California dodges questions on datacenter water usage

The issue

California’s booming data-center industry has raised questions about how much water server farms need, especially as the AI-driven expansion sends demand higher.

Communities and environmental advocates are pressing for more local data about water consumption to better weigh tech growth against strained regional supplies.

Datacenters consume huge water

Data centers’ water use varies widely by size and cooling method, but investigations and industry analyses show some large facilities may use millions of gallons of water per day at peak, and annual site-level totals can reach into the millions or hundreds of millions of gallons.

Cooling method (evaporative vs. air or closed-loop liquid cooling) and local sourcing determine the real impact.

California’s drought and demand

Recurring droughts have made water conservation a top priority across California. Datacenter expansion adds pressure to already-strained water systems.

Many regions rely on reservoirs and aquifers that are struggling to recover. This tension raises concerns about the sustainability of supporting water-intensive facilities in a dry state.

Proposed disclosure legislation fails

Assembly Bill 93 (AB 93), authored by Assemblymember Diane Papan (D–San Mateo), passed the Legislature but was vetoed by Gov.

Gavin Newsom in October 2025; Newsom said the measure needed more study and coordination with existing policies rather than immediate, rigid reporting mandates.

Newsom vetoes transparency bill

Governor Gavin Newsom vetoed a bill that would have mandated reporting water use at datacenters. His office cited the need for further study and coordination with existing policies.

Environmental groups criticized the move as a setback for transparency. The veto left questions about oversight unresolved.

Opposition arguments revealed

Tech companies and data industry groups argued that public disclosure could mislead or harm competitiveness. They claimed water usage varies widely by region, cooling type, and season.

Some insisted their sustainability efforts already offset environmental impacts. Still, watchdogs argue this secrecy undermines accountability.

Environmental concerns rise

Advocacy groups warn that hidden water consumption contributes to ecological strain. They emphasize the impact on local communities facing restricted water access.

The growing number of AI and cloud data facilities heightens these risks. Without transparency, it isn’t easy to measure true environmental costs.

Water usage effectiveness metric

Some datacenters use “Water Usage Effectiveness” (WUE) as a key performance metric. It measures how efficiently water is used for cooling per unit of energy consumed.

While WUE is widely recognized as a useful benchmark, companies report it inconsistently (different timeframes, calculation methods, or regional exclusions), so public WUE figures are not always comparable across facilities.

Cooling methods explained

Most data centers rely on evaporative cooling, which directly consumes water. Others use air cooling or hybrid systems to reduce their dependence on water.

While air cooling is less water-intensive, it can be more energy-hungry. Companies are exploring liquid and immersion cooling to balance both needs.

Potable vs recycled water

Some operators use potable water, while others rely on recycled or non-potable sources. Using recycled water can reduce stress on local drinking supplies.

However, the availability of reclaimed water depends on the city’s infrastructure. In drought regions, even recycled sources are limited and heavily regulated.

Local water stress impacts

Communities hosting data centers often experience competition for limited water. Local farmers and residents may face restrictions during drought seasons.

When data centers draw heavily from municipal supplies, tensions can rise. This issue highlights the need for equitable water distribution policies.

Tech firms’ secrecy problem

Many large cloud operators publish corporate sustainability reports or high-level water-efficiency metrics, but few disclose consistent, site-level water-consumption figures publicly, a gap that watchdogs say prevents meaningful local accountability.

Critics argue that such secrecy conflicts with their public sustainability pledges. Transparency is increasingly viewed as essential for corporate responsibility.

Regulatory gap consequences

Because California lacks a uniform, statewide requirement for site-level data-center water reporting, oversight relies on voluntary disclosures and local permitting; that patchwork can leave planners and communities without the information they need.

Environmental agencies rely on voluntary reporting, which limits data accuracy. Stronger standards could help balance growth with conservation efforts.

Alternatives and solutions

Experts recommend shifting toward renewable-powered and air-cooled datacenters. Expanding reclaimed water infrastructure could also ease stress on municipal systems.

Policy incentives could encourage companies to invest in sustainable cooling. Public-private collaboration will be key to long-term solutions.

Public accountability needed

Environmental watchdogs argue the public deserves clear information about resource use. Transparent data helps citizens understand trade-offs and hold industries accountable.

Without disclosure, trust in both corporations and regulators erodes. Stronger transparency laws could ensure environmental justice and fairness.

The deal marks one of Meta’s largest AI infrastructure investments yet. Check out how Meta and Entergy are joining for $10 AI data center.

Key takeaways

California’s struggle to regulate datacenter water use reflects a wider global challenge. As digital infrastructure grows, sustainability must remain a core priority.

The debate over disclosure is not just about numbers; it’s about ethics and balance. The future of tech will depend on how wisely we manage shared resources.

Apple’s secret resource revealed. Check out why Apple spends $500M to secure rare resources from a California mine.

Do you think tech companies should be legally required to disclose their data center water usage in drought-prone states like California? Share your thoughts.

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This slideshow was made with AI assistance and human editing.