US Data Centers' Water Use Projected to Quadruple by 2028 Amid Scarcity Concerns

A recent report highlights the growing challenge of water scarcity driven by data centers and prolonged drought conditions. The report suggests that reusing treated industrial discharge onsite could help mitigate the impact of these factors.

As data centers continue to expand, particularly in water-scarce regions, policymakers and industry leaders are exploring various strategies to address the rising demand for water. In the U.S., data centers’ water usage is expected to increase significantly from 17.4 billion gallons in 2023 to 72.6 billion gallons by 2028.

The Environmental Protection Agency’s 2026 water-reuse plan, involving key players like Amazon Web Services, is aimed at overcoming regulatory barriers to recycled-water cooling.

Key Takeaways

• The report emphasizes the urgency of water issues exacerbated by data centers and drought, suggesting a need for alternative solutions.
• Market pricing suggests increased legislative pressure for a data center moratorium in Oklahoma, reflecting growing sentiment on the issue.
• Reuse of treated industrial discharge is being considered as a practical measure to alleviate water scarcity, indicating a trend towards sustainable practices.

What to Watch

• Legislative actions in Oklahoma, where discussions on a potential moratorium on data centers are gaining attention, will be crucial.
• The involvement of key figures like Governor Kevin Stitt and the Oklahoma Legislature will be significant in determining the outcome.
• Developments such as the filing of a state bill or public endorsements for a pause on data center construction could impact market perceptions.
• Statements from major utilities or water districts regarding the issue could influence policy decisions.