Ohio Legislators Propose Bill to Curb Data Centers’ Water Consumption
COLUMBUS, Ohio — A new bill introduced in the Ohio Senate aims to tackle the growing environmental impact of data centers by imposing stricter regulations on their water usage. The proposed legislation, known as the Responsible Water Use by Data Centers Act (Senate Bill 378), seeks to ensure that these facilities bear the full cost of their infrastructure needs and adhere to limits on water consumption.
Introduced on March 16 by Democratic Senators Willis Blackshear Jr. of Dayton and Casey Weinstein of Hudson, with co-sponsorship from Senator Kent Smith of Euclid, the bill addresses concerns over the resource-intensive nature of data centers. These facilities, which support everything from cloud computing to artificial intelligence, are known for consuming vast amounts of water for cooling systems and requiring significant upgrades to local infrastructure.
Under the proposed law, data centers would be required to cover all costs associated with water and sewer system upgrades necessitated by their operations. This provision aims to shield other ratepayers from bearing the financial burden of these improvements. Additionally, data centers would need to obtain permits from the Ohio Division of Water Resources to withdraw water for consumptive use—defined as water that is lost to the basin from which it is withdrawn through processes like evaporation or incorporation into products.
The bill sets a strict cap on water withdrawals, prohibiting data centers from consuming more than an average of five million gallons per day over any 30-day period. Violations could result in permit suspension or revocation, underscoring the state’s commitment to protecting its water resources.
“This legislation is about accountability,” said Senator Blackshear. “Data centers are vital to our economy, but they must operate responsibly and not jeopardize our water supply or burden our communities.”
The bill comes amid increasing scrutiny of data centers’ environmental footprint in Ohio. The state is home to approximately 200 data centers, with the majority concentrated in central Ohio. According to the Office of the Ohio Consumers’ Counsel, hyperscale data centers—particularly those supporting AI technologies—can consume as much energy as small cities and millions of gallons of water daily.
Senate Bill 378 is part of a broader push by Ohio lawmakers to regulate the industry. Earlier this year, House Bill 706 was introduced to prevent data centers from passing infrastructure costs onto existing utility customers. That bill is currently under review by the House Energy Committee.
Last month, Senate Democrats held a press conference calling for bipartisan collaboration on data center regulation. They outlined a series of proposed measures, including the Responsible Water Use in Data Centers Act, aimed at balancing the industry’s economic benefits with its environmental and societal impacts.
Proponents of the bill argue that while data centers contribute significantly to Ohio’s economy—supporting tens of thousands of jobs and adding billions in economic output—their rapid growth must be managed sustainably.
“We cannot ignore the strain these facilities place on our resources,” said Senator Weinstein. “This bill ensures that Ohio remains a leader in technology while protecting our environment for future generations.”
Opponents, however, warn that overly stringent regulations could deter investment in the state. Industry representatives argue that data centers are already adopting more efficient technologies and working to reduce their environmental impact.
As Senate Bill 378 moves through the legislative process, stakeholders on both sides are gearing up for a contentious debate. With water scarcity becoming an increasingly pressing issue nationwide, Ohio’s approach to regulating data centers could serve as a model—or cautionary tale—for other states grappling with similar challenges.
For now, lawmakers are focused on striking a balance between fostering economic growth and safeguarding vital resources. The outcome of this legislative effort could reshape the future of Ohio’s tech industry—and its environment.
— Reported by Nexio News
