Covered data centers starting operations on or after July 1, 2026, must report water plans before construction and yearly water use unless a reporting exception applies.
Data centers opening on or after July 1, 2026, that meet water-use, size, and ownership requirements must report water plans before construction. Local officials must notify water agencies before land-use approval.
After opening, covered data centers must report yearly water use and water-saving efforts. This duty does not apply when the state engineer requires water reports by rule under another law.
The Division of Water Rights must publish each reporting center's water withdrawals separately. Certain business details stay confidential when protection requirements are met, with combined results published without identifying operators.
Operators that fail to submit complete required reports after receiving notice face fines of up to $100 for each day they remain out of compliance.
Operators must report water plans to the Division of Water Rights and notify the area's water provider before construction. Coverage requires operations to begin on or after July 1, 2026, yearly water withdrawals of at least 75 acre-feet, and buildings totaling at least 10,000 square feet. An acre-foot measures enough water to cover one acre one foot deep. Covered centers primarily store, manage, and share computer data. They include cooling, security, and environmental systems or operator-run power generation. The buildings and land must be owned or leased by the operator or someone under common ownership. Operators must report location, estimated yearly water withdrawals, and plans for wastewater treatment, discharge temperature changes, and water reuse or replacement. Before approving land use, local officials must notify the Division of Water Rights, the Division of Water Quality, and the relevant water provider, if any. The law took effect May 6, 2026. Starting July 1, 2026, operators must give notice and report at least 90 days, but no more than 360 days, before construction.
Operators must send yearly water-use reports to the Division of Water Rights. This duty covers centers starting operations on or after July 1, 2026, that meet the law's water-use, building-size, facility, and ownership requirements. Reports cover actual water withdrawals, water-saving efforts, pollution safeguards when applicable, and other information required by agency rules. The yearly duty does not apply if the state engineer requires water reports by rule under another law, even if those reports omit information required here. Starting July 1, 2026, reports are due by July 1 each year for the previous calendar year after the center begins operating.
The Division of Water Rights must publish each reporting center's water withdrawals separately. These rules cover water reports for centers starting operations on or after July 1, 2026, that meet the law's coverage requirements. Treatment, discharge temperature, reuse, conservation, and pollution-protection information stays confidential if the operator meets the law's requirements for protecting business information. Other information required by agency rules receives this protection only if the agency provides for it when requiring the information. The agency must publish combined data from protected information by county without identifying operators and send it to affected local governments. The agency must share information that is not protected business information with the Division of Water Quality and the relevant water provider, if any. Water withdrawal data for the previous calendar year must be published by September 1. Combined data from protected information must also be disclosed annually by September 1.
The Division of Water Rights must fine operators that still fail to provide complete required reports after receiving notice. Penalties apply to operators that owe a preconstruction or yearly report under these requirements. The agency must first notify the operator that a required report is missing or incomplete. Collected fines go into the state's General Fund. Daily fines apply if an operator continues failing to submit a complete report after receiving notice.
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