The explosion of data centers across the U.S. is one of the economic hallmarks of the 2020s. And with data in demand, so too is the demand for water these centers need to operate.
Founded in Phoenix, Ariz. but relevant across the world, this report dives into the growing stress on local and regional water supplies from the growth of data centers. While data centers' direct on-site water use is significant and has been subject to increasing attention, this report finds that indirect water use – primarily from power generation to meet their massive energy needs – has an even greater impact. Moreover, the report examines the cumulative impacts of clustered facilities in a small geographic area -- often in already water-stressed areas.
These dynamics present financial, operational, reputational, legal, and regulatory risks for data center operators and high-tech businesses. The report offers key takeaways and unique data, as well as highly relevant recommendations for companies, investors, water managers, and policymakers alike.
KEY FINDINGS
In the coming years, annual water use associated with data center electricity consumption is expected to increase by 400%, from an estimated 2.9 billion gallons to over 14.5 billion gallons – enough to supply the entire city of Scottsdale, Ariz. for over 2 years.
Water use associated with data center cooling operations is expected to increase by 870% as more facilities come online, from 385 million gallons a year to more than 3.7 billion gallons – enough to supply a city the size of Flagstaff, Ariz. for 1.75 years.
Data center growth could increase water stress in already strained basins by up to 17% annually – with even higher spikes in peak seasons.