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AI-driven data centers are growing in the drought-stricken Mountain West, analysis finds

This is a wide-angle image of a data center construction site. Three cranes of differing heights stretched into the clear blue sky.
Eduardo Barraza
/
Adobe Stock
The Meta Mesa Data Center's five-building campus under construction in Mesa, Ariz., in 2023.

A new analysis shows more than two-thirds of data centers built – or in development – since 2022 are in drought-prone areas, including parts of the Mountain West. Experts warn this could strain water supplies for cities and farmers.

Data centers, which power AI tools and cloud services, use massive amounts of water to cool servers so they don’t overheat. An average-sized data center uses about 2 million liters of water per day, roughly the same amount as 6,500 households, according to an April report from the International Energy Agency.

A Bloomberg analysis found companies are drawn to Western states for tax breaks and renewable energy sources – primarily solar – to power their facilities. Water availability, however, is one of the last considerations for data center operators, the report argues.

That means data centers could stress local water supplies because they need water 24/7, said Newsha Ajami, a Stanford research fellow who was not involved in the report.

“I see them sort of like permanent crops,” Ajami said. “You put them in there, you have to continuously water them, right? So it doesn't provide that flexibility that's needed, especially during dry or drought periods.”

According to Data Center Map, there are 3,755 data centers across the U.S. In the Mountain West, the majority are in Arizona (138), followed by Nevada (56), Colorado (55) and Utah (43). Rounding out the region are New Mexico (21), Wyoming (13), Idaho (9), and Montana (3).

As the use of AI and cloud services continues to rise, the demand for data centers – and water – isn’t slowing down. Bloomberg estimates nearly 60 more facilities will be built in drought-prone areas by 2028.

This story was produced by the Mountain West News Bureau, a collaboration between Wyoming Public Media, Nevada Public Radio, Boise State Public Radio in Idaho, KUNR in Nevada, KUNC in Colorado and KANW in New Mexico, with support from affiliate stations across the region. Funding for the Mountain West News Bureau is provided in part by CPB.

Kaleb is an award-winning journalist and KUNR’s Mountain West News Bureau reporter. His reporting covers issues related to the environment, wildlife and water in Nevada and the region.