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Data centers’ water use is hard to track, raising concerns in the drought-prone West, study finds

This is an image of a fenced-off development site, backdropped by brown mountains. On the right of the image is a sign that says "Welcome to Powerhouse Reno Data Center."
Kaleb Roedel
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Mountain West News Bureau
Tech company PowerHouse has plans to build three data centers on its 49-acre property at the Tahoe Reno Industrial Center outside of Reno, Nevada.

As data centers rapidly expand across the Mountain West, researchers say a key question is getting harder to answer: how much water are they actually using?

A new study led by the University of Illinois finds that much of that information isn’t publicly available, creating challenges for communities trying to plan in a region where water is already scarce.

Data centers — the massive facilities that power everything from streaming to artificial intelligence — rely on water to keep their computer servers from overheating. But a fast-growing problem is how little is known about their total water use, said co-author Ana Pinheiro Privette.

“If we don’t have the data, if we don’t have the transparency, we’re just walking in the dark right now,” she said.

Pinheiro Privette said the gap includes both direct water use at facilities and indirect use tied to electricity generation.

Researchers estimate that data centers across the U.S. used about 17 billion gallons of water in 2023. That number is expected to rise sharply as demand for artificial intelligence and cloud computing continues to grow.

At the same time, the study finds that consistent, detailed reporting on water use is rare. In many cases, utilities and tech companies do not publicly disclose that information, making it difficult to fully understand the impact on local water supplies.

Aerial view of a data center under construction in Phoenix, Arizona, on a clear day.
Wirestock
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Adobe Stock
Data centers, like this facility under construction in Phoenix, Ariz., are expected to demand massive amounts of energy and water in the Mountain West.

That lack of transparency can have real consequences for fast-growing regions like Nevada and Arizona, where new data centers are being built in already water-stressed areas.

“If a community wants to plan for how much water it needs to deliver for this growth of data centers, and there’s no data, we’re kind of like shooting a little bit in the dark,” Pinheiro Privette said.

Without reliable information, she added, it becomes much harder for policymakers and utilities to make informed decisions.

“We cannot write policy if we don't have data, right? It's not evidence-based,” she said.

Researchers say that the gap between rapid industry growth and limited public data is creating a mismatch between how quickly data centers are being built and how slowly water infrastructure can adapt.

While data centers currently account for a relatively small share of total water use compared to sectors like agriculture and energy production, their impact can be highly localized, placing new demands on communities that may not be prepared.

Pinheiro Privette says improving transparency could help communities better weigh the tradeoffs between economic development and long-term water sustainability.

In the West, where drought and water scarcity are ongoing concerns, she said that information will be critical as demand for both data — and water — continues to grow.

This story was produced by the Mountain West News Bureau, a collaboration between KUNR, Wyoming Public Media, Nevada Public Radio, Boise State Public Radio in Idaho, KUNC in Northern Colorado, KANW in New Mexico, Colorado Public Radio, KJZZ in Arizona and NPR, with additional support from affiliate newsrooms across the region. Funding for the Mountain West News Bureau is provided in part by the Corporation for Public Broadcasting and Eric and Wendy Schmidt.

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Kaleb is an award-winning journalist and KUNR’s Mountain West News Bureau reporter. His reporting covers issues related to the environment, wildlife and water in Nevada and the region.