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SB417 • 2026

Cloud Computing Cluster Infrastructure Grant Fund; reclaimed water usage, definitions.

<p class=ldtitle>A BILL to amend and reenact § 59.1-284.42 of the Code of Virginia, relating to Cloud Computing Cluster Infrastructure Grant Fund; reclaimed water usage.</p>

Water
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Stuart
Last action
2026-02-10
Official status
Continued
Effective date
Not listed

Plain English Breakdown

The exact penalties or consequences for non-compliance with the reclaimed water requirements are not specified.

Grant Fund for Cloud Computing Centers; Reusing Water

This law requires data center operators applying for grants to use a certain amount of recycled water for cooling processes and increases this requirement over time.

What This Bill Does

  • Requires data center operators applying for grant payments from the Cloud Computing Cluster Infrastructure Grant Fund to utilize reclaimed water, as defined in the bill, for water-dependent cooling processes at their facilities.
  • Gradually increases the percentage of reclaimed water required for cooling processes starting at 60% on July 1, 2027, and reaching 100% by July 1, 2031.

Who It Names or Affects

  • Data center operators who apply for grants from the Cloud Computing Cluster Infrastructure Grant Fund.

Terms To Know

reclaimed water
Water that has been treated and cleaned to be reused, but not including water diverted from the Occoquan Reservoir Watershed.

Limits and Unknowns

  • The bill does not specify what happens if data centers do not meet the reclaimed water requirements.
  • It is unclear how this law will affect data centers outside of Virginia or those that do not apply for these grants.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

SB417AS1

2026-02-05 • Committee

General Laws and Technology Amendment

Plain English: The amendment adds a new condition to the definition of reclaimed water by excluding water that is diverted from the Occoquan Reservoir Watershed.

  • Adds an exclusion for reclaimed water that comes from the Occoquan Reservoir Watershed.
  • The amendment does not provide details on how this exclusion will be enforced or what specific impacts it might have.

Bill History

  1. 2026-02-10 Finance and Appropriations

    Continued to 2027 in Finance and Appropriations (15-Y 0-N)

  2. 2026-02-04 General Laws and Technology

    Reported from General Laws and Technology with amendment and rereferred to Finance and Appropriations (8-Y 5-N 2-A)

  3. 2026-02-02 Senate

    Fiscal Impact Statement from Department of Planning and Budget (SB417)

  4. 2026-01-13 Senate

    Prefiled and ordered printed; Offered 01-14-2026 26100086D

  5. 2026-01-13 General Laws and Technology

    Referred to Committee on General Laws and Technology

Official Summary Text

Cloud Computing Cluster Infrastructure Grant Fund; reclaimed water usage.
Requires data center operators applying for grant payments from the Cloud Computing Cluster Infrastructure Grant Fund to utilize reclaimed water, defined in the bill, for water-dependent cooling processes at data center and cloud computing cluster operations facilities. The bill gradually increases the reclaimed water utilization requirement at such facilities from 60 percent of all water-dependent cooling processes beginning on July 1, 2027, to 100 percent on and after July 1, 2031.

Current Bill Text

Read the full stored bill text 
(SB417)
AMENDMENT(S) PROPOSED BY THE SENATE
GENERAL LAWS AND TECHNOLOGY
1. Line 144, introduced, after
reclaimed water
insert
, other than reclaimed water diverted from the Occoquan Reservoir Watershed, as follows