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 measure comes as communities challenge new data center projects over water consumption, electricity costs, noise and environmental pollution. Lawrence Berkeley National Laboratory estimates server warehouses used 66 billion liters of water in 2023. AI companies and developers say those concerns are overstated and cite newer cooling technologies designed to reduce water reliance. Commerce Secretary Howard Lutnick called criticism of data center water use "propaganda by our adversaries," while Republican lawmakers, including Rep. Gary Palmer (R-Ala.), have emphasized the industry's investment and job benefits but said those gains should not increase water rates for families and small businesses. The issue is emerging as a concern ahead of the upcoming midterm elections.