How much water and power do data centers really use?
Nevada is experiencing significant public opposition to data centers due to concerns over their high water and electricity consumption, with over 70 facilities operating or planned statewide. Regulatory bodies like the Southern Nevada Water Authority have banned certain cooling methods, and NV Energy has proposed new cost-sharing agreements for large energy users. The article also explores the economic and environmental impacts, separating facts from common misconceptions.
Nevada is facing increasing public opposition to the more than 70 data centers currently operating or planned in the state, largely due to concerns over their significant water and electricity consumption. Rebecca Gill, an associate professor at UNLV, notes that the "data center fight" unites diverse groups worried about various issues related to the industrial facilities. Data centers, which are essential for internet functions, accounted for 4.4 percent of national electricity consumption in 2023, with projections to reach up to 12 percent by 2028, and Nevada is one of the top 15 states in demand.
NV Energy, the state's electric utility, estimates it needs to double its current system's peak demand to meet existing electricity requests, primarily driven by data center growth. The utility has proposed mandatory large load electric service agreements requiring companies consuming 25 megawatts or more to pay for associated infrastructure and energy costs. Data centers also heavily rely on water for cooling, using either water-intensive evaporative systems or more efficient closed-loop systems. In 2023, the Southern Nevada Water Authority banned evaporative cooling for data centers in Southern Nevada.
While data centers create jobs, research by the Brookings Institute suggests the numbers are lower than industry claims, and that employment levels depend on the type of facility (hyperscale creating more jobs than colocation). Home prices in counties with data center construction tend to rise by 2-5 percent. Tax abatements, while secondary for hyperscale facilities, are crucial for colocation data centers, accounting for about 62 percent of their total investment. Additionally, data centers contribute to air pollution indirectly through their reliance on fossil-fueled power plants and diesel backup generators.