AI, data centers and water

Across the country, from Virginia to Michigan to Arizona, tech companies are pouring billions of dollars into new data center projects needed to store and manage digital information amid the rise of artificial intelligence (AI). Meanwhile, state and local governments are enticed by projected increases in economic output, job creation, property tax revenue, and more that may accompany such projects. In some communities, leaders are practically tripping over themselves to lure more tech investment as part of the country’s expanding AI boom, whether by offering tax incentives or scrambling to approve permits.

But amid this AI-fueled gold rush, more leaders are beginning to pay attention to the short- and long-term natural resource concerns, especially around all the water needed to keep data centers running. And even beyond the water needed to support data centers, public and private leaders increasingly need to view data centers in light of larger regional plans and priorities around water infrastructure investment and economic development.

Building a new facility and pledging economic impact mean little without sustainably incorporating water resources into ongoing operations. While land and energy are also enormous inputs, water is a fundamental ingredient to keep servers and other equipment in data centers reliably cool. A typical data center uses 300,000 gallons of water each day (equivalent to the demands of about 1,000 households), but large data centers can use an estimated 5 million gallons of water each day, equivalent to the needs of a town of up to 50,000 residents. Moreover, projections show water used for cooling may increase by 870% in the coming years as more facilities come online. These direct water needs also do not include the indirect needs required for energy generated offsite or involved in manufacturing software components.

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