Nebraska wants data centers to come clean about water usage
Nebraska has passed a new law requiring data centers to disclose their annual water use and power demand. This legislation addresses concerns from residents and regulators about potential water shortages in a drought-stricken state and aims to increase transparency and aid future planning. Major data center operators like Google and Meta are specifically mentioned in relation to their water consumption.
Nebraska has enacted a new law compelling data centers to disclose their annual water usage and power demand. This legislative action, championed by figures like Jesse Bradley, director of the Department of Water, Energy, and Environment, aims to enhance transparency in an industry often criticized for its opacity. The state seeks to address critical information gaps and facilitate better future planning, particularly concerning water resource management.
The legislation emerges amidst escalating concerns over water scarcity in Nebraska, an agricultural state frequently affected by extreme drought. Local residents, environmental researchers, and regulators fear that the proliferation of data centers could exacerbate existing water shortages. Currently, data on water consumption by these facilities is largely self-reported by companies. For instance, Google's Nebraska operations consumed approximately 732 million gallons of water in 2025, while Meta’s Sarpy County data center withdrew 26.7 million to 37.5 million gallons annually between 2020 and 2024.
Data centers utilize water primarily for cooling, with methods varying from water-intensive evaporative systems to more water-efficient closed-loop chillers, which typically consume more electricity. Experts like Eric Masanet, a University of California, Santa Barbara engineering professor, highlight that the optimal cooling method depends on local climate, water availability, and power resources. Companies like Google assess local watersheds, and Meta employs a hybrid cooling system. The expanding footprint of data centers into rural areas further intensifies worries in regions with already limited or fully allocated water supplies, according to Dan Diorio, vice president of state policy at the Data Center Coalition.
As droughts and rising temperatures due to climate change are projected to increase water demand, water policy has become a central issue for state officials. Crystal Powers, a water extension educator at the University of Nebraska-Lincoln, and John Winkler, general manager of the Papio-Missouri River Natural Resource District, emphasize the need to avoid placing water-intensive industries in water-insecure areas. Researchers continue to advocate for greater efficiency and transparency within the data center industry.