US artificial intelligence data center developers are locating the majority of new facilities in regions experiencing sustained drought conditions, according to analysis by Cleanview and US federal government data cited by The Guardian on May 8. Of 809 planned data center projects across the United States, 517 are situated in areas that experienced continuous drought over the past year, representing approximately two-thirds of all planned facilities. The site selection trend coincides with the largest spring drought extent in modern US monitoring records, with over 60% of the country's territory currently experiencing varying degrees of water scarcity. Developers prioritize these regions for lower land costs, favorable tax policies, and dry climates that reduce equipment corrosion, creating what researchers describe as compounding pressure on already-strained water resources.
Majority of Planned Data Centers Located in Drought-Affected Regions
The Guardian's analysis of 809 planned US data center projects found 517 facilities sited in areas that maintained drought conditions throughout the past year. Large data centers serving generative AI applications require highly purified water for server cooling, with some facilities consuming up to 5 million gallons daily—equivalent to the water usage of 50,000 people.
Alex de Vries, a financial economist at the Dutch central bank who studies AI energy consumption, told The Paper (www.thepaper.cn) that data centers represent highly localized infrastructure with power demands comparable to entire cities. When such facilities locate in water-scarce regions with stressed electrical grids or vulnerability to high temperatures and drought, they create disproportionate impacts on local resources and environments, exhibiting clear imbalance and localized extreme characteristics.
Christopher Dalbom, a water law specialist at Tulane University, stated that the AI industry is competing for market dominance at extremely rapid speed, but the additional water demand created falls on communities already troubled by drought, making water resource pressure points almost inevitable.
US Data Center Water Consumption Projected to Quadruple by 2028
Research projects US data center annual water consumption will reach 73 billion gallons by 2028, compared to approximately 17 billion gallons in 2023—a 4.29-fold increase over five years. A United Nations report released in June projects global data center annual water consumption will reach 9.3 trillion liters by 2030, equivalent to one year of basic living water for 1.3 billion people in sub-Saharan Africa.
Data analysis shows Google, Meta, Microsoft, and Amazon continue investing billions of dollars in new data center construction. Developers typically favor drought-affected regions with lower land prices, smaller populations, and generous tax incentives, while dry climates are also considered beneficial for reducing equipment corrosion.
Researchers estimate that by 2040, data center water usage may account for 9% of Texas's total water consumption. Specific controversial projects include a Utah facility approximately twice the size of Manhattan that received approval despite the state experiencing severe drought since last summer, Amazon's planned project in Walla Walla County, Washington, and large new projects in Pecos County and Carson County, Texas—all located in areas recently affected by drought.
Local Agricultural Communities Express Water Access Concerns
Andrew Kopin, CEO of Ranchbot, a US ranch digital management company, told The Guardian that ranchers are asked to conserve water and avoid waste, but newly entering data center projects appear able to obtain nearly unlimited water access rights. "If forced to choose between the two, most people would rather keep their steaks than keep their chatbots," he said, reflecting the increasingly sharp practical contradiction between agricultural water use and technology industry water use.
A Gallup national poll released in May found 70% of Americans unwilling to live near data centers. As opposition increases, California, Michigan, and Iowa are considering requiring operators to regularly disclose water usage data, while South Carolina and Kansas may require projects to adopt closed-loop cooling systems, and New York State is contemplating a moratorium on data center construction.
Industry Cites Closed-Loop Cooling Technology Adoption
The data center industry emphasizes that its overall water consumption remains far below traditional high-consumption sectors such as agriculture, and states it is improving impacts through more efficient cooling technologies and water resource replenishment projects. A representative of the US Data Center Coalition stated that operators are working closely with local governments to promote responsible water use and invest in local water infrastructure.
The industry is attempting to replace traditional evaporative cooling with technologies such as closed-loop cooling to reduce direct water consumption. However, such technologies typically require more electricity, and if power still primarily comes from fossil fuel generation, the generation process itself consumes substantial water resources.
The report cites Meta's planned large data center "Hyperion" in Louisiana as an example, noting that while the project adopts closed-loop cooling, it still requires 10 gas-fired power plants to provide energy, with indirect water consumption and carbon emission pressures remaining significant.
"Technology companies almost refuse to disclose this key information. They may tell you how much water they use directly on-site, but never tell you indirect water consumption—that is, how much water the power generation process consumed. And my research shows that in many cases, indirect impacts are often ten times greater than direct impacts," de Vries told The Paper.
Multiple States Consider Water Disclosure and Cooling System Requirements
California, Michigan, and Iowa are considering legislation requiring data center operators to regularly disclose water usage data. South Carolina and Kansas may mandate that projects adopt closed-loop cooling systems. New York State is contemplating implementing a moratorium on data center construction.
Experts note that the total water footprint brought by AI is not limited to data centers themselves. Research indicates that by mid-century, data centers will account for only 4% of new water demand from global AI expansion, with larger water consumption coming from power generation and semiconductor manufacturing. A separate United Nations document shows that by 2050, three-quarters of the global population may be affected by drought.
FAQ
How many planned US data centers are located in drought-affected regions?
Of 809 planned data center projects across the United States, 517 are situated in areas that experienced continuous drought over the past year, representing approximately two-thirds of all planned facilities, according to analysis by Cleanview and US federal government data cited by The Guardian.
What is the projected increase in US data center water consumption by 2028?
Research projects US data center annual water consumption will reach 73 billion gallons by 2028, compared to approximately 17 billion gallons in 2023—representing a 4.29-fold increase over five years.
What regulatory measures are US states considering for data center water use?
California, Michigan, and Iowa are considering requiring operators to regularly disclose water usage data. South Carolina and Kansas may require projects to adopt closed-loop cooling systems. New York State is contemplating a moratorium on data center construction.
