AI boom drives states to rethink data center water use
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Individual states are scrambling to regulate data centers' growing water demands as AI-driven growth outpaces federal standards, according to a University of Colorado Boulder report.
Why it matters: AI's water appetite is forcing states to balance the economic promise with mounting environmental concerns, especially in the drought-stricken West.
Driving the news: The report, "Thirst for Data: State Responses to Data Center Water Use," finds states are taking a piecemeal approach, with policies falling into four primary buckets:
- Reporting: Requiring operators to disclose annual water use.
- Conservation: Limiting potable water use or setting efficiency standards.
- Incentives: Rewarding water-saving cooling technologies with tax breaks or grants.
- Water rights: Requiring new facilities to comply with state water allocation systems.
What they're saying: "AI is accelerating data center growth at a pace that traditional water planning was never designed to handle," said CU Boulder water law fellow Daniel Anderson, a co-author of the report.
State of play: A bill that would have addressed limits on data centers died in the Colorado legislature this year.
Zoom in: Longmont has gone further than many Front Range communities, capping how much energy data centers can use.
- Meanwhile, others have adopted temporary moratoriums, including Boulder County and Broomfield, while officials consider longer-term solutions.
What we're watching: Pressure to rein in data centers is spreading — and broader state and federal action may not be far behind.
- New York Gov. Kathy Hochul this week signed the nation's first statewide temporary moratorium on new data centers.
- Sen. Bernie Sanders (I-Vt.) and Rep. Alexandria Ocasio-Cortez (D-N.Y.) have also proposed legislation to pause new projects nationwide.