Iowa Data Centers - HF2690 Brings Transparency and Fairness
UPDATE: this bill failed to pass the second funnel and is not moving forward.
Across Iowa, data centers are rising from cornfields and industrial areas, enormous facilities that can stretch across hundreds or even thousands of acres. With 105 data centers already operating, including 77 in Des Moines alone, this industry is expanding faster than our public oversight. These centers rely on vast amounts of water and electricity, yet Iowans are left in the dark about how that usage affects our aquifers, our electric grid, and ultimately our monthly bills. HF2690 offers a simple solution: transparency and fair cost‑sharing so communities and ratepayers aren’t left footing the bill.
Protecting Consumers from Rising Utility Costs
Data centers are among the largest electricity users on the grid. Their demand can force utilities to build new power plants, transmission lines, and substations. Currently, these large infrastructure costs can be shifted onto everyday Iowans, but HF2690 fixes that by requiring a separate electric tariff for data centers. This ensures that data centers, not families, small businesses, or local industries, pay the full cost for the infrastructure built. The bill directs the Iowa Utilities Commission to:
Allocate costs proportional to the actual cost of serving data centers
Prevent unwarranted cost‑shifting to other customers
Consider grid reliability and public interest when approving tariffs
Water Use: A Strain on Iowa’s Aquifers
Data centers require huge quantities of water to cool their equipment, which puts a strain on our aquifers, surface water, and groundwater. Iowa’s aquifers recharge slowly, and in many counties we lack complete data on how much water remains. When a single data center draws millions of gallons, it’s a threat to long‑term water security for rural communities, farmers, and households.
HF2690 requires quarterly reporting of:
Total water usage
Water sources (municipal, groundwater, surface water)
Water usage effectiveness
Any major operational changes
This transparency gives the Iowa Department of Natural Resources the information it needs to plan for sustainable water use, and gives the public the clarity they deserve.
Energy Use Reporting
Similar to the water use reporting, HF2690 also requires quarterly reporting of energy usage, including:
Total energy consumption
On‑site power supplies and backup systems
Power usage effectiveness
Waste heat reuse
Sustainability indicators
This information must be published publicly within 30 days, giving Iowans insight into how these facilities operate and how they impact the grid.
Why HF2690 Matters & What You Can Do
HF2690 isn’t anti‑technology. It’s pro‑transparency, pro‑fairness, and pro‑Iowa. It ensures:
Data centers pay their fair share
Communities aren’t left with the bill
Water resources are protected for future generations
Electric infrastructure remains reliable and resilient
Public agencies have the data they need to plan responsibly
TAKE ACTION by calling your representative at 1-855-274-1025 and asking them to support HF2690 which would require data centers to pay their own way and report the water and electricity they use.
You can also take action by emailing your representative: https://act.sierraclub.org/actions/Iowa?actionId=AR0601811