The expansion of data centers in the U.S. is poised to deliver significant economic benefits, supporting innovation, job creation, and competitiveness in the global market. However, this growth will also increase energy demand and water use, raising important questions about grid reliability, affordability, and impacts on local communities. New facilities can be built in ways that are fast, fair, affordable, efficient, and clean, while also protecting local watersheds, community interests, residents, and local businesses. Working with investors, companies, and community organizations, Ceres has developed resources to help data center companies, utilities, investors, and policy makers ensure this growth is sustainable and widely beneficial.
Our Work on Sustainable Data Centers
The rapid growth of artificial intelligence and cloud computing is accelerating the buildout of data centers. Investors, companies, and policymakers can support the transition to a more digital economy while protecting the electric grid, precious water resources, and local communities.
The Climate Impacts
Quick facts to know about the water and energy impacts imposed by data centers.
Water
Roughly one-third of data center construction is concentrated in areas of the U.S. already experiencing serious water availability challenges. One data facility alone can use up to 550,000 gallons of water a day for cooling—as much as 1,800 U.S. households use daily. And generating electricity to power data centers can require significantly more water.
Energy
Data centers account for 4% of U.S. electricity demand, and that demand is expected to triple over the next decade. Both the Department of Energy and Duke University project that meeting future demand will require roughly 100 gigawatts of additional capacity by 2030—on par with the combined peak electricity demand of the U.K. and France.
Sustainable Solutions for Data Centers
Learn more about the practical steps data center developers and operators can take to meet rising computing and AI demand while minimizing the strain on local power grids and water systems. These solutions are designed to help companies, investors, and policymakers evaluate what responsible growth in the data center sector should look like as the industry continues to scale up.
How Investors Can Get Involved
Investors are increasingly aware of the challenges that pollution and dwindling water supplies pose to communities and the economy. Ceres educates and supports investors to address water risk within their own investment strategies and with the companies they invest in.
Valuing Water Finance Initiative
A voluntary initiative for investors to engage companies to act on the financial impacts of water risk and protect water and freshwater ecosystems.
Water and High-Tech Working Group
A forum for investor education on water issues within the high-tech industry and supporting industries such as data centers and semiconductor manufacturing.
Investor Water Toolkit
Developed in collaboration with more than 40 institutional investors, this comprehensive resource helps investors evaluate and tackle the water risks in their investment portfolios.
Expert Insights
Read the latest news and insights on data centers from our experts.
Data Centers Are Growing Fast. How We Build And Power Them Matters More Than Ever
Ceres CEO Mindy Lubber on why it is critical to make sure new data centers are built and operated in ways that are fair, affordable, efficient, and clean.
Grouping data centers magnifies water risk
Ceres Kirsten James on how Arizona data center clusters are putting pressure on the state’s water resources.
AI’s Water Use Ripples Far Across the Supply Chain
Ceres CEO Mindy Lubber and Cathay Financial CIO Sophia Cheng call on investors and companies to take greater notice of AI’s growing strain on water resources.
Strong methane rules can support US competitiveness while mitigating risk in the digital age
Ceres Andrew Logan on how stronger methane rules can support U.S. competitiveness while helping to mitigate energy risks in the expansion of data centers.
Water impacts from data centers may expose companies to more risk than acknowledged, a new analysis shows
Ceres announcement on the release of "Drained by Data,” an analysis that covers the full range of potential water risks facing data center companies, high-tech businesses, and investors due to compounding water demands.
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