Experts say data centers not to blame for Colorado River cuts
Arizona faces significant cuts to its Colorado River water supply, intensifying public concern over data center water consumption. While experts do not blame data centers for the current crisis, their rapid growth and water intensity are noted. Arizona's Attorney General called for a construction pause, which the Governor rejected, though a three-year moratorium on new data center tax breaks was enacted.
Arizona is experiencing deep cuts to its Colorado River water allocation, leading to heightened public scrutiny of water consumption by data centers. While experts like Rhett Larson from Arizona State University acknowledge data centers use a lot of water and are growing rapidly, they generally do not attribute the current Colorado River crisis to them, citing a lack of detailed usage data.
In response to the water crisis, Arizona Attorney General Kris Mayes proposed a pause on new data center construction, citing their power and water intensity. However, Governor Katie Hobbs rejected this idea, though she did sign a budget bill in June that includes a three-year moratorium on new tax breaks for data centers. The Arizona Department of Water Resources (ADWR) does not track water usage for most data centers, and companies are not required to report it publicly, making it difficult to assess their precise impact.
Data centers' water usage varies significantly based on cooling systems and electricity sources; for instance, Iron Mountain's Arizona facilities use closed-loop systems that conserve water. While direct water usage for cooling is a small fraction of Arizona's total consumption, indirect water use for power generation substantially increases their overall water footprint. Agriculture accounts for 72% of the state's water usage, posing a difficult choice for Arizona on how to prioritize water resources.
Elsewhere, California Assemblymember Diane Papan introduced a bill to mandate water usage reporting for data centers before they can apply for business licenses or permits, emphasizing transparency. This bill is currently awaiting Governor Gavin Newsom's signature, and similar proposals are pending in the US Congress.