Not only is AI energy-intensive to operate—it’s also thirsty. The data centers that keep it running can consume up to five million gallons of water daily at the largest facilities,² and with more than 5,400 data centers in the U.S., that adds up to billions of gallons annually.³ Data centers power many computing tasks, but AI is a leading driver of their growth, and its water footprint is slipping under the radar.^{4 5}

The electricity that fuels data center servers constantly generates heat⁶ and to keep the systems from overheating, many facilities rely on water-intensive evaporative cooling systems.^{7 8} These systems primarily use fresh water, with about 80 to 90 percent drawn from public supplies.^{9 10 11 12} Rather than recycling that water back into the supply, it’s evaporated into the atmosphere.^{13 14} Meanwhile, as droughts and water shortages increase across the country, data centers are tapping into critical sources, including underground aquifers.¹⁵

So, if heat and water are both significant factors in data center operations, why are tech companies flocking to the desert to build them? A Business Insider investigation, published in June 2025, finds that roughly 40 percent of U.S. data centers are in regions classified as “extremely high” or “high” water scarcity by the nonprofit World Resources Institute.¹⁶ The companies with the heaviest footprint in these areas are Amazon, with 81, and Microsoft, with 23, while Meta and Google each have nine.¹⁷ Meanwhile, Arizona, which has been in an extended drought since the 1990s, is one of the country’s leading data center markets.¹⁸

Tech companies are drawn to arid regions for cheap electricity, plentiful land, and hearty tax incentives.^{19 20} “Water is an afterthought,” Newsha Ajami, director of urban water policy at Stanford, told The New York Times this year, adding that companies assume they can figure it out later.²¹ In the meantime, Microsoft and Meta are making deals with local governments in the Phoenix area to use up to three and four million gallons per day, Business Insider reports.²²

Unfortunately, there’s little transparency about data center water consumption, and no federal laws to regulate it.^{23 24} Only half of data center operators track their water use, and estimates rely on voluntary disclosures, public records, and expert knowledge of operations.^{25 26 27 28}

Real world consequences

In July 2025, The New York Times reported on challenges arising in Newton County, Georgia, a growing data center hotspot.²⁹ A recently opened Meta facility currently consumes around 10 percent of the county’s total daily water use.³⁰ Now, nine other companies are applying for permits in the region, some requesting up to six million gallons a day—more than the entire county’s daily use.³¹ Meanwhile, Newton County faces a projected water deficit by 2030.³²

Water for cooling data centers is just a fraction of AI’s true water footprint. A 2021 research paper, from Virginia Tech and the Lawrence Berkeley National Laboratory, found that 75 percent of data centers’ water impact is from electricity generation.³³ More than 50 percent of this electricity is fossil fuel-derived, created by steam-generating power plants;³⁴ that added up to 200-plus billion gallons of indirect water consumption by data centers in 2023, per a federal report.³⁵

Tech companies are making bold pledges to rebalance the scales of their water consumption, even as they continue to build data centers in water-stressed regions.³⁶ Yet, for some of the biggest names, like Google and Microsoft, water use continues to increase year-over-year, reaching billions of gallons annually. Considering that just three percent of Earth’s water is fresh, and only about 0.5 percent is safe and accessible for human use, and with much of the U.S. already experiencing long-term droughts,³⁷ perhaps it’s worth considering, is that AI query really worth it?

References

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