As the United States grapples with unprecedented drought conditions, the burgeoning artificial intelligence sector is relentlessly expanding its footprint through the construction of new data centres. An analysis reveals that approximately two-thirds of these facilities are slated for some of the driest areas in the nation, raising urgent questions about water use and environmental sustainability.
Data Centres Thrive Amid Drought
Recent data indicates that out of 809 planned data centres, 517 are located in regions that have faced drought conditions over the past year. This trend comes at a time when over 60% of the contiguous United States is experiencing varying degrees of drought, the most extensive coverage recorded for this time of year. The implications for local water supplies and ecosystems are alarming, particularly given that large data centres can consume up to 5 million gallons of water daily—equivalent to the needs of around 50,000 residents.
The escalation in water demand is not merely a concern for the immediate region; projections suggest that by 2028, the cumulative water usage of data centres could soar to an astonishing 73 billion gallons annually, compared to 17 billion in 2023. Each 100-word AI prompt is estimated to require approximately 500 millilitres of water, primarily for cooling systems that manage the heat generated by extensive arrays of servers.
Climate Change and Water Demands
Experts attribute the increasing severity and duration of droughts in the United States to climate change, linked to fossil fuel consumption and greenhouse gas emissions. Christopher Dalbom, a water resources law expert at Tulane University, highlights the exacerbating effect of expanding data centres. “The AI industry is racing to secure market dominance, while the rest of us will face a significant uptick in water demand in already parched areas,” he asserts. The challenge lies not only in water scarcity but also in prioritising access amid competing interests.
This dilemma is starkly illustrated in Texas, where projections suggest that data centres could account for 9% of the state’s total water usage by 2040. With water supplies dwindling, the state will soon confront the reality of allocating limited resources between residents, agriculture, and burgeoning tech infrastructure.
Local Opposition and Policy Responses
The rapid development of data centres has sparked significant community backlash, particularly in rural and conservative regions. Ranchers and farmers express legitimate concerns about water allocation, as they are urged to conserve while tech giants exploit local supplies. Andrew Coppin, CEO of Ranchbot, articulates the frustration: “Ranchers are being told to conserve, yet large corporate entities are seemingly granted unrestricted access to vital water resources.”
In response to growing unease, some local governments are considering legislation to manage water use and ensure accountability from data centre operators. States like California, Iowa, and Michigan are deliberating laws requiring regular reports on water consumption, while New York has proposed a moratorium on new data centre constructions.
The Case of the Stratos Project
The Stratos Project, a significant data centre initiative in Box Elder County, Utah, has come under scrutiny due to its potential environmental impact. Despite assurances from state officials that the project will not jeopardise the already strained Great Salt Lake, opposition is mounting. Critics argue that the project’s substantial energy and water requirements will exacerbate the region’s ecological challenges.
Backed by Canadian businessman Kevin O’Leary, the Stratos Project aims to bolster economic growth in rural Utah. However, local communities are uniting against it, with ecologists warning that the project may further deplete water resources already strained by climate change and historical overuse.
Why it Matters
The expansion of data centres in drought-stricken areas underscores a critical tension in today’s economy: the demand for technological advancement versus environmental sustainability. As water scarcity becomes an increasingly urgent global issue, the decisions made by policymakers and industry leaders in the coming years will have lasting implications for both local ecosystems and the future of resource management. The challenge lies in finding a balance that allows for technological progress while safeguarding vital water resources for future generations.
