Iowa House Bill HF2001

Iowa 2025-2026 Regular Session

• Introduced: 1/13/26
• Refer: 1/13/26

Caption

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.

Impact

The enactment of HF2001 is expected to have significant implications on state laws relating to environmental protection and resource management. By establishing stringent requirements for data centers, the bill seeks to conserve valuable freshwater resources in Iowa. The bill encourages the use of alternative cooling methods, including air-based or hybrid systems, and mandates data centers to develop water sourcing and cooling plans to be submitted to the Department of Natural Resources (DNR). Furthermore, the legislation provides guidelines for annual compliance reporting, enhancing accountability for data centers covered under this law.

Summary

House File 2001 (HF2001) is a legislative proposal aimed at increasing water efficiency in data centers through mandated requirements for cooling technologies and the promotion of nonpotable and recycled water sources. The bill stipulates that all new data centers, as well as any undergoing expansion or renovation after January 1, 2026, must utilize water-efficient cooling systems that achieve a specific water usage effectiveness rating. This rating serves as a metric to assess the efficiency of water consumption in relation to energy usage, with a target of 0.2 liters per kilowatt hour or lower.

Contention

Despite its environmental intent, HF2001 has sparked debate among stakeholders. Proponents argue that the bill addresses urgent water conservation needs and promotes sustainable practices in the tech industry. Conversely, critics express concerns regarding the operational burdens it places on data centers, especially small and mid-sized operations that may find compliance challenging due to the costs associated with upgrading infrastructure. Additionally, the imposition of civil penalties for noncompliance could deter investment in the data center sector, raising questions about the balance between environmental standards and economic growth.

Exemptions

The bill does include provisions for temporary exemptions for data centers that can demonstrate a lack of feasible technology or access to water sources, as well as concerns related to public health and safety. These exemptions, however, are limited to a duration of no longer than 12 months and must be accompanied by a documented compliance plan. This aspect introduces flexibility into the legislative framework, aiming to accommodate varying operational capabilities of data centers while still promoting adherence to the overarching goals of water conservation.