Iowa lawmakers push data center transparency
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Iowa lawmakers want to know exactly how much water and energy the state's booming data center industry is consuming.
Why it matters: Iowa has become a magnet for data centers, but the infrastructure needed to power and cool these facilities puts pressure on the state's electric grid and water supply, which can get passed on to homeowners.
State of play: Iowa Rep. Cindy Golding (R-Cedar Rapids) proposed House File 2447, which creates new reporting requirements and utility rate structures for data centers operating in Iowa.
How it works: The bill requires data centers to file quarterly reports with the Iowa Department of Natural Resources detailing how much water they use, its source and how efficiently they're using it.
- They must also file quarterly energy reports with the Iowa Utilities Commission regarding power consumption, on-site generators and sustainability metrics like waste heat reuse.
- All reported information is required to be shared publicly online within 30 days.
Zoom in: The bill also requires the Iowa Utilities Commission to create a separate rate class for data centers.
- The requirement is designed to prevent grid upgrade costs and increased power usage driven by data centers from being shifted to residents, per the bill.
The big picture: Iowa has faced criticism in the past for a lack of disclosure regarding data center consumption and tax breaks offered to companies.
- Linn County is currently considering an ordinance that puts limitations on data centers, including requiring proof that there is adequate water supply, per The Gazette.
What they're saying: Golding says she proposed the bill to ensure Iowans are protected from rate hikes after hearing "horror stories" from other states.
- "I'm not opposed to economic opportunities, as long as it benefits my constituents and doesn't detract from what we cherish as Iowans, with our communities and our resources," she tells Axios.
MidAmerican Energy is reviewing the legislation, but notes its current billing process already separates individual customers from data center servicing costs, spokesperson Dan Winters tells Axios.
Jamie Cashman of the Iowa State Association of Counties says the group is in favor of the bill because it requires a water usage report.
- Cashman says they want to ensure there's plentiful safe drinking water available, especially in rural areas.
A spokesperson for Microsoft, which operates a data center campus in West Des Moines, declined to comment.
What's next: The bill survived funnel week, which ends this Friday and helps weed out bills. It is eligible for debate by the full Iowa House.