The Real Water Cost of AI Isn't Inside Data Centers. But Tech Companies Don’t Report It. | More Perfect Union

The Gist

AI data centers consume massive amounts of water indirectly through electricity generation, up to ten times more than the water used inside the facilities themselves. Tech companies downplay this footprint while securing massive water allocations in drought-stricken regions like El Paso, Texas.

Quick Overview

Big Tech companies are building massive data centers in drought-stricken areas of the American West, severely underreporting their true water consumption by ignoring the immense water footprint of electricity generation. Despite community backlash, municipal water boards, and legal battles over transparency, local officials continue to subsidize these corporations while raising water rates on residents.

Key Points: About two-thirds of new U.S. data centers are currently being constructed in drought-prone areas. Alex de Vries-Gao's research reveals that indirect water consumption from electricity generation is roughly ten times higher than the water used directly inside data centers. Meta's 2025 indirect water footprint reached 72,207,000 gallons, which is 24 times larger than its direct consumption. In El Paso, Texas, Meta's new data center could account for up to 43 percent of the city's peak electric load when fully operational. El Paso Water has increased city water bills for eleven consecutive years, culminating in a double-digit rate increase in 2026. An El Paso city council vote passed five to three to keep the Meta contract despite fierce resident protests. A recent UN report warns that AI electricity consumption in 2025 alone had a water footprint of 1.2 trillion gallons.

Context: Water scarcity in the American West has intensified tensions between local communities, agricultural sectors, and incoming heavy industries. The rapid expansion of artificial intelligence and cloud computing has triggered a data center building boom, leading to intense debates over local resource allocation, transparency, and corporate subsidies.

Detailed Analysis

Tech companies are flocking to the American West for cheap land, tax breaks, and power, promising low direct water usage through closed-loop and evaporative cooling systems. However, researchers like Alex de Vries-Gao demonstrate that focusing solely on direct facility usage misses the vast water footprint required to generate the immense electricity these data centers demand. In locations like El Paso, Texas, and Santa Teresa, New Mexico, projects like Meta's data center and Oracle and OpenAI's Project Jupiter are straining local aquifers and agricultural communities. Local residents and organizers face closed-door negotiations, non-disclosure agreements, and police removal from public meetings while municipal leaders approve massive water and tax incentives for tech oligarchs, passing the infrastructure cost onto everyday citizens through consecutive years of water rate hikes.