Data Center Water Use Sparks Moratorium, Lawsuits in California's Imperial County; Virginia Report Cites Groundwater Constraints
Imperial Valley Computer Manufacturing is suing the Imperial Irrigation District and Imperial County in California over water access for its planned 330-megawatt data center, after its recycled water deal fell apart. The company aims to repurpose agricultural water rights, sparking an emergency moratorium on data center development by Imperial County, which the company is also challenging legally. Meanwhile, Virginia's Department of Environmental Quality released a delayed report highlighting constrained groundwater supplies critical to the state's data center corridor, leading to calls for a special legislative session on water resources.
In California's Imperial Valley, Imperial Valley Computer Manufacturing is facing legal challenges regarding its plan to build a 330-megawatt AI data center. The company initially proposed using recycled wastewater from Imperial and El Centro but, after that deal failed, applied to the Imperial Irrigation District (IID) for 260 million gallons of Colorado River water annually. IID denied the request, leading the company to file a lawsuit.
The company's legal strategy involves leasing 160 acres of farmland to acquire its associated water rights, arguing this constitutes "no net new demand" on the overstressed Colorado River. Water advocates, including Erin Brockovich and Suzanne Boothby, and legal experts are concerned this could set a dangerous precedent for developers in arid regions. In response, Imperial County Supervisors enacted an emergency moratorium on data center development in June, extending it for a year in July to allow time for new zoning rules. Imperial Valley Computer Manufacturing has also sued over the moratorium, vowing to challenge its extension.
Separately, Virginia's Department of Environmental Quality released a long-delayed 117-page report on the state's coastal aquifer, revealing constrained groundwater supplies and declining availability, particularly in areas like Henrico County, a key data center hub. The report, which lawmakers saw months after the legislative session, recommends strengthening DEQ's authority over water withdrawal permits and requiring alternative water sources for industrial users. Two state senators have called for Governor Abigail Spanberger to convene a special session to address the alarming groundwater data and its implications for the Commonwealth's water policy and the rapidly expanding data center industry.