Arizona’s water is drying up. That’s not stopping the data center rush.
News Clipgrist.org·Phoenix, Maricopa County, AZ·3/4/2026
Arizona is experiencing water scarcity issues due to drought, but this has not stopped major tech companies like Microsoft, Meta, and Taiwan Semiconductor Manufacturing Company from building data centers and chip factories in the Phoenix area. While there were initial fears that these water-intensive facilities would further strain the region's limited water supplies, the companies have found ways to minimize their impact through new cooling technologies and water recycling.
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Arizona has seen a rush of data center development despite its water scarcity issues. While the data centers' water usage has not yet caused major strain, experts warn of potential indirect impacts, such as increased water consumption at power plants. Some cities have implemented policies to limit data center water usage, and developers have shifted to water-efficient cooling technologies. However, the state still faces a critical threat from the looming shortage on the Colorado River, which could significantly impact the region's water supply. Overall, Arizona is navigating the challenges of accommodating data center growth while managing its limited water resources.