Wyoming Senate advances groundwater study for data centers

The Select Water Committee voted unanimously on Friday to move a $2 million groundwater survey proposal to the January legislative session. The committee did not advance a separate bill that would have capped water consumption for large data centers, citing legal concerns about the language.

The push for better data comes as the industry expands rapidly across the state. Cheyenne LEADS, a local economic development non-profit, reports that Cheyenne currently has 10 operating data centers. Seven are under construction, and eight more are in the planning phase. Two of these new facilities began construction in the last three months.

Sen. Brian Boner, R-Douglas, and Sen. Taft Love, R-Cheyenne, crafted the survey proposal. They noted that the state is effective at evaluating surface water but that groundwater assessment remains difficult. Boner described the current process for groundwater as a guessing game. The new study would expand beyond existing control areas to regions likely to see future development.

Under current law, the state engineer is required to conduct groundwater studies only in designated control areas. These areas are established in drier parts of the state where water is scarce. Boner argued that waiting for water shortages to occur before establishing a control area is too reactive for the pace of current development.

Rep. Ken Chestek, D-Albany, drafted the rejected bill that aimed to limit consumptive water use for hyperscale data centers. The proposal would have restricted cooling water usage to 0.2 liters for every kilowatt-hour of electricity consumed over a year. Chestek explained that the formula focuses on the net loss of water from the system rather than dictating specific cooling technologies.

Committee members raised concerns that the bill might treat data center developers differently than other major water users in the state. They cited the 14th Amendment and the equal protection clause, noting that mining, farming, and hospitality industries also consume large amounts of water. Chestek responded that data centers have a choice in their water use, while other industries rely on water for essential functions like crops and livestock.

Khara Boender of the Data Center Coalition told lawmakers that the industry is actively partnering with communities to build water infrastructure resilience. She noted that companies are investing in upgrades and setting water positive goals. Microsoft’s Cheyenne data center has committed to supplying the community with more water than it consumes, though this pledge is not currently backed by legal protections.

Sen. Ogden Driskill, R-Devil’s Tower, supported the groundwater study but suggested adding statewide water quality sampling. He warned that polluting an aquifer could be more dangerous than depleting it. Driskill emphasized that Wyoming water laws are based on the maximum beneficial use of water, rather than simply saving it.