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Senate Resources & Environment Committee advances bill limiting consumptive water use for data-center cooling

Senate Resources & Environment Committee · March 26, 2026
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Summary

The committee voted to advance H 895, which would bar new data centers that begin construction on or after July 1, 2026, from using consumptive (evaporative) water-cooling unless the water is supplied by an existing water district; the bill assigns the Idaho Department of Water Resources director evaluation authority and encourages closed-loop systems.

The Senate Resources & Environment Committee on March 26 advanced H 895, a bill that would limit consumptive use of water for cooling at certain data centers beginning July 1, 2026.

Representative Raybould told the committee the bill distinguishes three cooling approaches used in data centers: evaporative (consumptive), hybrid (cooling towers), and closed-loop (non-consumptive). He said large facilities using evaporative systems "could consume up to 100 million gallons of water per year," that hybrid systems use roughly 40–60% of what an evaporative system would use, and that a well-managed closed-loop system uses on the order of 100,000 gallons per year for makeup and losses. The bill would prohibit new data systems that begin construction from using consumptive (evaporative) systems unless the water is supplied by an existing water district that can contract with the facility.

During technical questioning, Senator Guthrie asked where water from a closed-loop system goes when it leaves a facility; Representative Raybould said closed systems still have annual losses (the bill’s example figure was roughly 100,000 gallons per year) and sometimes require water replacement for mineral buildup or chemical treatment. Senator Kohl asked whether systems that reinject water into aquifers for cooling would be covered; Representative Raybould directed members to Section 1 (lines 20–25), which gives the director of the Idaho Department of Water Resources (IDWR) authority to evaluate new appropriations or transfers of water rights for data centers and make determinations about what qualifies under the law.

Cynthia Gibson of the Idaho Conservation League testified in support of H 895, calling it a proactive attempt to address the environmental impacts of heavy water use by data centers. Representative Raybould said that Idaho currently has one data center outside Kuna and another being considered in the Magic Valley (Burley–Rupert) area, and he anticipated more interest given industry growth.

Senator Guthrie moved and Senator VanOrden seconded to send H 895 to the Senate floor with a do-pass recommendation; the motion carried by voice vote. The committee record notes the bill sets a statutory baseline while leaving site-specific water-right decisions to IDWR.