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HF2001 • 2026

A bill for an act relating to water efficiency of data centers, including requirements for water-efficient cooling technologies and encouragement for the use of nonpotable and recycled water sources, providing civil penalties, and including effective date and applicability provisions.

A bill for an act relating to water efficiency of data centers, including requirements for water-efficient cooling technologies and encouragement for the use of nonpotable and recycled water sources, providing civil penalties, and including effective date and applicability provisions.

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
GEARHART
Last action
2026-01-13
Official status
Introduced, referred to Commerce. H.J. 40 .
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

A bill for an act relating to water efficiency of data centers, including requirements for water-efficient cooling technologies and encouragement for the use of nonpotable and recycled water sources, providing civil penalties, and including effective date and applicability provisions.

A bill for an act relating to water efficiency of data centers, including requirements for water-efficient cooling technologies and encouragement for the use of nonpotable and recycled water sources, providing civil penalties, and including effective date and applicability provisions.

What This Bill Does

  • A bill for an act relating to water efficiency of data centers, including requirements for water-efficient cooling technologies and encouragement for the use of nonpotable and recycled water sources, providing civil penalties, and including effective date and applicability provisions.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-01-13 Iowa Legislature

    Introduced, referred to Commerce. H.J. 40 .

Official Summary Text

A bill for an act relating to water efficiency of data centers, including requirements for water-efficient cooling technologies and encouragement for the use of nonpotable and recycled water sources, providing civil penalties, and including effective date and applicability provisions.

Current Bill Text

Read the full stored bill text
House

File

2001

-

Introduced

HOUSE

FILE

2001

BY

GEARHART

A

BILL

FOR

An

Act

relating

to

water

efficiency

of

data

centers,

including

1

requirements

for

water-efficient

cooling

technologies

and

2

encouragement

for

the

use

of

nonpotable

and

recycled

water

3

sources,

providing

civil

penalties,

and

including

effective

4

date

and

applicability

provisions.

5

BE

IT

ENACTED

BY

THE

GENERAL

ASSEMBLY

OF

THE

STATE

OF

IOWA:

6

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Section

1.

NEW

SECTION

.

455L.1

Purpose.

1

Water

is

Iowa’s

most

valuable

natural

resource.

It

is

2

the

intent

of

the

general

assembly

to

protect

Iowa’s

water

3

by

requiring

data

centers

to

adopt

cooling

technologies

that

4

significantly

reduce

water

consumption

and

by

promoting

the

5

use

of

nonpotable,

recycled,

and

treated

wastewater

in

cooling

6

systems.

The

general

assembly

encourages

innovation

in

7

water

reuse

and

treatment

to

reduce

strain

on

municipal

water

8

supplies

and

safeguard

Iowa’s

rivers

and

streams.

9

Sec.

2.

NEW

SECTION

.

455L.2

Definitions.

10

For

purposes

of

this

section:

11

1.

“Cooling

technology”

means

any

system

or

process

used

to

12

regulate

the

temperature

and

humidity

of

data

center

equipment.

13

2.

“Data

center”

means

a

facility

used

to

house

computer

14

systems

and

associated

components

that

consume

at

least

one

15

megawatt

of

electricity

annually.

16

3.

“Department”

means

the

department

of

natural

resources.

17

4.

“Expansion

or

renovation”

means

any

material

upgrade

to

18

an

existing

data

center’s

infrastructure

that

increases

its

19

cooling

capacity

or

floor

space.

20

5.

“New

data

center”

means

any

facility

applying

for

a

21

building

permit

for

a

data

center

on

or

after

January

1,

2026.

22

6.

“Nonpotable

water”

means

water

not

suitable

for

human

23

consumption

without

treatment,

including

surface

water,

river

24

water,

graywater,

or

treated

wastewater.

25

7.

“Treated

wastewater”

means

effluent

that

has

undergone

26

chemical,

physical,

or

biological

treatment

and

meets

all

27

regulatory

standards

for

noncontact

industrial

reuse.

28

8.

