US datacenters tripled their water footprint in 10 years

In 2023, datacenters in the United States consumed approximately 17 billion gallons of water, a threefold increase from the 2014 figure, according to an estimate from the US Congressional Research Service (CRS). The report, published by the Library of Congress, examines the water usage of server farms, explores potential reduction strategies, and discusses the current federal oversight role.

The CRS highlights that the federal government lacks a systematic approach to evaluating water usage across the industry, mainly due to water data being collected primarily by state-level entities. The rise in AI-driven datacenter construction since the launch of OpenAI's ChatGPT in late 2022 has contributed to this surge in water consumption.

These new facilities often house specialized AI hardware, which necessitates greater cooling and, consequently, increased water usage. While water use directly within datacenters represents only about 2 percent of total US water consumption, indirect water consumption through electricity generation accounts for over 80 percent. The report emphasizes that cooling systems vary based on the size, location, and thermal regulation requirements of the facility, with liquid cooling systems being potentially more efficient but not always cost-effective for smaller sites.

The majority of water supplied to US datacenters comes from municipal drinking water systems, constituting 97 percent of the supply. Water utilities often report usage data to state or local agencies, but the federal government has not conducted a comprehensive assessment of datacenter water usage, primarily because water provision is a state responsibility.

The CRS cites several federal bills introduced to address datacenter water use, focusing on improving available data and incentivizing practices like water reuse, though none have progressed beyond the introduction stage. Meanwhile, at the state level, 36 out of 52 legislatures have proposed water-related legislation for datacenters, with California and Arkansas having vetoed some proposals.

At the federal level, 20 bills are currently active, with only three having moved beyond the referral stage. Internationally, the European Union mandates datacenter operators to report annual freshwater consumption, though the Commission has faced criticism from the industry due to the proposed environmental rating system's perceived burdensomeness.