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By EPN Staff

Massive data centers that power AI models are drawing millions of gallons of water for cooling, triggering concerns in drought-prone regions like Arizona and Utah.

Lawmakers and utilities are increasingly evaluating conditional permits, consumption caps and surcharge frameworks to balance economic growth with environmental responsibility.

Why it matters

AI-driven data centers rely heavily on evaporative cooling systems, commonly known as “swamp cooling,” which consume substantial volumes of water.

According to the International Energy Agency, a typical 100-megawatt data center can use up to 2 million liters of water daily, roughly equivalent to the consumption of 6,500 households.

A Bloomberg analysis shows that over two-thirds of new data centers built since 2022 are in drought-stressed areas.

As states expand these facilities, officials are grappling with how to balance AI growth and local water conservation goals.

  • In Arizona, Chandler caps data center water use at 115 gallons per day per 1,000 square feet, and areas like Marana prohibit the use of potable water to these facilities altogether, forcing developers to secure alternate sources.
  • Tucson’s draft “Project Blue” AI complex is projected to consume up to 2,000 acre-feet annually, about 6% of Tucson Water’s reclaimed resource capacity, with financial surcharges for overuse included in its approval deal.
  • In Utah, a recent state law tightens permitting for large data centers, specifically targeting facilities expected to consume over 100 million gallons annually.
  • A major AI center in West Jordan secured a $2 billion loan and is required to use a water-efficient cooling system to address scarcity concerns.
The bigger picture

The rapid establishment of AI data centers is not only a water challenge but also part of a broader environmental resource debate.

A recent NASA study reports groundwater losses in the Colorado River Basin equivalent to Lake Mead’s volume, noting that tech infrastructure plays a role in accelerating depletion.

Some tech providers have responded by adopting alternative cooling technologies, like air cooling or non-potable water systems, and committing to water stewardship programs.


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