“Water-efficient

cooling

technology”

means

any

cooling

29

technology

that

achieves

a

water

usage

effectiveness

rating

of

30

two-tenths

or

lower.

31

9.

“Water

usage

effectiveness

rating”

means

a

metric

that

32

measures

how

efficiently

water

is

used

for

cooling.

The

rating

33

is

calculated

by

dividing

annual

water

usage

in

liters

by

the

34

energy

consumption

of

information

technology

equipment

in

35

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kilowatt

hours.

1

Sec.

3.

NEW

SECTION

.

455L.3

Cooling

and

water

sourcing

2

requirements.

3

1.

All

new

data

centers,

and

any

data

center

permitted

but

4

not

yet

under

construction

as

of

January

1,

2026,

must

utilize

5

water-efficient

cooling

technology.

6

2.

Any

expansion

or

renovation

of

an

existing

data

center

7

on

or

after

January

1,

2026,

must

bring

the

entire

facility

8

into

compliance

with

a

water

usage

effectiveness

rating

of

9

two-tenths

liter

per

kilowatt

hour.

10

3.

To

reduce

potable

water

demand

and

protect

the

state’s

11

freshwater

resources,

data

centers

are

encouraged

to

do

the

12

following:

13

a.

Utilize

air-based

or

hybrid

cooling

systems.

14

b.

Source

water

for

cooling

from

nonpotable

supplies,

15

including

the

following:

16

(1)

Surface

or

river

water.

17

(2)

Storm

water,

graywater,

or

other

recycled

sources.

18

(3)

Treated

wastewater,

especially

where

it

would

otherwise

19

be

discharged

directly

to

rivers

or

streams.

20

c.

Install

on-site

or

off-site

water

treatment

systems

that

21

bring

such

water

described

in

paragraph

“b”

to

the

appropriate

22

quality

for

cooling

system

use.

23

4.

Data

centers

utilizing

treated

wastewater

shall

24

coordinate

with

local

utilities

to

ensure

that

water

is

used

25

prior

to

discharge,

and

that

all

thermal

and

chemical

discharge

26

complies

with

applicable

environmental

standards.

27

5.

Facilities

subject

to

this

section

must

submit

a

cooling

28

and

water

sourcing

plan

to

the

department

prior

to

construction

29

or

expansion

or

renovation,

and

also

annual

compliance

30

reports

for

five

years

following

commissioning

or

expansion

or

31

renovation.

32

Sec.

4.

NEW

SECTION

.

455L.4

Enforcement

and

penalties.

33

1.

The

department

shall

adopt

rules

establishing

procedures

34

for

monitoring,

enforcement,

and

verification

under

this

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2001

chapter.

1

2.

The

department

may

conduct

inspections

and

audits,

order

2

the

submission

of

water

usage

and

sourcing

documentation,

and

3

review

treatment

and

cooling

system

operations.

4

3.

A

data

center

found

in

violation

of

a

rule

or

order

5

issued

pursuant

to

this

section

or

in

violation

of

section

6

455L.3

is

subject

to

the

following:

7

a.

A

civil

penalty

of

up

to

ten

thousand

dollars

per

day

of

8

noncompliance.

9

b.

A

corrective

action

order

with

a

compliance

timeline.

10

c.

Suspension

or

revocation

of

construction

or

operating

11

permits,

if

applicable.

12

Sec.

5.

NEW

SECTION

.

455L.5

Exemptions.

13

1.

Temporary

exemptions

of

no

greater

than

twelve

months

14

may

be

granted

by

the

department

to

new

data

centers

or

15

data

centers

undergoing

an

expansion

or

renovation

that

16

are

required

to

meet

the

requirements

of

section

455L.3

for

17

demonstrated

lack

of

feasible

technology

or

water

source

access

18

or

conditions

that

pose

a

risk

to

public

health

or

safety.

19

2.

Exemption

requests

must

be

supported

by

technical

20

documentation

and

include

a

proposed

path

to

compliance.

21

Sec.

6.

EFFECTIVE

DATE.

This

Act,

being

deemed

of

immediate

22

importance,

takes

effect

upon

enactment.

