New report warns heat could increase water demands as AI data centers expand across Memphis

New report warns heat could increase water demands as AI data centers expand across Memphis

News ClipFOX13 Memphis·Memphis, Shelby County, TN·6/18/2026

A new report warns that expanding AI data centers in Memphis, a city prone to chronic heat, could significantly increase water demands for cooling. This concern is highlighted by xAI's Southwest Memphis facility's high water usage and its halt of a promised grey water facility project. Experts warn of potential depletion and pollution of the Memphis aquifer if current trends continue.

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xAI

The rapid expansion of artificial intelligence data centers in the Mid-South, particularly in Memphis, Tennessee, is raising concerns about water demand. A new report from climate research company First Street indicates that many burgeoning data center hubs, including Memphis, are situated in areas vulnerable to significant climate risks like chronic heat. Memphis typically experiences 64 days annually with temperatures exceeding 90 degrees Fahrenheit, intensifying the need for water in data center cooling.

Jeremy Porter, First Street's chief economist, highlighted that data centers require substantial water for cooling, alongside reliable electrical grids and fiber access. Senior economist Jasmina Buresch added that increased heatwaves necessitate more cooling resources, making water an even more critical and potentially resource-intensive component.

These findings are particularly relevant in Memphis, where xAI recently halted construction on a planned grey water facility intended to reduce its dependence on the Memphis aquifer for cooling. Records supplied by the group Protect Our Aquifer revealed that xAI's Southwest Memphis facility consumed 24 million gallons of fresh drinking water in March alone.

Experts caution that continued depletion of vital water sources such as the Memphis aquifer could lead to reduced water quality and increased pollution, potentially resulting in severe consequences for a large city like Memphis.