How some data center operators are tackling their water use problems

The rapid expansion of data centers, crucial infrastructure for the AI boom, is facing significant challenges due to their substantial water consumption. This issue is becoming increasingly contentious, with recent polls indicating public opposition to data center development primarily due to water scarcity concerns. Tech giants are under pressure to address these environmental impacts.

Data centers primarily use water for cooling server racks, which generate immense heat. Evaporative cooling, a common technique, uses fresh water that evaporates to dissipate heat. While this method can save money and reduce emissions by lessening the power needed for energy-intensive recirculation pumps, it also carries a considerable water footprint. For instance, Google's Iowa facility consumed over a billion gallons in 2024 using this method.

Projections indicate that hyperscale data centers could consume up to 33 billion gallons of water by 2030 if they continue to rely heavily on evaporative cooling. This substantial demand, while comparable to other water-intensive industries, poses a significant risk in regions already experiencing water stress, especially during peak summer demand when municipal water use also spikes.

In response to these concerns, some tech companies, including Microsoft, OpenAI, and Oracle, are moving away from evaporative cooling. Conversely, Google is adopting a different strategy, emphasizing a "data-driven framework" to assess cooling designs based on local watershed conditions. They argue that a one-size-fits-all approach is ineffective given the regional variations in water availability.

Experts highlight a critical trade-off between water and power consumption. Avoiding evaporative cooling entirely can lead to increased power usage, potentially driving up costs and carbon emissions, especially if data centers rely on non-renewable energy sources for cooling. This underscores the complexity of balancing environmental impact with operational efficiency in data center design.

Despite ongoing efforts, tech companies continue to face difficulties in curbing water use. Past incidents, such as Google halting data center plans in Chile due to water concerns, illustrate the real-world consequences. The evolving landscape necessitates innovative and localized solutions to manage the interconnected challenges of water scarcity, energy consumption, and sustainable data center growth.