Artificial intelligence data centers are driving a massive surge in indirect water consumption as power plants consume enormous volumes of resources to generate electricity for servers. While developers increasingly tout new technologies to slash onsite cooling water in drought-stressed regions like Arizona, offsite resource demands from power generation remain largely unaddressed.
Power Plants Consume Billions of Gallons for AI Electricity
Computing-intensive artificial intelligence facilities can consume 10 times the electricity of conventional data centers. Most of this energy powers servers, requiring fossil-fueled and nuclear power plants to use large amounts of water to produce steam for turbines. Calculations by University of Michigan experts indicated that indirect offsite water requirements would increase the combined yearly usage of three prospective AI data centers in the state by 14 billion gallons. Shaolei Ren, a professor at the University of California at Riverside who studies data center water consumption, noted that indirect usage is often significantly higher than direct usage and heavily impacts watersheds.
Estimates Range From Billions to Trillions Across the United States
National estimates for annual indirect water use vary depending on the methodology and scope. A 2024 Lawrence Berkeley National Laboratory study calculated U.S. data center indirect water use at 211 billion gallons. Meanwhile, an analysis from the environmental nonprofit Ceres placed the figure as high as 4 trillion gallons. This upper estimate is enough to supply nearly 37 million average U.S. households per year.
Arizona Officials Face Severe Local Constraints
In drought-stressed regions like Arizona, where the federal government announced a 27% cut to state water allocations from the drying Colorado River, developers are deploying air-chilled coolers to reduce onsite water use. However, Kerri Hickenbottom, an associate professor of engineering at the University of Arizona, co-authored a 2025 study showing that air-cooled systems in the Phoenix area can drive indirect water consumption to more than 2.5 times that of water-cooled chillers due to higher electricity demands.
Technology Providers Wrestle With Reporting Gaps
Major tech firms report mixed approaches to tracking and disclosing indirect water footprints. Brandon Oyer, head of energy and water for Amazon Web Services, stated that the industry needs alignment on a standard protocol to collectively report indirect consumption. Amazon.com Inc. reported a 52% improvement in water efficiency since 2021 through advanced cooling designs. Ben Townsend, head of infrastructure strategy and sustainability at Google, stated that the company does not currently report indirect water use, focusing instead on powering data centers with wind, solar, and storage projects. Meta Platforms Inc. reported that indirect use accounted for roughly 96% of its 21 billion gallons consumed in 2024, marking a 120% increase from 2021, according to its latest sustainability report.
Frequently Asked Questions
Why do AI data centers use more water offsite than onsite?
AI facilities can consume 10 times the electricity of conventional data centers, requiring fossil-fueled and nuclear power plants to use large amounts of water to produce steam to run turbines.
How much water do planned data centers require in the state?
An evaluation by University of Michigan scientists projected that offsite indirect water demands would elevate the aggregate annual usage for three planned AI hubs in the state by 14 billion gallons.
What is the primary reason tech developers do not report indirect water use?
Brandon Oyer, head of energy and water for Amazon Web Services, stated that there is no standard protocol for calculating data centers’ indirect water use, making industry alignment necessary for collective reporting.
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