The Data Center Divide
Shelby County
For Shelby County, see Iowa’s statewide laws and regulations below. No additional county-specific measures are listed in our research.
Neutral Data Center Policies
Iowa offers qualifying data centers tax exemptions and refunds, including for leased facilities, but requires eligibility standards and annual reporting; some electricity and backup-fuel tax breaks expire after 10 or 15 years. Data centers are excluded from two incentive programs, while sustainable-design standards apply only to facilities seeking that approval.
Incentives
Sales Tax ExemptionUse Tax ExemptionFull Tax Refund
Eligible large data centers may purchase qualifying items exempt or claim a full refund. Separate tiered partial refunds and property-tax frameworks are excluded from this row.
Sales Tax ExemptionUse Tax Exemption
Specified operational purchases are exempt, subject to eligibility and later fuel/electricity duration limits. Does not count property-tax exemptions or other data-center refund tiers as additional benefits of this framework.
Financial Incentive6
No financial incentive in this failed reporting and tariff proposal. Separate tariffs are a cost-allocation mechanism, not a grant, exemption, refund, or subsidy.
No independent monetary incentive is created; this rule supplies approval criteria including for projects seeking to qualify for a tax credit or tax refund. Underlying tax incentives are separate statutory frameworks; current statutes govern eligibility and prevail over conflicting older administrative provisions.
No new incentive created by this proposal. It concerns disclosure of tax incentives under existing exemption/refund frameworks and covered IEDA awards, rather than new eligibility or benefit amounts; failed and unenacted.
No data-center incentive granted; this provision excludes data centers from tax incentives under the program.
No financial incentive established; this failed proposal addresses requirements for water-efficient cooling technologies and penalties, rather than a grant or tax benefit.
No data-center incentive is conferred by this framework: data-center businesses are expressly excluded from eligibility. The broader MEGA program's tax benefits are not available to businesses within this exclusion.
Property-Tax Exemption
Exempts qualifying operational equipment and infrastructure, not land, buildings, improvements or chapter-437A-assessed power distribution systems. No fixed dollar award is stated.
Sales And Use Tax Refund
Conditional 50% refunds of state sales/use tax, capped at 5% of sales price, with local-option taxes excluded. The small tier covers qualifying fuel/electricity; the larger tier also covers specified operational equipment and infrastructure. Not a property-tax exemption or grant.
Sales/Use-Tax ExemptionSales/Use-Tax RefundProperty-Tax Exemption
Amends existing incentive frameworks rather than creating another program: allows leased data centers to qualify for sales/use-tax exemption or refund and extends property-tax eligibility to leased facilities, while limiting new-project energy-exemption duration.
Proposed Condition On Existing Sales/Use-Tax Exemptions And Refunds
Does not create a new tax incentive. Would impose a minimum five-percent reinvestment condition on section 423.3(95) exemptions and section 423.4(7)-(8) refunds. Failed proposal; existing incentives are tracked separately.
Requires qualifying Iowa data centers to register and report annually for the major tax exemption, while limiting electricity and backup-fuel tax exemptions for newer facilities to 10 or 15 years, depending on location.Iowa — Data-center sales/use tax exemption (Code §423.3(95); IAC 701—215.12)
What this means
The measure offers substantial tax savings for building and operating data centers, including exemptions for equipment, electricity, and backup fuel, plus partial refunds for some smaller investments (qualifying purchases). Those benefits come with significant eligibility conditions, including investment and facility-size minimums, sustainability standards, and annual reporting (requirements).
People behind it
- Iowa General Assembly
Enacted H.F. 2357 and H.F. 976.
- Iowa Department of Revenue
Administers the tax provisions and data center sales and use tax incentives described in the sources.
