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Panel of tech analysts points to a U.S. map on a screen, highlighting California’s drought zones and alternative sites.

Editorial illustration for Data Centers Face Water Crunch: Experts Urge California Expansion Rethink

Data Centers Face Water Crisis in California Tech Hub

Experts advise locating new US data centers outside water-stressed California

Updated: 2 min read

The booming tech industry's hunger for data centers is running headlong into a critical environmental constraint: water scarcity. California, long a tech hub, now faces mounting pressure to reconsider its data center expansion strategy as experts warn of increasing strain on already limited water resources.

New research suggests the state's water challenges could become a serious roadblock for continued digital infrastructure growth. Tech companies have traditionally flocked to California for its strong technological ecosystem, but the environmental math is changing fast.

Water consumption by massive data centers, which require significant cooling systems, is emerging as a key sustainability challenge. These facilities can use millions of gallons daily, putting immense pressure on regional water supplies already stressed by prolonged drought conditions.

The stakes are high. As digital infrastructure becomes increasingly critical to economic and technological progress, finding a balance between technological expansion and environmental sustainability has never been more urgent.

Conversely, California's long-running water issues may cause a problem if data centers keep expanding there. (In October, Governor Gavin Newsom vetoed a bill that would have required data center operators to disclose how much water they use, claiming that the state is "well positioned to support the development" of data centers.) Data center operators choose locations based on a variety of factors, including energy and water needs. But they're not the only inputs: Arizona, which has more than 160 data centers, is named in the analysis as one of the states facing "severe water scarcity issues." The industry has no plans to move out of some of their favored areas: There are still massive projects planned for Virginia, including a $9 billion investment from Google announced in August.

California's data center expansion looks risky. Water scarcity threatens the state's tech infrastructure, yet state leadership seems oddly unconcerned.

Governor Newsom's recent veto of a transparency bill signals a troubling disconnect. By blocking mandatory water usage disclosure, he's neededly giving data center operators a free pass.

The water crunch isn't theoretical. Experts are urgently recommending data centers relocate outside water-stressed regions like California. This isn't just an environmental issue - it's an economic and technological challenge.

Location selection for data centers has always been complex. Water needs now join energy requirements as critical decision factors. Arizona, with over 16 data centers, might represent a more sustainable alternative.

California's confidence feels misplaced. "Well positioned to support development" rings hollow when water resources are increasingly constrained. The state risks becoming less attractive to tech companies prioritizing sustainable infrastructure.

The message is clear: transparency, resource management, and strategic planning must supersede unchecked growth. Data centers need a serious water reckoning.

Further Reading

Common Questions Answered

How are data centers impacting California's water resources?

Data centers are placing significant strain on California's already limited water supply, creating potential environmental challenges for the state's tech infrastructure. The growing demand from tech companies is exacerbating existing water scarcity issues, prompting experts to urge a reconsideration of data center expansion strategies.

What did Governor Gavin Newsom do regarding data center water usage transparency?

In October, Governor Newsom vetoed a bill that would have required data center operators to disclose their water consumption, claiming California is well-positioned to support data center development. His veto effectively prevents mandatory reporting of water usage by data center facilities in the state.

Why are experts recommending data centers relocate from California?

Experts are urging data centers to move outside water-stressed regions like California due to the increasing water scarcity and potential long-term environmental constraints. The growing tech infrastructure is creating unsustainable pressure on the state's limited water resources, making alternative locations more viable for future data center development.