Microsoft Backs Bill to Block Data Center Water Costs Passed On to Consumers

Microsoft is backing legislation to prevent data centers from passing on water usage costs to consumers. The Water Cost Accountability Act would bar public water systems from recovering costs associated with connecting data centers from anyone other than their developers or owners.

The bill aims to address concerns over the environmental impact of data center growth, particularly in areas where these facilities rely heavily on water for cooling. According to Lawrence Berkeley National Laboratory, server warehouses used about 66 billion liters of water in 2023.

AI companies and data centers have argued that concerns over water usage are exaggerated, pointing to technologies that can reduce their reliance on water for cooling in newer construction. However, local communities continue to push back against new data center projects due to concerns about water usage, electricity costs, noise, and environmental pollution.