Restrictions & requirementsHide restrictions & requirements5
To qualify for the large data-center exemption, a business must invest at least $200 million at an Iowa location within six years, measured from site-preparation activities or, where applicable, the initial lease term. If it fails to reach 80% of the required investment within that period, it loses the exemption and must pay the tax that would have been due, plus applicable penalties and interest. minimum investment and consequences of falling short
For the partial-refund program under section 423.4(7), the investment must be made within three years, measured from site preparation or the start of the initial lease term, as applicable. investment timing for the three-year period
For the partial-refund program under section 423.4(8), a business must invest at least $10 million for new construction or $5 million for a rehabilitated building within six years, measured from site preparation or the initial lease term, as applicable. minimum investment thresholds
To maintain registration for the large exemption, a data-center business must file an annual report describing its prior-year purchases of backup-generation fuel and electricity. Starting after January 31, 2026, it must also present an annually issued exemption certificate when purchasing exempt property. annual reporting and exemption-certificate requirements
For new construction or additions completed on or after June 6, 2025, the large exemption for backup-generation fuel and electricity lasts 10 years if the property is entirely or partly in a city with more than 30,000 people, and 15 years otherwise. The exemption has no time limit for property where the business began operating before June 6, 2025. time limits for fuel and electricity exemptions
Benefits & exceptionsHide benefits & exceptions3
A data center business investing at least $200 million in Iowa may claim a sales and use tax exemption for qualifying computers, equipment, related property, backup power fuel, and electricity. The investment must be made within six years, and the business must meet the physical-size and sustainable-construction requirements. A business leasing space for its data center may qualify. The exemption for computers and related property is permanent; the exemption for fuel and electricity is permanent for facilities operating before June 6, 2025, and generally lasts 10 or 15 years for later construction or additions, depending on location. The exemption is limited to qualifying operational or maintenance uses, and the law requires registration and annual reporting. The exemption covers qualifying data-center purchases; a lessee may qualify.
A data center making at least $1 million but less than $10 million in investment for new construction, or less than $5 million for a rehabilitated building, may qualify for a partial refund of 50% of Iowa sales and use tax paid on qualifying items, up to 5% of their sales price, for the first five years of operation. The investment must be made within three years; local option sales tax is not included in the refund. The partial-refund program has a $1 million minimum investment.
A data center investing at least $10 million for new construction or $5 million for a rehabilitated building, but less than $200 million, may qualify for a partial refund of 50% of Iowa sales and use tax paid on qualifying items, up to 5% of their sales price. The refund lasts 10 years for investments below $136 million and seven years for investments of at least $136 million but below $200 million. The investment must be made within six years, and the facility must meet specified size and sustainable-construction requirements; qualifying lease value may count toward the investment. The refund period depends on the investment amount.
Sources
Allows data center construction projects to qualify as sustainably designed if they earn LEED Certified status and meet ASHRAE 90.1-2007 energy standards, with a limited exception if LEED certification cannot be obtained despite a good-faith effort.Iowa — Data-center-specific sustainable-design approval framework and 2025 replacement (481—301.34(3))
What this means
Data centers seeking sustainable-design approval must meet LEED Certified and ASHRAE energy standards, which adds some cost and effort. This is a minor burden because the rule does not require every data center to obtain that approval or meet these standards just to operate.
People behind it
- Building Code Commissioner
Amended the sustainable design standards and adopted the rulemaking.
- Department of Inspections, Appeals, and Licensing
Adopted the rulemaking that consolidated and replaced the state building code chapters.
Restrictions & requirementsHide restrictions & requirements2
For a data center or web portal project seeking sustainable-design approval, the project must obtain LEED certification at the Certified level or better and comply with ASHRAE 90.1-2007. These standards apply only where sustainable-design requirements are authorized to apply to the project; the rule provides no data-center-specific waiver from these criteria. LEED certification at the certified level standards apply only when authorized
Sustainable-design approval requires an application to the building code commissioner, and construction plans must first be approved under the applicable state or local building code. Review fees are $100 for projects otherwise subject to the state building code, $250 for projects under local code, and—if the project is not otherwise subject to a building code—the standard plan-review fee plus $100. These requirements apply when sustainable-design approval is sought. plans must be approved review fees
Benefits & exceptionsHide benefits & exceptions1
Data center and web-portal construction has a specified route to sustainable-design approval, which can help satisfy the sustainable-design condition for a tax refund under separate law. The project must receive LEED certification at the Certified level or better and comply with ASHRAE 90.1-2007; approval does not itself guarantee a refund. (LEED certification at the certified level)
Sources
Exempts qualifying data center equipment and related systems—but not land or buildings—from property tax if the business meets state requirements.Iowa — Data-center and web-search-portal property-tax exemptions (Code §427.1(35)–(37); IAC 701—110.26)
What this means
The measure makes incentives available to leased data centers, including a property-tax exemption on qualifying equipment, which can lower the cost of building and expanding leased facilities. But it adds registration and reporting requirements and ends the electricity and backup-fuel sales-tax exemption after 10 or 15 years, so the benefits are meaningful but conditional and limited in duration for the sales-tax exemption.
