New bill forces Utah data centers to disclose water use estimates

Utah has become one of the first states to mandate that new data facilities moving into the state publicly disclose their estimated annual water usage to state officials. Lawmakers recently passed the Data Center Water Transparency Amendments in response to growing concerns over Utah's dwindling water resources and a severe drought. Conservationists, including Zach Frankel, executive director of the Utah Rivers Council and Great Salt Lake Waterkeeper, have advocated for stronger measures to protect the state's water. Frankel highlighted that two data centers can consume as much water as a city of 100,000 people and expressed concern that server farms are allowed to keep actual water use records secret, leaving local officials unprepared to negotiate terms. He also argued that data centers offer minimal long-term job creation after construction, making them a poor investment compared to traditional development due to their high demand for water and power. The data center industry, which includes 48 operational facilities and over 900 megawatts of capacity in Utah, has labeled the new regulations as "burdensome" and warned that they could impede economic growth. Despite industry opposition, the state's move reflects a growing trend to address the environmental impact of data centers.