Data centers not responsible for Arizona water crunch, experts say
Experts suggest data centers are not the primary cause of Arizona's Colorado River water crisis, despite high public concern. Arizona's Attorney General proposed a pause on new data center construction due to water and power intensity, a proposal rejected by the Governor, who instead enacted a moratorium on data center tax breaks. Water usage transparency remains a challenge in the state.
Public concern is growing in Arizona regarding data center water consumption, particularly as the Colorado River faces severe cuts. However, experts like Rhett Larson, a water law professor at Arizona State University, state that while data centers are rapidly growing and use significant water, they are not the primary cause of the current Colorado River crisis, which also affects other states like California.
Arizona Attorney General Kris Mayes called for a pause on new data center construction, citing their power and water-intensive nature. Governor Katie Hobbs rejected this proposal but did sign a budget bill implementing a three-year moratorium on new tax breaks for data centers. Earlier, a proposal by Gov. Hobbs for a 1 cent per gallon fee on data center water use failed to advance. Transparency in water usage by data centers remains an issue, as companies are not required to report usage publicly, and utilities often do not track or release such data.
While data centers in the Phoenix area are estimated to use millions of gallons annually for cooling and billions including power generation, agriculture accounts for 72% of Arizona's water usage. The debate continues whether the state will prioritize data centers over other sectors, potentially redirecting water from farms. In California, a bill requiring data centers to report projected water usage is awaiting the Governor's signature, highlighting a push for greater transparency in other states.