How regional water scarcity is making food, energy, AI, and industrial growth more expensive and where investors will see the consequences
Data centers use large amounts of water, mainly for cooling (evaporative cooling towers, humidification, etc.). Studies show:
Water use per kWh of compute can vary by over 1,000× depending on cooling technology, climate, and grid mix.
In the U.S., about two‑thirds of new data centers since 2022 are in areas with high water stress.
Communities report conflicts over water access, rising utility costs, and reduced resilience during droughts and heatwaves
Human impacts include:
Competition with households, agriculture, and ecosystems for scarce water.
Higher water bills and reduced flexibility for local users when data centers lock in large, long-term water contracts.
Data centers use large amounts of water, mainly for cooling (evaporative cooling towers, humidification, etc.). Studies show:
Water use per kWh of compute can vary by over 1,000× depending on cooling technology, climate, and grid mix.
In the U.S., about two‑thirds of new data centers since 2022 are in areas with high water stress.
Communities report conflicts over water access, rising utility costs, and reduced resilience during droughts and heatwaves
Human impacts include:
Competition with households, agriculture, and ecosystems for scarce water.
Higher water bills and reduced flexibility for local users when data centers lock in large, long-term water contracts.