IA HF2001

New data centers applying for building permits on or after January 1, 2026, and those permitted but not yet under construction must use water-efficient cooling technology achieving a water usage effectiveness rating of 0.2 liters per kilowatt hour or lower.

Expansions or renovations of existing data centers after January 1, 2026, must bring the entire facility into compliance with the same water usage effectiveness standard.

Data centers are encouraged to use air-based or hybrid cooling systems and source water from nonpotable supplies including surface water, stormwater, graywater, and treated wastewater.

Facilities must submit cooling and water sourcing plans to the Department of Natural Resources before construction or expansion, plus annual compliance reports for five years following commissioning.

Violations may result in civil penalties up to $10,000 per day of noncompliance, corrective action orders, or suspension/revocation of construction or operating permits; temporary exemptions of up to 12 months may be granted.