Data Centers' Water Usage: A Hidden Threat to California's Water Security (2026)

In the world of data centers, a critical issue has been brought to light: the lack of transparency surrounding water usage. A recent report by Next10 and researchers from Santa Clara University has shed light on this murky situation, revealing a concerning trend.

The report highlights how data center builders, the backbone of our artificial intelligence infrastructure, are expanding into regions already struggling with water scarcity. This expansion is happening under the radar, with little to no public disclosure of their water consumption.

Irina Raicu, director of the Internet Ethics program at Santa Clara University, puts it bluntly: "We have this huge build-out, and we have very little data." This lack of information is particularly worrying given California's fragile water situation.

What makes this issue even more complex is the patchwork of policies at the state, federal, and local levels. These policies allow data center operators to avoid disclosing their water usage, creating a situation where communities, water providers, and researchers are left in the dark.

When Raicu and her colleague, Iris Stewart-Frey, tried to access environmental impact reports for California's data centers, they found almost none. The few they did locate were primarily for facilities in Santa Clara, leaving a significant gap in our understanding of the industry's environmental footprint.

Through their research, Raicu and Stewart-Frey discovered that projects can bypass environmental reviews if they meet certain size or water use thresholds. This loophole, known as ministerial approval, allows planning agencies to approve projects without a thorough assessment of their potential impacts.

Even for data centers that do undergo environmental scrutiny, the documentation is often not publicly available. When it is, the information is frequently missing, contradictory, or vague, making it difficult to assess the true scale of water usage.

The report also highlights the shift of data centers to vulnerable regions, such as Gilroy in Santa Clara County and the agricultural Imperial Valley. These areas, already facing water challenges, are now at risk of being further strained by the water-intensive operations of data centers.

While the industry claims to be "committed to being a good neighbor," their opposition to bills mandating more detailed water-use reporting raises questions. The argument that data centers use less water than other industries misses the point—it's the local impact that matters most.

As Stewart-Frey notes, "Communities should know what they're getting themselves into." The lack of transparency and the potential for significant local impacts have led to debates and opposition in communities like Kern County and Monterey Park.

Assemblymember Diane Papan, a Democrat from San Mateo, is leading the charge to bring transparency to the industry. Her bills aim to require data center operators to report water usage and to prohibit development in overdrafted groundwater basins.

Papan's efforts face strong opposition from the tech industry, but she stands firm: "You cannot manage what you have not and cannot measure."

This issue is a reminder of the importance of transparency and the need for a balanced approach to development. As we continue to rely on data centers for our digital lives, we must ensure that their environmental impacts are carefully considered and managed.

Data Centers' Water Usage: A Hidden Threat to California's Water Security (2026)
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