Data centers are coming to Colorado. Can the parched state handle their big water needs?

Data centers are rapidly expanding across the U.S., with concerns arising over their significant water demands, particularly in arid regions like Colorado. Experts warn that the growth of data centers, driven by the rise of AI, could put a strain on water resources and impact other industries, especially agriculture, which is the largest water user in Colorado. As data centers require substantial energy and cooling, their water usage is a complex issue involving power generation, water utilities, and potential acquisition of agricultural water rights. Regulators are grappling with balancing the benefits of data center development with the risks of increased water consumption in already water-stressed areas.