Water Behind the Watts: The Hidden Risk of Powering Data Centers

As artificial intelligence drives rapid data center expansion, the electricity needed to power these facilities is creating a significant but often overlooked demand for water. This Ceres report examines the water required to generate electricity for data centers across seven major U.S. markets. It finds that data centers in these states depend on roughly 3.4 trillion gallons of freshwater annually for electricity, with many power plants operating in areas facing water stress or drought. The report explores how energy sources, power generation, and local water conditions affect risk and provides recommendations for data center operators, utilities, policymakers, and investors to improve water resilience and support responsible growth.