HB 895: Regulating Data Centers’ Water Usage (2026)

Summary: Addresses the significant water demands of data centers by restricting consumptive water use for cooling in new facilities unless the water is supplied by a municipal or similar public system. It also establishes legislative findings that such water use may conflict with the public interest and water conservation goals. The bill strengthens the state’s ability to evaluate and limit water use impacts from data center development.

ICL’s Position: Support

Current Bill Status: House Floor

Issue Areas: Data centers, Water

Bill Sponsors: Rep. Mike Moyle (R-District 10), Rep. Britt Raybould (R-District 34)

House Bill 895 takes a proactive approach to one of the most significant environmental impacts of data centers: water consumption. The bill establishes clear legislative findings that large-scale consumptive water use by data centers can conflict with the public interest, undermine water conservation efforts, and negatively affect local economies. It also restricts new data centers from using water consumptively for cooling unless that water is supplied by a municipal or similar public system, helping to ensure that water use is more closely managed and accounted for.

The bill is a strong and necessary step to protect Idaho’s water resources. By limiting direct withdrawals and reinforcing the authority of the Idaho Department of Water Resources to consider broader impacts, the bill helps safeguard aquifers, rivers, and existing water users, including agricultural communities and fish and wildlife. It also sends an important signal that new industrial development must align with Idaho’s long-term water sustainability.

While the bill does not require specific water efficiency technologies or conservation standards, it establishes a meaningful baseline for managing water use. Overall, House Bill 895 represents a thoughtful and effective policy response to the growing demands data centers place on Idaho’s limited water resources.