This bill establishes new limitations on the consumptive use of water by data centers in Idaho. It introduces a new section, 42-252, to Chapter 2, Title 42 of the Idaho Code, which stipulates that data centers commencing construction on or after July 1, 2026, are prohibited from using water for cooling purposes unless it is sourced from a municipal, water district, or water and sewer district water system. The legislation emphasizes the significant water requirements of data centers and their potential conflicts with local public interests, conservation efforts, and the local economy.

Additionally, the bill outlines legislative findings that highlight the adverse effects of data centers on water resources and local economies. It mandates that the director of the Department of Water Resources must consider these findings when evaluating new water appropriations or transfers for data centers. The bill declares an emergency, making it effective immediately on July 1, 2026.