People behind it
- Committee on Ways and Means
Listed as the committee introducing House File 976.
- Dawson
Listed as a floor manager for House File 976.
- Bloomingdale
Listed as a floor manager for House File 976.
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- Iowa Department of Revenue
The measure concerns administration of tax provisions by the Department; the fiscal note also identifies the Department as a source of estimates and information.
Restrictions & requirementsHide restrictions & requirements2
The sales and use tax exemption for backup-power fuel and electricity expires 10 years after qualifying new construction in a city with more than 30,000 residents, or 15 years after qualifying new construction elsewhere.
Businesses must register with and file a report with the Iowa Department of Revenue before receiving the applicable exemption.
Benefits & exceptionsHide benefits & exceptions2
HF 976 extends the property-tax exemption to qualifying data center businesses that lease a data center; the exemption covers qualifying computers, equipment, and related operating infrastructure, but not land, buildings, or improvements. The business must meet Iowa Code section 423.3(95) requirements. The exemption applies when the initial lease term begins.
HF 976 lets a data center business leasing a facility qualify for the sales-and-use-tax exemption or refund for backup-power fuel, electricity, computers, and equipment. Eligible businesses must register and file a report with the Department of Revenue before receiving the benefit. A data center business that leases a data center may qualify.
Sources
Changes Iowa’s data-center tax incentives by setting time limits on some electricity and backup-fuel tax exemptions for new projects, requiring annual registration and reporting, and clarifying eligibility for leased facilities.Iowa — Tiered data-center sales and use tax refunds (Code §423.4(7)–(8); IAC 701—215.13)
What this means
The measure keeps substantial tax breaks and refunds for qualifying data centers, including relief on equipment, electricity, and backup fuel, and makes leased facilities eligible. But new or expanded sites face time limits on energy exemptions and annual reporting, so the benefits come with meaningful conditions (energy exemption time limits; annual report requirement).
People behind it
- Committee on Ways and Means
Identified as the committee by which House File 976 was introduced.
- Iowa Department of Revenue
Administers the tax provisions addressed by the measure.
Restrictions & requirementsHide restrictions & requirements1
The measure ties the investment deadlines for certain partial-refund programs to the start of site preparation or, where applicable, the initial lease term: within three years for the smaller-investment program, and within six years for the larger-investment program. The larger program specifies minimum investments of $10 million for new construction or $5 million for rehabilitation. within the first three years
Benefits & exceptionsHide benefits & exceptions5
Eligible data center businesses making at least $200 million in Iowa investment within six years may claim the sales and use tax exemption for qualifying computers and equipment, backup-power fuel, and electricity, subject to the statute’s other requirements. The investment period runs from the start of site preparation or, for a leased data center, the initial lease term; failure to meet at least 80% of the investment requirement results in loss of the exemption and repayment of tax, penalties, and interest. The minimum-investment and repayment conditions
For the data center exemption, backup-power fuel and electricity connected to property where the data center began operating before June 6, 2025, remain exempt without a duration limit. For qualifying new construction or additions completed on or after that date, the exemption lasts ten years if the property is entirely or partly in a city with more than 30,000 residents, or 15 years otherwise. The exemption duration rules
A data center business that leases space to operate a data center may qualify for the exemption. The measure also expressly includes leased facilities in the definition of a data center and uses the initial lease term as a relevant investment-period starting point. A lessee is eligible to qualify
The measure adjusts the investment timing for two partial-refund programs: the smaller-investment program requires investment within three years, and the larger-investment program within six years, measured from site preparation or the initial lease term, as applicable. The smaller program refunds 50% of qualifying tax on fuel and electricity for up to five years, subject to investment limits; the larger program refunds 50% on listed qualifying items for seven or ten years, subject to investment, facility-size, lease, and other requirements. The revised investment timing for refunds
Sales and use tax revenues attributable to the expiration of the specified data-center and web-search-portal exemptions are transferred to Iowa’s energy infrastructure revolving loan fund. Transfer to the energy infrastructure revolving loan fund
Sources
Limits and expands data-center tax incentives by allowing qualifying leased facilities to claim them, requiring registration and annual reporting for the main exemption, and ending electricity and backup-fuel tax exemptions after 10 years in larger cities or 15 years elsewhere for new construction or additions.Iowa — 2025 HF 976 Division XII / Acts chapter 148 data-center tax amendments
What this means
The measure is a net positive: it lets businesses leasing data-center space qualify for incentives, including the sales-tax exemption and expanded property-tax relief. But it limits the electricity and backup-fuel exemption for new construction to 10 or 15 years, and adds annual reporting, so the benefits are meaningful but not unlimited.
