Tech's Water Woes: How Data Centers Are Learning to Cool Without Drying Up the Planet

Why Water Matters in Data Centers

When you think of a data center, you probably picture rows of servers humming away in sterile rooms. But what you might not realize is that these facilities are also major consumers of water — and not just for making coffee or keeping the air cool.

For tech giants like Google and Microsoft, the question has become: how do we keep our servers running efficiently while minimizing our impact on local water supplies?

This issue isn't new. But it's become more urgent as climate change intensifies droughts and water scarcity in key regions. What's especially striking is that data centers are increasingly being met with public resistance — not just for their carbon footprints, but for their water usage.

"Water is a highly local, highly regional issue," says Shaolei Ren, an engineering professor at UC Riverside. "It's a limited resource, and we have to manage it very carefully."

The Cool Factor: How Data Centers Use Water

Data centers generate enormous amounts of heat — so much so that cooling systems are critical to their operation. The most common method involves using water to absorb the heat from server racks, which is then recirculated or evaporated in cooling towers.

One widely used approach is evaporative cooling. It's efficient and relatively low-cost — but also incredibly water-intensive. In fact, Google's data center in Council Bluffs, Iowa, consumed over a billion gallons of water in 2024 alone.

This isn't just a U.S. problem. A 2024 report from Lawrence Berkeley National Laboratory predicts that if all hyperscale data centers rely heavily on evaporative cooling, they could consume up to 33 billion gallons of water by 2030 — a staggering amount even when compared with other industries like oil and gas.

Public Pushback and Political Pressure

With public awareness rising, many communities are pushing back against data center developments. A Gallup poll found that seven out of ten Americans oppose data center development, with water scarcity topping the list of resource concerns.

SpaceX's recent IPO filing even included a warning about how water conditions could constrain expansion plans. It's a sign that companies are beginning to see water issues not just as environmental challenges, but as potential business risks.

Google's Approach: Water Replenishment and Smart Cooling

In response to criticism, Google has taken a multi-pronged approach. Rather than completely eliminating evaporative cooling, the company is focusing on sustainability through replenishment — investing in local water projects to offset its usage.

Google also commits to using more reclaimed and recycled water and publishing annual reports detailing how much water its data centers use. Most importantly, it's implementing a data-driven framework for choosing cooling technologies based on regional watershed conditions.

Ben Townsend, Google's global head of infrastructure and sustainability, explains: "Water is scarce in some regions and plentiful in others. A one-size-fits-all strategy just doesn't work."

Other Big Players Are Taking Action Too

Microsoft, Oracle, and OpenAI are also moving away from evaporative cooling in water-stressed areas — a decision that reflects a broader industry shift.

But even as these tech titans attempt to reform their practices, they still face significant challenges. For instance, Microsoft's internal records indicate that its water use is projected to increase dramatically, despite efforts to reduce it.

And in Chile, Google had to pause plans for a new data center after local courts partially revoked its permits over water concerns — highlighting the growing legal complexities around resource use.

The Trade-offs: Power vs. Water

There's no perfect solution. Using less evaporative cooling often means relying more on electricity, which can increase carbon emissions — especially in regions where power comes from fossil fuels.

Shaolei Ren and his team at UC Riverside have shown that if all U.S. data centers adopted evaporative cooling during peak demand, they could free up between 10 to 30 gigawatts of power — valuable capacity for utilities dealing with high electricity loads in the summer months.

But balancing these trade-offs is no small task. As Priscilla Johnson, a former Microsoft water strategy director, notes: "The industry has to be challenged to design smarter and simplify things."

A New Era of Accountability

One of the most encouraging developments is that tech companies are now starting to disclose their water use publicly. Google began doing so in 2023, and other firms are following suit.

This transparency is crucial — especially when public pressure has historically driven change in industries like agriculture and manufacturing. As more people become aware of the hidden costs of digital infrastructure, accountability will play an even larger role.

We're entering a new chapter where data centers aren't just about performance and profit. They're also about resilience, responsibility, and rethinking what it means to build for the future — with water as a key factor in that equation.