Iowa House Bill HF2690

Iowa 2025-2026 Regular Session

• Introduced: 2/23/26

Caption

A bill for an act relating to water and energy use for data centers, including reporting and tariff requirements, and including effective date provisions.(Formerly HF 2447.)

Impact

The bill requires the Iowa utilities commission to create distinct tariff classifications for data centers, which will ensure that the costs assigned are proportional to the actual service costs. This aims to prevent shifts of financial burdens onto other consumer classes while also incentivizing efficiency in energy usage. Furthermore, the commission must consider potential risks to consumers and ensure equitable contributions to grid efficiency and reliability when approving new tariff schedules for data centers.

Summary

House File 2690 addresses the management of water and energy usage by data centers in Iowa. It mandates that data center owners or operators provide initial and ongoing reports regarding both water and energy consumption. Specifically, centers operational for less than one year must submit their first water usage report within six months of the bill's enactment, while those operating for longer must do so within three months. Following these initial reports, they are required to file quarterly updates. These reports will include crucial data such as the sources of water and energy, total inputs, and measures of effectiveness in conservation.

Contention

While supporters argue that HF2690 will promote sustainability and responsible consumption in a growing industry, critics might see it as an additional regulatory burden that could hinder data center expansion in the state. There may also be concerns regarding the capacity of the current water and energy infrastructure to support potential increases in data center operations, which could lead to further scrutiny over environmental implications.