Banning data centers won't solve water problems in the West
Oshkosh, Wisconsin, is considering a one-year moratorium on data centers due to concerns over water consumption and land use. This proposal is part of a wider debate in the Western US regarding the increasing resource demands of the data center industry. The article argues that instead of banning facilities, policymakers should encourage and incentivize water-conserving technologies.
Oshkosh, Wisconsin, is currently considering a one-year moratorium on data center developments, citing concerns over high water consumption and land use. This local proposal reflects a growing debate across the Western United States as communities grapple with the increasing resource demands of the burgeoning data center industry, particularly as generative AI accelerates demand for digital infrastructure.
The commentary highlights several instances of these resource disputes. In Phoenix, a hyperscale facility reportedly saves 138 million gallons annually through advanced thermal cooling. However, water use for data center cooling in Phoenix is projected to surge by 870 percent, and Utah Clean Energy estimates a proposed Stratos hyperscale project could demand an additional 16.6 billion gallons of water annually. Policy impacts are already evident, with the Tucson, Arizona, City Council denying annexation and municipal water access for the 'Project Blue' data center, though Pima County later approved the broader project. In Utah, Bar H. Ranch withdrew its application for water rights transfer to Stratos following significant public opposition.
The author, Peter Clark, an Arizona-based writer, argues against outright bans, advocating instead for policy tools that foster innovation in water efficiency. He suggests that lawmakers should implement permitting requirements, mandatory water-use reporting, and tax incentives to encourage developers to adopt less water-intensive cooling systems, such as advanced thermal cooling or closed-loop systems. Clark emphasizes that data centers are crucial to the modern economy, contributing significantly to GDP, jobs, and tax revenue.
Ultimately, the article concludes that while concerns over data center water consumption are valid, prohibiting their development is a short-sighted solution. Instead, policymakers should actively promote and incentivize water-conserving technologies, adapting to resource scarcity while supporting the essential digital infrastructure that drives the economy.