People behind it
- Committee on Ways and Means
Introduced HF 976.
- Dawson
Listed as a floor manager for HF 976.
- Bloomingdale
Listed as a floor manager for HF 976.
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- Iowa Department of Revenue
Administers the tax provisions addressed by the measure.
Restrictions & requirementsHide restrictions & requirements3
For data centers operating in connection with new construction or additions completed on or after June 6, 2025, the sales and use tax exemption for backup-power fuel and electricity is limited to 10 years if the property is entirely or partly in a city with more than 30,000 people, and 15 years otherwise. The exemption remains unlimited for property where the business began operating before that date. The exemption duration is limited
A data center business must register with the Department of Revenue and file an annual report by January 31 each year to maintain registration for the exemption. The report must describe qualifying backup-power fuel and electricity purchases and provide other information the Department requires. The business shall register
To qualify for the large data-center exemption, a business must invest at least $200 million at an Iowa location within six years, measured from the start of site-preparation activities or the initial lease term, as applicable. If it fails to meet 80% of that minimum within the period, it loses the exemption and must pay the sales or use tax that would have been due, plus applicable penalties and interest. Failure to meet eighty percent
Benefits & exceptionsHide benefits & exceptions5
The measure limits, but retains, the sales and use tax exemption for qualifying data-center computers, equipment, backup power fuel, and electricity. The exemption for computers and other qualifying property is permanent; fuel and electricity remain exempt without a time limit for property operating before June 6, 2025, and for up to 10 years in cities over 30,000 or 15 years elsewhere for qualifying new construction or additions on or after that date. The exemption’s duration varies
A data-center business that leases space to operate a data center may qualify for the large-investment exemption. The $200 million minimum investment must be met within six years, measured from the start of site preparation or the initial lease term, as applicable; the facility must also meet other requirements, including the 5,000-square-foot minimum and sustainable-design standards. A data center business leasing space
The measure accommodates leased facilities under the partial sales and use tax refund programs by using the initial lease term as a possible start date for the investment period and, for the larger-investment refund, counting the value of a lease agreement toward the minimum investment. The refunds remain subject to their applicable investment thresholds and other conditions. the value of a lease agreement
Leased data centers may qualify for the property-tax exemption under Iowa Code section 427.1(37); the amendment makes the exemption applicable when the data center’s initial lease term begins. the date of the initial lease term
After the specified fuel-and-electricity exemption periods expire, the sales and use tax revenue attributable to that expiration is directed to Iowa’s Energy Infrastructure Revolving Loan Fund, which finances energy infrastructure projects, including electric-grid modernization. transferred to the energy infrastructure revolving loan fund
Sources
Prohibits data center businesses from receiving incentives under Iowa’s Business Incentives for Growth program.Iowa — BIG program data-center exclusion (Iowa Code §15.504; IAC 261—69.2)
What this means
The measure bars data center businesses from a new state incentive program, so they lose a possible financial benefit, but it does not add rules that restrict building or operating data centers. The exclusion is explicit in the program eligibility rules, making the overall effect a minor disadvantage.
People behind it
- Committee on Ways and Means
Identified as the committee introducing Senate File 657.
- Iowa Economic Development Authority
Administers the Business Incentives for Growth Program and other economic development programs established or addressed by the measure.
- Iowa Department of Revenue
Administers tax-related provisions, including processing and auditing refund and tax-credit claims.
Restrictions & requirementsHide restrictions & requirements1
Data center businesses are ineligible for the Business Incentives for Growth Program, so they cannot receive its tax incentives. This is a program eligibility restriction, not a general ban on building or operating data centers. shall not be a data center business
Sources
Prohibits data center businesses from receiving tax incentives through Iowa’s Major Economic Growth Attraction Program.Iowa — MEGA Program Data-Center Exclusion (Iowa Code §15.492; IAC 261—67.2)
What this means
Data centers are excluded from the MEGA program’s tax incentives, so they cannot use this particular incentive for major projects. The sources do not impose a general ban or new requirements on building, expanding, or operating data centers, making the overall effect a minor disadvantage rather than a substantial barrier.
