Data centers' water use at issue

Amid AI boom, California bill would require the facilities to report their annual consumption

- BY JAN JAMES

PAUL KURODA For The Times

MUCH of the nation's data center boom is taking place in arid states such as California and Arizona.

Companies that run data centers are facing increasing scrutiny for guzzling water as the rise of artificial intelligence and massive investment in cloud computing drive a construction boom.

The centers, which generate lots of heat, can require huge amounts of water to cool their servers and interiors.

Yet, while water needs soar, many companies do not disclose how much they use.

Google, for one, does list water data for three dozen data centers around the world in its latest annual environmental report, saying a single site can use more than 3 million gallons per day, with some using far less, depending on cooling design and size. But most of the data centers in the report were not in the dry western United States, where much of the industry's build-out is happening, and where water is already under stress.

California legislators are taking an initial step toward tackling the water problem by requiring data centers to report their water use annually. The legislation, approved this month, is now awaiting Gov. Gavin Newsom's signature.

"Data centers are popping up all over the place," said Assemblymember Diane Papan (D-San Mateo), the bill's author.

“And they demand so much water.”

If Newsom signs the bill, California would be among the first states to require water disclosure. New Jersey also has a bill before Gov. Phil Murphy, and similar legislation has been introduced in New York. In Arizona, the state has long required water information from large-scale facilities including data centers in urban areas, and they have to meet water efficiency standards as well.