Tech firms face growing pushback over data center water use

In short: Data centers are drawing more public scrutiny for how much local water they use for cooling, and big tech firms are responding in different ways.

What's going on

Data centers, the buildings that hold racks of computers, use a lot of water mainly to keep machines from overheating. A common method is evaporative cooling, which works like sweating, water absorbs heat and then evaporates outside.

Water use is becoming a major flashpoint in local fights over new data centers. A Gallup poll found about seven in 10 Americans oppose data center development, and water scarcity was the top resource concern. SpaceX also added water scarcity, drought, and water rules to its IPO risk disclosures, saying these issues could limit data center growth.

The amounts can be large. Google reported that its data center in Council Bluffs, Iowa consumed more than 1 billion gallons of water in 2024. A 2024 report from Lawrence Berkeley National Laboratory projected that very large data centers could use up to 33 billion gallons a year by 2030 if many rely on evaporative cooling, which can be especially stressful in summer when both residents and data centers need more water.

Companies are not taking the same path. Microsoft, OpenAI, and Oracle have recently signaled they want to move away from evaporative cooling to save water. Google is instead making new commitments, including investing in local water projects to replenish more freshwater than it uses, using more reclaimed and recycled water, and publishing annual data center water use.

What to watch

The hard trade-off is water versus electricity. Avoiding water-based cooling can mean using more power for cooling, which can raise costs and emissions depending on how the electricity is made. Expect more local rules, more reporting requirements, and more projects that try to reduce both water use and energy use at the same time.

Source: Arstechnica