Study examines water use and environmental impacts of California data centers
A new report from Santa Clara University and Next 10 analyzes the water use and environmental justice impacts of data centers in California, focusing on vulnerable regions like Imperial County. It highlights concerns over proposed hyperscale facilities in water-scarce areas, using the Imperial Valley Computer Manufacturing, LLC project as a case study. The study recommends legislative action for greater disclosure and incentives for sustainable water and energy practices.
Santa Clara University's Water and Climate Justice Lab and Next 10, a California-focused think tank, released a comprehensive report examining the direct water use by data centers in California, particularly concerning water availability and distribution and environmental justice. Authors Iris Stewart-Frey and Irina Raicu argue that generative AI and hyperscale data centers consume substantial water and highlight the disproportionate impact on vulnerable communities.
The report identifies Imperial County as a critical case study, noting its high rankings in both "Social Vulnerability" and "Water Scarcity." Researchers specifically cite the proposed Imperial Valley Computer Manufacturing, LLC facility in the City of Imperial as an example. This $10 billion data center, if built, would be one of the largest in the U.S. in one of the driest regions, dependent on imported Colorado River water already facing mandatory reductions.
The study points out a trend of data centers expanding from urban tech hubs into more socially and hydrologically vulnerable ex-urban and rural areas like Imperial County. It found that the proposed Imperial data center is located in an area with the highest combined social vulnerability and water scarcity. While a proposed facility in Calipatria, initially promoted for its low water usage and geothermal energy, was withdrawn in early 2026, the report raises questions about economic diversification versus water-intensive alternatives.
The authors recommend that state lawmakers advocate for legislation requiring disclosure of data centers' electricity and water usage. Next10 Founder Noel Perry emphasized the need for the state legislature to strengthen accountability, sustainability, and transparency requirements for data center developers. The study also encourages incentives for water and energy-saving technologies, recycled water use, and developers to avoid disproportionately affected areas, focusing instead on sites with sufficient water, cooler climates, or renewable energy access.