Arizona water experts discuss data centers' role in Colorado River cuts
Water experts are debating whether data centers are a significant factor in Arizona's Colorado River water cuts, noting the industry's rapid growth and substantial water consumption, despite difficulties in tracking exact usage. Arizona Attorney General Kris Mayes called for a pause on new data center construction, but Governor Katie Hobbs rejected the idea, though she did sign a budget bill implementing a three-year moratorium on new tax breaks for data centers. The state grapples with balancing water conservation, economic development, and transparency in data center operations.
Amid significant Colorado River water cuts impacting Arizona, a debate is unfolding among water experts regarding the culpability of the state's rapidly growing data center industry. While many researchers, including Rhett Larson, a professor of water law at Arizona State University, acknowledge that data centers are water-intensive and expanding quickly, they currently do not believe these facilities are the primary cause of the crisis. However, they warn that without sustainable management, data centers could exacerbate future water problems.
Following the federal Bureau of Reclamation's two-year plan mandating Arizona to cut 760,000 acre-feet from its water consumption, Arizona Attorney General Kris Mayes urged a pause on new data center construction, citing their intensive power and water demands. Governor Katie Hobbs, a fellow Democrat, rejected this direct construction pause but did enact a three-year moratorium on new tax breaks for data centers in a June budget bill. A previous proposal from Hobbs in January to levy a 1-cent per gallon fee on data center water use, which would have generated $6 million annually, did not advance.
Quantifying data center water usage in Arizona has proven challenging, as the Arizona Department of Water Resources (ADWR) does not track most facilities, and water utilities cite privacy policies. Nell Green Nylen, a senior research fellow at the University of California at Berkeley, highlighted the difficulty in assessing the scale of water use, noting that direct consumption for cooling is only part of the equation, with indirect water usage for power generation being significantly higher. Companies like Iron Mountain, with data centers in Phoenix and Scottsdale, employ closed-loop cooling to reduce direct water use.
As Arizona continues to face water scarcity, particularly given that agriculture accounts for 72% of the state's water usage, policy discussions are intensifying. In California, Assemblymember Diane Papan has authored a bill to mandate data centers report projected water usage before receiving permits, reflecting growing public concern over local resource impacts. Environmental groups, such as the Grand Canyon chapter of the Sierra Club, also express concern about any additional water demands on the already strained Colorado River.