Water joins energy as top AI flashpoint

Water Use Draws Scrutiny in AI Data Center Expansion

Water consumption has joined electricity demand as a point of discussion in the expansion of data centers supporting artificial intelligence systems. Major technology companies have responded in recent weeks by detailing their approaches to water management, including replenishment initiatives, use of recycled water, and shifts toward alternative cooling methods.

Google, Amazon, and Microsoft have each issued statements or launched projects addressing water requirements tied to their facilities. Nvidia stated that its newest chip designs can reduce reliance on water-intensive cooling. These actions follow increased public attention to resource demands from data centers.

Peter Gleick, co-founder of the Pacific Institute, has commented on the need for greater transparency from operators regarding energy and water use at large facilities. Similar observations have come from other water policy analysts.

A Gallup poll conducted in May found that roughly 70 percent of U.S. respondents would oppose new data centers in their local areas, with water and electricity use ranking among the primary stated concerns. The survey indicated that about half of those opposed cited resource consumption as a factor.

Discussions about data center impacts have appeared at multiple levels of government. United Nations Secretary-General António Guterres, in a June 23 speech in London, urged companies to measure and disclose carbon, water, and land footprints associated with AI systems. He also called for commitments to power operations with 100 percent renewable energy by 2030.

In Virginia, which hosts the largest concentration of data centers globally, legislators have considered attaching conditions to state grants that would limit certain water-intensive cooling practices. These proposals remain under review and have not yet resulted in new statewide restrictions.

Data centers account for a smaller share of total U.S. water withdrawals than sectors such as thermoelectric power generation, agriculture, or residential use. Estimates compiled by Cleanview from government, industry, and academic sources, including a 2024 Lawrence Berkeley National Laboratory study, place daily data center consumption well below that of cattle operations, power plants, households, golf courses, and steel production. The figures incorporate both on-site cooling and water used in electricity generation.

Sarah Porter, director of the Kyl Center for Water Policy at Arizona State University, noted that national totals can mask effects in specific watersheds. Local availability, rather than aggregate volumes, determines whether additional demand creates competition with other users, particularly in arid regions.

Cooling methods illustrate trade-offs between resources. Evaporative systems typically require less electricity than air-cooled alternatives but consume more water on site. Electricity generation itself accounts for a portion of the overall water footprint when facilities rely on fossil fuel or nuclear sources; wind and solar generation use none.

Developers have cited public preferences in shifting away from water-based cooling at some planned sites. Aaron Bilyeu of Cloverleaf Infrastructure stated that community opposition has influenced decisions on cooling technology.

Most of a data center’s indirect water use occurs upstream at power plants rather than at the facility itself. Operators are preparing updated environmental disclosures in the coming weeks that will report water withdrawals and sources alongside energy metrics.

Guterres’s proposal for standardized reporting on environmental impacts has added momentum to these releases. Companies including Microsoft and Google are expected to publish annual sustainability reports that include water data for their data center fleets.

The pattern of local permitting disputes and state-level reviews is likely to continue as additional facilities are proposed. Analysts expect further examination of how cooling choices and electricity sources affect water balances in individual basins.