Study finds data centers' power generation consumes vast amounts of water; California ballot measure sparks debate over environmental review exemptions for data centers

A recent study by the think tank Ceres, titled "The Water Behind the Watts," reveals that data centers in the seven US states with the highest concentrations collectively consume an estimated 3.4 trillion gallons of freshwater annually for electric power generation. This volume surpasses California's average annual urban water demand, highlighting a significant and often overlooked environmental impact. The report also notes that few electric power producers connect increasing power demand to water supply risks, even in states outside the arid Southwest, where many of the power plants supplying these data centers are in water-stressed regions.

In California, a proposed ballot measure, Proposition 45, aimed at reforming the California Environmental Quality Act (CEQA) for certain building projects, has ignited a contentious debate. Opponents, including a coalition of environmental groups, labor unions, and the California Democratic Party, are campaigning against the proposition, arguing it would weaken environmental protections and expedite development for data centers and other large corporations. Mabel Tsang, political director of the California Environmental Justice Alliance, characterized the measure as a "corporate power grab" that would allow "data center giants, oil, gas and utility corporations to build what they want where they want." Proponents of Proposition 45 contend it would streamline environmental review processes, reduce delays, and lower costs for housing, infrastructure, energy, transportation, and digital access projects.