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Our Work on Data Centers

Due to the rise of artificial intelligence and cloud computing, the buildout of data centers in the United States is happening at a rapid speed. Ceres works with companies, investors and policymakers on strategies to support this transition to a more digital economy while safeguarding the electric grid, protecting precious water resources, and mitigating the impact on affected communities. 

Climate and economy impact

Quick facts to know about the climate risks imposed by data centers.

Water

Roughly one third of data center construction is concentrated in areas of the U.S. that are 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 electricity demand in the U.S., and that demand is expected to triple over the next decade. Both the U.S. 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. 

Investor Resources

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

The Ceres Valuing Water Finance Initiative is a voluntary initiative for investors to engage companies to act on the financial impacts of water risk and protect water and freshwater ecosystems.

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Water and High-Tech Working Group

The Water and High-Tech Working Group is a forum for investor education and idea-sharing on water issues within the high-tech industry and supporting industries such as data centers and semiconductor manufacturing.

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Investor Water Toolkit

Developed in collaboration with more than 40 institutional investors, the Investor Water Toolkit is a comprehensive resource for investors—from pension funds to endowments to asset managers—to evaluate and tackle the water risks in their investment portfolios.

Explore the toolkit

Explore our reports

Sustainable Solutions for Data Centers Report Cover

Sustainable Solutions for Data Centers

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Drained by Data Report Cover

Drained by Data: The Cumulative Impact of Data Centers on Regional Water Stress

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2025 Valuing Water Finance Initiative Benchmark: High-Tech Industry

2025 Valuing Water Finance Initiative Benchmark: High-Tech Industry

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Learn How to Create a Transition Plan

Broad commitments and long-term goals for stabilizing the climate, protecting water, and conserving and restoring nature aren’t enough. The next step for investors and companies is to develop and publicly disclose a concrete plan for moving from commitment to impact.

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Latest updates

Read the latest news and insights on data centers and policies.

Arizona data centers bring hidden water risks | Opinion

Ceres' Senior Program Director, Water, Kirsten James discusses how data center clusters are putting pressure on the state's water resources.

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AI’s Water Use Ripples Far Across the Supply Chain

In Sustainable Investor, Cathay Financial CIO Sophia Cheng and Ceres CEO Mindy Lubber argue that investors and companies should take greater notice of AI’s growing strain on water resources.

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Strong methane rules can support US competitiveness while mitigating risk in the digital age

In Impact Alpha, Ceres Senior Director, Climate and Energy, Andrew Logan discusses mitigating energy risks for data centers.

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Water impacts from data centers may expose companies to more risk than acknowledged, a new analysis shows

Ceres' Communications Manager, Water, Tamera Manzanares highlights a new Ceres analysis covering 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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Support our work to ensure the sustainable expansion of data centers

Our work to the transition to a cleaner, just and more resilient economy depends on the generosity of supporters like you. Your gift will help Ceres drive progress across every sector of the economy.

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