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S 10487

Enacts the "data center water stewardship and reuse act"

2025 Regular Session Introduced by Leroy Comrie

The act requires large data centers to use non-potable/recycled water with closed-loop cooling, meet strict water-reuse standards, and report progress with penalties for non-compli

REFERRED TO ENVIRONMENTAL CONSERVATION
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Bill Summary · S 10487

Overview

Bill S 10487, introduced in the New York Senate for the 2025-2026 session, creates the Data Center Water Stewardship and Reuse Act. Its central goal is to require large-capacity data-center facilities (LCCFs) to adopt advanced water recycling, non-potable water use, closed-loop cooling, and related reporting. The act establishes standards, permitting requirements, annual reporting, financial incentives, enforcement mechanisms, and a dedicated funding stream to support compliance and innovation.

Main purpose and intent

  • Integrate data-center water-use management into New York’s environmental conservation framework.
  • Reduce dependence on potable (drinking-water-quality)水 supplies for data centers by promoting non-potable/recycled water use and advanced cooling technologies.
  • Encourage sustainability, watershed protection, and technological innovation in the data-center sector.
  • Provide incentives and technical assistance to facilitate compliance and promote improvements in water efficiency and reuse.

Key provisions and changes

Scope and definitions

  • Defines what constitutes a data-center facility and a Large-Capacity Computing Facility (LCCF):
    • LCCF criteria: aggregate electrical demand of 10 MW or more, or uses more than 5 million gallons/year of potable water, or part of a multi-facility campus meeting either threshold.
  • Establishes terms for potable water sources, non-potable recycled water, closed-loop cooling, and baseline water intake (used to measure reductions).

Applicability and phasing

  • Applies to all LCCFs in New York, including new, expanding, or existing facilities.
  • Phased compliance:
    • New construction or major expansion after Jan 1, 2028: must incorporate non-potable recycled water, closed-loop cooling, and potable water offset measures.
    • Existing LCCFs (in operation as of Jan 1, 2028):
    • By Jan 1, 2031: reduce potable water intake by at least 50% of baseline.
    • By Jan 1, 2035: reduce potable water intake by at least 75% of baseline, with exemptions possible under 35-0115.

Water-reuse and conservation standards

  • New/expanded LCCFs: at least 60% of process/cooling water intake (excluding domestic potable use) must come from non-potable sources at initial build.
  • Existing LCCFs: 40% non-potable water by 2031; 60% by 2035.
  • Facilities must design for closed-loop or hybrid cooling with minimal make-up water (less than 5% of system flow annually).
  • Public reporting of Water-Use Effectiveness (WUE): gallons of potable water per kWh IT load; benchmarking against peers.
  • Watershed considerations: facilities in water-stressed watersheds must prioritize non-evaporative cooling and prefer reclaimed water.
  • Recycled water systems must meet treatment/quality standards aligned with federal guidance (e.g., EPA Industrial Reuse Guidelines).

Permitting, review, and certification

  • DEC, NYSERDA, and PSC will develop rules for:
    • Permit review criteria (water intake estimates, reuse plans, watershed impact, energy-water trade-offs, heat reuse).
    • Certification for non-potable water treatment/reuse systems.
    • Verification, audits, and interim benchmarks.
  • No local permit may be issued without DEC certification of water-reuse/cooling plans.
  • Existing facilities: the department issues a “data center water stewardship certificate” renewed every five years.
  • Possible permit/certificate conditions include monitoring, third-party verification, adaptive remediation, and audits.

Reporting, transparency, and public disclosure

  • Annual reporting by each LCCF to the DEC on: potable water withdrawal, non-potable water use, discharges, WUE metric, cooling/system details, variances, and watershed/community engagement.
  • DEC to publish an annual aggregated “data center water stewardship report” on its website.
  • Facilities must post a summary on their own sites with a link to the DEC portal.

Incentives and technical assistance

  • Establishes a Data Center Water Efficiency Grant and Loan Program (subject to appropriation) via NYSERDA and DEC to fund:
    • Retrofit projects (upgrading cooling, on-site non-potable treatment, closed-loop infra).
    • Pilot projects for low-water cooling, immersion cooling, heat reuse, and regional reclaimed water infrastructure.
  • Expedited permitting or reduced fees for facilities that exceed minimums.
  • State support for regional water planning that includes reclaimed/non-potable water infrastructure; potential assistance for municipalities/utilities partnering with LCCFs.

Enforcement, penalties, and remedies

  • Violations can trigger:
    • Notice of violation, civil penalties up to $50,000 per day of non-compliance.
    • Suspension/revocation of water-related permit/certificate.
    • Corrective action plans and audits.
  • Loss of certificate status may remove eligibility for incentives.
  • Civil action possible to enjoin non-compliance or compel action.
  • Penalties deposited into the Data Center Water Stewardship Fund for technical assistance, research grants, and watershed restoration.

Exemptions, variances, and hardship relief

  • DEC may grant variances or exemptions for technical, geologic, hydrologic constraints, or where compliant reductions are disproportionately costly or energy-penalizing.
  • Variances must include a time-bound schedule and be publicly posted.
  • Watersheds designated as critical water-stress zones may face stricter standards.

Technical standards and regulatory updates

  • DEC to adopt non-potable water treatment standards aligned with federal reuse guidance.
  • Regular review (at least every three years) of cooling and water-reuse technologies; updates to regulations as appropriate.
  • Creation of “water-smart data center design guidelines” with benchmarking tools, case studies, and metrics.

Funding and administration

  • Section 85 of the State Finance Law creates the Data Center Water Stewardship Fund.
    • Fund to receive civil penalties and other monies.
    • Administered by DEC and the Comptroller/Tax and Finance for utilization in line with the act (technical assistance, water-reuse research grants, watershed restoration).
  • Funds are to be appropriated by the Legislature for implementation.

Timelines and effective date

  • Effective date: immediate.
  • Implementing regulations due by January 1, 2027.
  • New/expanded construction site preparation after Jan 1, 2028: mandatory in-building water-reuse, closed-loop cooling, and potable intake offsets.
  • Existing facilities:
    • By Jan 1, 2031: 50% potable water reduction.
    • By Jan 1, 2035: 60% non-potable/recycled water intake; additional exemptions possible.
  • The act specifies severability and general interpretation provisions.

Potential impact

  • Substantial shift toward non-potable/recycled water use and advanced cooling in large data centers.
  • Accelerated adoption of closed-loop or low-water cooling technologies.
  • Enhanced transparency through mandatory reporting and public disclosure.
  • Creation of a dedicated funding stream to support retrofits, pilots, and watershed projects.
  • Possible compliance costs for existing LCCFs, but with potential financial support via incentives and grants.
  • Regulatory certainty through defined timelines, certifications, and enforcement mechanisms.

Compiled from official sources — confirm details with the bill’s official record.

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