Require Data Centers to Pay for All Upfront Infrastructure Costs Related to Their Water Usage

While certain jurisdictions may have the necessary water infrastructure in place to service large-quantity water customers such as data centers, other jurisdictions may need to extend water and sewer infrastructure to serve new customers. Public utilities often pass these costs onto ratepayers, which can lead to higher water bills. This is particularly relevant for rural communities, where existing water infrastructure may be lacking. 

Cities must demand that each data center pay 100 percent of estimated public infrastructure costs related to its water usage, with a particular focus on infrastructure upgrades needed to support the data center. This can be done through an annual Infrastructure Impact Fee deposited into a restricted fund used for local water infrastructure, conservation, and drought resilience projects.¹

1. Thanks to the Southeast Climate and Energy Network for crafting this policy recommendation. ↩︎