23

Sec.

7.

RETROACTIVE

APPLICABILITY.

This

Act

applies

24

retroactively

to

January

1,

2026,

for

all

new

data

center

25

projects

permitted

on

or

after

that

date,

any

previously

26

permitted

project

that

has

not

broken

ground

by

that

date,

and

27

any

data

center

expansion

or

renovation

undertaken

on

or

after

28

that

date.

29

EXPLANATION

30

The

inclusion

of

this

explanation

does

not

constitute

agreement

with

31

the

explanation’s

substance

by

the

members

of

the

general

assembly.

32

This

bill

relates

to

the

water

efficiency

of

data

centers,

33

including

requirements

to

implement

water-efficient

cooling

34

technologies

and

encouragement

for

the

use

of

nonpotable

and

35

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5

H.F.

2001

recycled

water

sources.

1

The

bill

defines

“water

usage

effectiveness

rating”

as

a

2

metric

that

measures

how

efficiently

water

is

used

for

cooling.

3

The

bill

explains

the

rating

is

calculated

by

dividing

annual

4

water

usage

in

liters

by

the

energy

consumption

of

information

5

technology

equipment

in

kilowatt

hours.

6

The

bill

requires

all

new

data

centers

not

under

7

construction

as

of

January

1,

2026,

to

utilize

water-cooling

8

technologies

to

meet

a

water

usage

effectiveness

rating

of

0.2

9

liters

per

kilowatt

hour

or

less.

The

bill

also

requires

any

10

current

data

center

undergoing

expansion

or

renovation

to

bring

11

the

entire

data

center

into

compliance

with

the

0.2

liters

per

12

kilowatt

hour

requirement.

13

The

bill

encourages

data

centers

to

utilize

air-based

or

14

hybrid

cooling

systems,

source

water

from

nonpotable

supplies,

15

and

install

water

treatment

systems

that

bring

nonpotable

water

16

to

the

appropriate

quality

for

cooling

system

use.

17

The

bill

directs

data

centers

using

treated

wastewater

to

18

coordinate

with

utilities

to

ensure

the

water

is

used

prior

19

to

discharge

and

that

all

discharge

is

in

compliance

with

20

environmental

standards.

21

The

bill

directs

data

centers

subject

to

the

requirements

22

of

the

bill

to

submit

a

cooling

and

water

sourcing

plan

to

the

23

department

of

natural

resources

(DNR)

prior

to

construction,

24

expansion,

or

renovation

and

an

annual

compliance

report

for

25

five

years

following

commissioning,

expansion,

or

renovation.

26

The

bill

directs

DNR

to

adopt

rules

establishing

monitoring,

27

enforcement,

and

verification

for

provisions

in

the

bill.

28

The

bill

allows

DNR

to

conduct

inspections

and

audits,

order

29

the

submission

of

water

usage

and

sourcing

documentation,

and

30

review

treatment

and

cooling

center

operations.

31

A

data

center

found

in

violation

of

the

bill

is

subject

to

32

a

civil

penalty

of

up

to

$10,000

per

day

of

noncompliance,

33

a

corrective

action

order

with

a

compliance

timeline,

or

the

34

suspension

or

revocation

of

construction

or

operating

permits.

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2001

The

bill

allows

temporary

exemptions

of

the

bill’s

1

requirements

to

be

granted

to

data

centers

for

demonstrated

2

lack

of

feasible

technology,

water

source

access,

or

conditions

3

that

pose

a

risk

to

public

safety.

The

exemptions

may

be

4

granted

for

no

longer

than

12

months

and

must

be

supported

by

5

technical

documentation

and

a

proposed

path

to

compliance.

6

The

bill

takes

effect

upon

enactment.

The

bill

applies

7

retroactively

to

January

1,

2026,

for

all

new

data

center

8

projects

permitted

on

or

after

that

date,

any

previously

9

permitted

project

that

has

not

broken

ground

by

that

date,

and

10

any

data

center

expansion

or

renovation

undertaken

on

or

after

11

that

date.

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