Timing
- Ends
- When authorization has been granted to two eligible businesses or on 2027-01-01, whichever occurs first.
The board may not authorize program incentives or an agricultural-land exemption beyond that limit; the statute states no extension condition. The board shall not authorize
People behind it
- Iowa General Assembly
Enacted the measure as Senate File 574.
- Economic Development Authority
Administers the Major Economic Growth Attraction Program and adopts rules to implement it.
- Board
Authorizes program tax incentives and agricultural-land exemptions, subject to the statutory restrictions.
Restrictions & requirementsHide restrictions & requirements1
Data center businesses are ineligible for tax incentives under the MEGA Program; this is not a prohibition on building or operating a data center. The business shall not be a data center business.
Sources
Requires Iowa data centers to report water and energy use quarterly and have a separate electricity tariff designed to assign their service costs to them and protect other customers.Iowa — HF 2690 / HF 2447 Data Center Water and Energy Reporting and Electricity Tariffs (2026)
What this means
If enacted, the bill would require data centers to report water and energy use every quarter and give 60 days’ notice of certain major changes, adding ongoing paperwork and some limits on operational flexibility (quarterly reports and advance notice). It would also require separate electricity rates for data centers, but unlike the earlier version, it does not bar construction or expansion until a utility files a data-center tariff (separate tariff schedule).
People behind it
- Golding
Introduced HF2447, the predecessor bill to HF2690 (HF2447 was introduced by Golding).
- Committee on Commerce
Introduced HF2690 as the successor to HF2447 (HF2690 by Committee on Commerce).
- Lawler
Listed as HF2690’s floor manager (Floor Managers: Lawler).
Restrictions & requirementsHide restrictions & requirements1
Requires a distinct electric-service classification and tariff schedule for data centers. The tariff must allocate or directly assign service costs to data centers and mitigate unwarranted cost-shifting to other customer classes; in reviewing a proposed tariff, the Utilities Commission considers risks to other customers, grid benefits, and other public-interest conditions. Separate and distinct
Benefits & exceptionsHide benefits & exceptions1
The utilities commission must establish a separate electricity-service classification and tariff schedule for data centers. The tariff must allocate or directly assign service costs to data centers and address risks to other customer classes; a data center may not be constructed or expanded until the responsible utility has filed the required tariff.
Sources
Would require data center businesses claiming certain sales-tax exemptions or refunds to invest 5% of their prior-year benefits in qualifying businesses or innovation funds, or lose eligibility and repay those benefits; the bill was introduced, not enacted.Iowa — HF 2688 / HSB 727 data-center tax-benefit reinvestment condition (2026 proposal)
What this means
The proposed bill would require data centers using specified tax breaks to invest 5% of the prior year’s tax benefits in a qualifying business or innovation fund (“invest a minimum of five percent”). That is a meaningful added financial obligation: missing it could also mean losing the tax break and repaying benefits claimed for that year (“shall repay the aggregate amount”).
People behind it
- Committee on Economic Growth and Technology
Introduced HSB 727, the predecessor measure that was renumbered as HF 2688.
- Iowa Economic Development Authority
Must verify the required investments, notify the Department of Revenue of noncompliance, and may adopt rules to administer the measure.
- Iowa Department of Revenue
Must provide annual exemption and refund totals and cancel a data center business’s registration if notified of noncompliance.
Restrictions & requirementsHide restrictions & requirements3
A data center claiming the specified sales-tax exemption or sales-and-use-tax refunds must, by the end of each calendar year, invest at least 5% of the aggregate exemptions and refunds claimed for the immediately preceding year as equity in either a qualifying business or an innovation fund. The minimum investment is five percent.
If the required investment is not made, the Economic Development Authority must notify the Department of Revenue, which must cancel the business’s registration; the business then becomes ineligible for the specified sales-tax exemption. It must also repay the aggregate exemptions and refunds claimed for the year in which it failed to invest. Failure to make the required investment.
Annual reports must include additional information: beginning with reports due on or after January 31, 2027, they must state the previous year’s aggregate sales price of exempt property purchases and the amount of sales-and-use-tax refunds. Beginning with the annual report due on or after January 31, 2027.
