Two-thirds of new U.S. data centers planned in drought-stricken areas

The burgeoning artificial intelligence industry in the United States is increasingly concentrating its data centers in regions already grappling with severe drought, raising concerns about escalating water scarcity. An analysis reveals that approximately two-thirds of new data centers slated for construction will be situated in areas that have experienced significant dryness over the past year.

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Two-thirds of the data centers that will be built in the United States in the future will be built in the areas that were the driest in the United States last year.

This trend is particularly alarming given the intensifying climate crisis, which is exacerbating drought conditions across the U.S. The surge in data center development adds a substantial burden of energy and water demand to already strained ecosystems. While new facilities are being built in drought-prone locations, existing data centers also show a similar pattern, with about 65% of them located in drought-affected areas.

Data centers consume enormous quantities of water, primarily for cooling their servers. A large facility can use up to 5 million gallons daily, equivalent to the water needs of 50,000 people. Projections indicate that the annual water demand for U.S. data centers could skyrocket from 17 billion gallons in 2023 to as much as 73 billion gallons by 2028.

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The climate crisis caused by the burning of fossil fuels is worsening the duration and intensity of droughts in the United States, and the emergence of new data centers is adding an additional burden due to their enormous energy and water demands.

Developers often favor dry, less populated areas due to lower land costs and tax incentives. However, critics, like Tulane University water expert Christopher Dahlbom, warn that the explosive growth of data centers makes water shortages inevitable. He fears that the public, rather than the tech and energy industries, will be asked to conserve water.

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Water shortages will be inevitable with the explosive increase in data centers. We cannot assume that it will not be the general public, not the data center and energy industries, who will be asked to reduce their water consumption.

Industry representatives counter that data centers' water usage is modest compared to sectors like agriculture and golf course irrigation. They also highlight investments in water conservation and recycling projects. While some companies are adopting more efficient cooling technologies, critics point out that these can increase energy consumption, often from fossil fuels, which in turn requires more water. Furthermore, a recent study suggests that the broader AI value chain, beyond data centers themselves, will have a much larger impact on water demand, with power generation and semiconductor manufacturing being the primary drivers.

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Data center operators are working closely with authorities to ensure they do not burden local water resources. We are one of the few private sector industries actively investing in local water resource infrastructure, including water restoration and recycling projects.