 48 operational data centers and more under development.
Garfield highlighted the Novva Data Center in West Jordan as a pioneer, having opened in September 2021 with a closed-loop cooling system that has saved an estimated 300 million gallons of water annually compared to traditional evaporation methods. He also pointed to Valar Atomics' partnership with Nvidia to build a "waterless" mega data center in Emery County, which will be powered by a Valar Atomics reactor cooled by inert helium gas. These examples demonstrate significant water conservation potential.
However, Utah Rep. James A. Dunnigan questioned the lack of statutory requirements for data centers to utilize such systems. Garfield confirmed that market forces, driven by the cost of water, are pushing companies towards these technologies, but conceded that wealthy operators could bypass conservation efforts by purchasing existing water rights. The political implications of data center development are also significant, with the industry linked to decreased job approval for Utah's Gov. Spencer Cox and contributing to a state Senate President's primary loss, underscoring the urgency for legislative action.