Utah now requires large new data centers to publicly report annual water use, aiming to increase transparency as water demand grows. The law, signed in March, is already influencing similar efforts in other states.
Utah has become the first state in the nation to require large new data centers to report their annual water usage, following the passage of a new law signed by Governor Spencer Cox in March 2026. The legislation, which applies to data centers over 10,000 square feet that use at least 75 acre-feet of water per year, mandates that operators disclose details about their water sources, intended uses, conservation measures, and water quality to the Utah Division of Water Resources. While individual data center information will be anonymized, the state will aggregate and release total usage figures to the public.
The new reporting requirements come as data centers face growing scrutiny over their impact on local water and electricity supplies, particularly in regions already experiencing water stress. In Utah, the issue has drawn attention amid controversy over the Stratos Project in Box Elder County, which has sparked public debate and legal challenges regarding its potential water consumption. In response to these concerns, Governor Cox also issued an executive order in May establishing stricter standards for data center development in the state.
Research Exposed Gaps in Data Center Water Transparency
The push for greater transparency began with research conducted by three fellows at the Aspen Institute's Aspen Policy Academy. Their project, completed as part of the 2024 Science and Technology Policy Fellowship, examined the rapid growth of data centers in Utah at a time when the Great Salt Lake reached record low levels. The researchers found that little public information was available about how much water data centers actually consume, prompting them to file open records requests for 21 facilities in the Salt Lake City area. Only seven centers responded, and the data provided varied widely in detail and usefulness.
Based on their findings, the fellows recommended that Utah create a statewide database of data center water usage and set efficiency targets using Water Usage Effectiveness—a ratio comparing water use to energy consumption. They argued that requiring disclosure and efficiency standards would encourage operators to adopt more water-efficient cooling technologies, which are already available in the industry.
Their policy brief gained traction after being featured on a podcast and catching the attention of Stewardship Utah, an environmental nonprofit. Lawmakers then introduced the proposal in the Utah Legislature, where it received bipartisan support and was ultimately passed, though with some requirements scaled back from earlier drafts. State Representative Jill Koford, who sponsored the bill, said the goal is to provide both local water providers and the public with a clearer understanding of how water is being used by these large facilities.
Utah's Approach Could Become a Model for Other States
The law's influence is already being seen beyond Utah. Nebraska has adopted similar legislation, and other states are considering comparable measures. Recent research from the Getches-Wilkinson Center for Natural Resources, Energy and the Environment at the University of Colorado Law School indicates that more states are exploring reporting and conservation requirements, as well as financial incentives, to address rising water demand from data centers. The Information Technology and Innovation Foundation has also noted that transparency requirements are more effective than outright moratoriums, which have been implemented in places like New York and Texas.
For data center operators, the new requirements may offer an opportunity to demonstrate responsible water stewardship to both regulators and the public. According to a recent Gallup survey, 71% of Americans oppose building data centers in their area, often due to uncertainty about their impact on local resources. Utah officials believe that increased transparency can help address these concerns and support more informed decision-making as the industry continues to expand.
Utah's law is expected to serve as a model for other states seeking to balance economic development with the need to protect limited water supplies. The reporting system will allow state agencies and local water providers to monitor trends, identify potential risks, and encourage the adoption of best practices in water conservation across the data center industry.
