Microsoft is supporting the Water Cost Accountability Act, which would require states to prevent public water systems from recovering data-center connection costs from anyone other than the facilities’ developers or owners. The proposal follows Commerce Secretary Howard Lutnick’s Wednesday CNBC claim that data centers do not use water and his description of criticism as adversary propaganda, despite Lawrence Berkeley National Laboratory estimates that U.S. data centers directly consumed about 66 billion liters in 2023, up from 21.2 billion liters in 2014. Communities and lawmakers are also examining electricity costs, noise and pollution. Data-center operators say newer air, closed-loop and waterless cooling systems can reduce water demand. Rep. Gary Palmer said the industry’s investment and jobs benefits should not raise water rates for families and small businesses. The issue is gaining attention ahead of the upcoming midterm elections.