Artificial intelligence data centers consume far more water than most people realize—not primarily from their onsite cooling systems but from the vast amounts of water used to generate the electricity that powers them. According to recent analysis, thermal electricity generation, including fossil fuels and nuclear power, accounts for upwards of 3 to 4 trillion gallons of freshwater withdrawals annually across seven U.S. states where more than half of the nation’s data centers are located. This hidden water impact poses serious challenges for sustainability and resource management as the AI industry rapidly expands.
Why this matters
Water scarcity is an escalating global concern, affecting ecosystems, agriculture, and communities. The technology sector is often viewed as a clean, digital space with minimal environmental impact, but behind the scenes, the infrastructure demands of AI and cloud computing carry significant water and energy footprints. Thermal power plants, which provide much of the electricity for data centers, require extensive water withdrawals for cooling processes. This indirect water use contributes heavily to local and regional water stress, especially in water-scarce areas like Arizona and Illinois. As AI adoption grows, understanding and addressing this hidden water liability becomes essential for companies striving to reduce their environmental impact and for policymakers focused on sustainable resource management.
What is happening
A new report by nonprofit Ceres revealed that states like California, Virginia, Georgia, Ohio, Texas, Arizona, and Illinois collectively represent the water use hotspot for powering AI data centers. California tops the list with nearly 1.4 trillion gallons of water withdrawn annually, primarily because of its dependence on hydroelectric power, which consumes large amounts of freshwater compared to other sources.
In contrast, states like Ohio, Georgia, and Virginia rely heavily on thermal power generation—including natural gas, coal, and nuclear power—accounting for more than 90 percent of their indirect water use linked to data centers. This reliance on water-intensive thermal electricity sources magnifies the sector’s water footprint far beyond what is visible at the data center itself.
Texas stands out with comparatively lower water withdrawals due to its more significant grid mix of solar and wind power, which reduces reliance on water-heavy thermal power plants. However, Arizona and Illinois remain highly vulnerable to drought and water stress, raising critical questions about where new data centers should be located to minimize environmental strain.
Adding urgency to the problem is the rapid expansion of natural gas-powered capacity by major AI and cloud providers such as Amazon, Meta, Microsoft, and OpenAI. This trend could increase freshwater withdrawals dramatically in states reliant on thermal generation, exacerbating water risks that data center companies have yet to fully acknowledge or disclose.
What readers can take away
- Location matters: Choosing sites for data centers in water-rich and renewable-energy-heavy regions can significantly reduce water risks.
- Power source transparency is key: Data center operators should disclose their electricity sources and associated water impacts to improve accountability and allow informed decision-making.
- Renewables reduce water use: Expanding solar and wind power integration into data center energy supply chains can help mitigate indirect water consumption.
- Collaboration can drive change: Data center companies, utilities, and policymakers should work together to develop best practices that minimize water withdrawals in stressed regions.
- Measure to manage: Establishing uniform standards and metrics for tracking water use tied to electricity procurement is essential for addressing this hidden liability.
What to watch next
An upcoming milestone highlighted by the analysis is the projection that by 2030, water use tied to power generation for data centers will account for more than 70 percent of their total water consumption. Meanwhile, growing calls from sustainability groups and investors for greater transparency may push data center operators to disclose these indirect impacts more openly.
Additionally, the October 30 deadline for registration to Trellis Impact 27 could serve as a forum for industry stakeholders to explore strategies for reducing water-related risks linked to AI data centers and their energy sources.
FAQ
Why do AI data centers consume so much water if the water isn’t used for onsite cooling?
While data centers do use water for cooling their equipment, the majority of water withdrawals occur indirectly through the electricity generation that powers them. Thermal power plants, especially those running on fossil fuels and nuclear, require large volumes of water for cooling their turbines, which leads to significant water withdrawals even if the data center itself does not use much water directly.
Which types of electricity generation have the greatest water impact?
Thermal power sources such as coal, natural gas, and nuclear consume the most water due to the need to cool their systems. Hydroelectric power also uses large amounts of water, but through reservoir management rather than consumption. In contrast, renewable sources like solar and wind have minimal water footprints, making them preferable from a water sustainability perspective.
Are data center companies currently transparent about their water use linked to electricity?
According to experts cited by Ceres, few data center operators disclose the water footprint associated with their electricity consumption. This lack of transparency makes it difficult to assess and manage water risks effectively. Increased disclosure and setting industry standards for water reporting are likely necessary steps forward.
Original source: read more here.
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