There's a power/water trade-off in data center resource allocation

Landon Marston, an Associate Professor of civil and environmental engineering at Virginia Tech, is examining the complex challenge of balancing power and water resources for data centers. His research indicates that while direct water use for cooling often receives attention, the water consumed for electricity generation, which powers these facilities, represents approximately 90 percent of a data center's total water footprint. Marston explains that this resource allocation creates a trade-off: methods to reduce direct water use, such as air-side cooling, can increase power demands, thereby escalating the indirect water usage associated with energy production from sources like natural gas, coal, or nuclear power. This issue is particularly pressing in drought-stricken areas, including southern Arizona, the Colorado River Basin, and Texas, where a significant number of new data center projects are planned, potentially straining already limited local water and power supplies. The researcher also vocalizes concerns about the long-term economic stability of public-private partnerships that fund data center infrastructure. He questions the financial liabilities, or "stranded assets," that could arise if an "AI bubble" bursts, leading to data centers defaulting on commitments and leaving utility providers with substantial, unrecovered infrastructure investments intended for 30-year payback periods. This highlights the need for a more comprehensive understanding of the interconnectedness of water and energy in data center development.