Sources
Would require Iowa to publicly disclose data center businesses’ estimated tax savings, tax refunds, and other tax incentives they receive.Iowa — HF 2198 data-center and web-search-portal tax-incentive public disclosure (2026)
What this means
The proposal would make data-center tax savings, refunds, and incentive awards public, but it does not change who qualifies for incentives or set new rules for building or operating data centers (business names and estimated tax savings would become public). This transparency and reporting change is unlikely to meaningfully affect development or operations.
People behind it
- Adam Zabner
DemocraticIntroduced HF 2198.
- Grassley
Named as a sponsor of HCR 104, the adjournment resolution.
- B. Meyer
Named as a sponsor of HCR 104, the adjournment resolution.
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- Iowa Department of Revenue
Would receive annual reports, estimate tax savings, and make specified business names and estimates public.
- Economic Development Authority
Would post and maintain a searchable public database of specified tax incentives.
Restrictions & requirementsHide restrictions & requirements1
For data center businesses receiving the specified sales and use tax exemptions, annual reports due on or after January 31, 2027, would have to include the aggregate sales price of exempt property purchased. The Department of Revenue would estimate the tax saved from reported amounts, and the business name and estimate would be public. The annual report shall also contain the aggregate sales price amount of exempt property purchased.
Sources
Proposes requiring new and expanding data centers to use water-efficient cooling, submit water-use plans and reports, and face penalties for noncompliance.Iowa — HF 2001 Data-Center Cooling Water Efficiency Requirements (2026 proposal)
What this means
As proposed, HF 2001 would require new data centers and certain expansions to meet a strict water-use limit, submit plans and reports, and risk penalties or permit suspension for violations (water usage effectiveness rating of two-tenths; civil penalty of up to ten thousand dollars per day). These requirements could add meaningful costs and delays, though nonpotable water is encouraged rather than required and temporary exemptions are allowed, so the measure is a hurdle rather than a ban.
People behind it
- Jason Gearhart
RepublicanIdentified as the bill’s sponsor (“By Gearhart”).
- Iowa Department of Natural Resources
Assigned responsibility for administering the measure, including adopting rules for monitoring and enforcement (“The department shall adopt rules”).
Restrictions & requirementsHide restrictions & requirements6
The bill covers data centers defined as facilities whose computer systems and associated components consume at least one megawatt of electricity annually. Covered new centers applying for a building permit on or after January 1, 2026, and centers already permitted but not yet under construction on that date, must use cooling technology with a water-usage-effectiveness rating of 0.2 liters per kilowatt-hour or lower. The bill applies this requirement retroactively to January 1, 2026. New data centers must use water-efficient cooling technology
An expansion or renovation undertaken on or after January 1, 2026, must bring the entire existing facility into compliance with a water-usage-effectiveness rating of 0.2 liters per kilowatt-hour. The entire facility must meet the rating
Covered facilities must submit a cooling and water-sourcing plan to the Department of Natural Resources before construction, expansion, or renovation, and annual compliance reports for five years after commissioning or the expansion or renovation. Submit a plan and annual compliance reports
Data centers using treated wastewater must coordinate with local utilities to ensure the water is used before discharge, and must ensure thermal and chemical discharges meet applicable environmental standards. Coordinate with local utilities and meet discharge standards
The Department of Natural Resources may inspect and audit facilities, require water-use and sourcing documentation, and review treatment and cooling operations. Violations may lead to corrective-action orders, civil penalties of up to $10,000 per day, or suspension or revocation of construction or operating permits. Enforcement and penalties
The department may grant a temporary exemption of no more than 12 months for demonstrated lack of feasible technology or water-source access, or conditions posing a public-health or safety risk. Requests must include technical documentation and a proposed path to compliance. Temporary exemptions
Benefits & exceptionsHide benefits & exceptions4
The Department may grant a temporary exemption of up to 12 months to a new data center or one undergoing expansion or renovation if feasible cooling technology or water sources are unavailable, or conditions pose a public-health or safety risk. The request must include technical documentation and a proposed path to compliance. Temporary exemptions
The bill encourages data centers to use air-based or hybrid cooling systems. Air-based or hybrid cooling systems
The bill encourages data centers to source cooling water from nonpotable supplies, including surface or river water, storm water, graywater, recycled sources, and treated wastewater. Data centers using treated wastewater must coordinate with local utilities to use it before discharge and comply with applicable standards for thermal and chemical discharge. Nonpotable water sources
The bill encourages data centers to install on-site or off-site treatment systems to bring nonpotable water to the quality needed for cooling. On-site or off-site water treatment systems
Sources
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