Data centers' water use a concern in Minnesota
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Minnesota's boom in data centers is part of a trend that has big tech companies targeting the Midwest for its cool air and abundant water.
Why it matters: Data centers power the AI boom — but there's growing concern about their soaring energy and water demands.
State of play: Columbus and Chicago remain the region's primary data center markets. But companies are increasingly eyeing the Twin Cities, Pittsburgh, Des Moines and parts of Indiana, where land is cheaper and energy is more available, says Andy Cvengros of real estate firm JLL.
- Cooler Midwest temperatures and proximity to the Great Lakes reduce the need for energy-intensive cooling — an advantage over Southern states.
Yes, but: Local governments frequently sign nondisclosure agreements with tech firms, limiting public knowledge of energy and water use, says Helena Volzer of the nonprofit Alliance for the Great Lakes.
- Less than one-third of data centers track water consumption, according to a 2021 study in NPJ Clean Water.
Zoom in: Data centers' water use can vary widely depending on what kind of cooling system they use.
- A proposed Farmington data center could use the same amount of water daily as 11,600 homes, though the developer says it would not use that much every day, according to the Star Tribune.
- Others are implementing refrigerant-based technology that doesn't use water, but requires significant electricity, the paper reported.
The other side: Our world is growing increasingly digital, and the data needs to go somewhere. U.S. households had an average of 21 digital devices in 2023, per a Deloitte survey.
- As companies build to meet that surging demand, energy is a "significant cost driver," so it's in their best interests to be efficient, Dan Diorio, senior director of state policy for the Data Center Coalition, tells Axios.
What we're watching: DFL lawmakers have introduced a bill that will allow the DNR more scrutiny over water consumption by data centers.