Lawmakers advance historic bill that could reshape how data centers operate nationwide: 'Looking at it in a way that would protect our resources'
With the rapid rise of artificial intelligence and large language models like ChatGPT, data centers are popping up across the country to power our increasingly digital lives. But these centers require enormous resources to operate, especially electricity and water.
A new Minnesota bill could become the national standard for holding tech giants accountable.
The proposed legislation would set a new precedent for how data centers powering our digital world can operate sustainably. Facilities would need to report their energy use and water withdrawals publicly, pay conservation fees, and source at least 65% of their energy from carbon-free sources, according to Government Technology.
That's a big shift. Data centers use billions of gallons of water for cooling and consume vast amounts of electricity.
NPR has reported that the average data center uses 300,000 gallons of water a day, with larger centers around 1 million. With 11 large-scale centers proposed across Minnesota — and only one currently under construction — concerns are rising about whether the state's grid and water supply can support them sustainably.
Critically, those centers cumulatively could demand more electricity than all Minnesota households combined, according to Government Technology. That has sparked debate over how the state will balance development with its 2040 goal of achieving carbon-free energy.
Rep. Patty Acomb, the top Democrat on the House Energy Committee and sponsor of the bill, said the objective is to ensure responsible growth. "I just wanted to make sure we were looking at it in a way that would protect our resources, protect utility ratepayers, and allow it to be a thriving industry," she told the Star Tribune.
Environmental groups have applauded the effort, while the Minnesota Chamber of Commerce and the Data Center Coalition oppose the bill.
If passed, this legislation could mark a turning point in how high-tech industries manage natural resources, benefiting local communities and helping protect Minnesota's environment for generations to come.
To combat excess water and energy usage associated with data centers elsewhere, some companies and researchers are looking for alternatives.
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Microsoft is working on a way to eliminate the need for water during chip-level cooling. Meanwhile, researchers at the University of Missouri have devised a new cooling system to control temperatures and make data centers more energy-efficient.
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