Lawmakers advance bill to give state additional oversight of new data center water use

It's one of several efforts to create more oversight of the rapidly-growing sector powering the nation's artificial intelligence boom.

By:Ian Karbal-March 23, 20264:29 pm

State lawmakers advanced a bill Monday that would require data center developers to submit reports on expected water use to the commonwealth before beginning operation.

It's one of several efforts to create more oversight of the rapidly-growing sector powering the nation's artificial intelligence boom.

The reports would include information like how much water the data centers plan to use, where that water will come from, and what temperature the water will be when it's taken into the facility and returned to its source. Developers would also need to provide evidence the operation won't have a foreseeable adverse impact on water quality and quantity.

Data centers can use large amounts of water primarily for cooling servers and other equipment. Some can use millions of gallons of water per year, though it depends on the cooling method.

The state Department of Environmental Protection would be allowed to reject projects they believe will have a negative impact on state waterways and other users of that water.

"I think personally data centers are going to be an important part of our economy, and I also believe that some guardrails are required to make sure we're doing it for the best purposes of Pennsylvania and the residents of Pennsylvania who are already here," the bill's sponsor, Rep. Joe Webster (D-Montgomery) told the House Environmental & Natural Resource Protection Committee.

Committee co-chair Jack Rader (R-Monroe) opposed the measure.

"I think data centers are an issue in the state today. I personally am for local control of these issues," he said. "I think if local governments do their job, these issues should be taken care of … I don't like to see layer and layer of government."

Rep. Dallas Kephart (R-Clearfield) also voiced concern about a provision in the bill that would allow the Environmental Quality Board, primarily made up of appointees, to set a fee for data center developers. He argued that should be done by lawmakers.

"Most of them are unelected officials," he said. "Their discretion to set a fee is bad legislative practice."

The proposal notes the fee should be determined based on the cost of implementing the program, which could include monitoring of water sources around data centers. The proceeds would go to the state's Clean Water Fund

Rep. Nikki Rivera (D-Lancaster) said in the case of two data centers being developed in her district, reports would likely show they're expected to use less water than the warehouses that used to occupy the space where they're being built.

"One of the major concerns with my constituency was how much water will be used to cool the machinery," Rivera said. "A report that would show exactly how much water they're using would actually favor the data centers and make it really transparent for our residents."Two Republicans, Rep. Tom Mehaffie of Dauphin County and Brenda Pugh of Luzerne County, joined every Democrat on the committee in voting for the bill.

The measure would need to be passed by the full state House and the Republican-controlled Senate. If that happens, Gov. Josh Shapiro would have to sign it into law.

House Democrats are also pushing a separate proposal that would require data center developers and operators to submit annual reports on energy and water consumption to the state Department of Conservation and Natural Resources.

That bill received a partisan vote in the House Energy Committee earlier this month, with all 14 Democrats supporting it and all 12 Republicans opposing.

Link: Lawmakers advance bill to give state additional oversight of new data center water use

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