California’s AI Boom Targets Drought-Hit Communities for Data Centers

Tech companies relocate data centers from Silicon Valley to drought-prone agricultural regions, threatening local water supplies

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Image: Public Policy Institute of California

Key Takeaways

Key Takeaways

  • Data center water consumption surged 96.4% between 2019 and 2023 statewide
  • Tech giants relocate facilities from cities to drought-vulnerable agricultural communities
  • California requires no water usage reporting from AI data centers

Data center water consumption surged 96.4% between 2019 and 2023, and the newest facilities aren’t landing in Silicon Valley anymore—they’re headed straight for communities already struggling with groundwater depletion. This digital expansion creates a troubling intersection where tech’s water appetite meets California’s most vulnerable regions.

Tech Giants Flee Cities for Water-Stressed Valleys

A comprehensive Next 10 report reveals that AI data centers are abandoning urban tech hubs for regions dependent on shared groundwater and imported water. The shift amplifies stress on already overtaxed systems. One proposed Imperial Valley facility alone would guzzle 750,000 gallons daily—enough water for thousands of households in a region where wells run dry and aquifers shrink annually.

The pattern represents a fundamental shift in how tech companies approach infrastructure. Rather than competing for expensive urban real estate, they’re pursuing cheaper land in agricultural areas where water rights and environmental oversight prove less stringent.

The Hidden Cost of Cloud Computing

Statewide data center water consumption could reach 74.54 to 116.63 billion liters by 2028—up to 358% above 2019 levels. Meeting electricity demands for proposed centers requires $200-800 million in infrastructure upgrades. Streaming habits and ChatGPT conversations are quietly reshaping California’s water map, moving digital thirst from tech campuses to farming communities that can least afford the competition.

These figures reveal the true scope of AI’s environmental impact. Every search query, every cloud backup, every automated process demands cooling systems that consume water at industrial scales.

Industry Operates in Information Darkness

California has no requirements for AI data centers to report water usage, according to the Next 10 analysis. “Efficiency claims mean little without transparency,” researcher Iris Stewart-Frey notes. “We do not have much wiggle room.” The state’s fragmented permitting system lets facilities bypass comprehensive water impact assessments, leaving communities guessing about their digital neighbors’ true consumption.

This opacity prevents meaningful planning and accountability. Without baseline data, communities cannot negotiate fair terms or prepare for cumulative impacts on local water supplies.

Solutions Exist But Adoption Lags

Air cooling, liquid immersion systems, and reclaimed wastewater offer paths forward—yet two-thirds of U.S. data centers built since 2022 still landed in water-stressed areas. The technology exists to reduce data centers’ water footprint dramatically. Implementation just requires acknowledging that cloud storage shouldn’t drain someone else’s well.

“Without stronger safeguards, this growth risks compounding existing inequities,” warns Next 10 founder F. Noel Perry. Translation: The communities powering digital life deserve transparency about what that convenience costs them.

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