Data Centers & Water Scarcity: Expanding Digital Economy's Environmental Footprint

I have been thinking about this several times, but never actually in the way that data centers and water scarcity are interconnected. In today’s hyperconnected world, we rarely stop to think about what powers our emails, social media, cloud storage, and artificial intelligence tools. Behind the digital conveniences of modern life lies a vast, physical infrastructure: data centers. These digital factories, essential to everything from streaming movies to managing banking systems, are quietly reshaping not just the digital world but also our natural ecosystems. While public debate has long centered on the energy consumption of data centers, a lesser-known but equally pressing issue is emerging: their impact on global water resources.

💡 What Do Data Centers Need Water For?

How much water do data centers need? Data centers generate enormous amounts of heat as servers operate continuously. To keep them functioning optimally, they must be cooled continuously, but how?. Many data centers utilize evaporative cooling systems, which consume substantial volumes of water, typically ranging from millions to tens of millions of liters per day, depending on the data center's size, location, and design.

Water is used in two primary ways:

• Direct water use, mostly in cooling towers, where heat is dissipated through evaporation.

• Indirect water use, through electricity generation, especially in regions where thermal power (coal, gas, or nuclear) dominates the grid.

  
  

Although evaporative cooling is often more energy-efficient than traditional air cooling, the trade-off is higher water consumption, raising concerns in water-stressed regions.

Data centers generate enormous amounts of heat as servers operate continuously.

🌍 A Global Issue with Local Consequences

As the digital economy expands, so does its environmental footprint. Data centers are increasingly being built in regions already suffering from water scarcity, exacerbating existing tensions between industries, agriculture, and communities.

Europe: Digital Growth in a Drying Continent

In Spain, Meta (Facebook) plans a large-scale data center campus in Talon, Toledo, a region where water shortages are becoming the norm due to rising temperatures and over-extraction. While tech investment brings jobs and development, critics argue that the strain on local water infrastructure hasn’t been properly evaluated.

In the Netherlands, water usage for data centers has sparked public concern. In Zeewolde, Microsoft’s data center reportedly used more water than disclosed, leading to calls for stricter regulations and transparency. Meanwhile, Ireland, home to a dense cluster of data centers (especially around Dublin), has faced increased stress on both power and water grids, prompting debates about national digital infrastructure planning.

South America: Droughts, Inequality, and Digital Demand

In Brazil, where large cities like São Paulo have experienced severe droughts, data centers are becoming part of a broader discussion around urban resource management. While some newer facilities are opting for air-cooled systems, others rely heavily on water. Brazil’s regional inequalities mean that competition for water in densely populated areas could intensify, particularly if tech hubs continue expanding near cities with aging infrastructure.

Chile, a growing tech hub in Latin America, is also experiencing historic water scarcity, particularly in the central and northern regions. With data centers emerging around Santiago, concerns are rising about how new infrastructure will coexist with ongoing water crises impacting agriculture and rural communities.

Innovations in Cooling and Efficiency

To address these concerns, several companies and researchers are developing alternative cooling methods that reduce or eliminate water use:

• Liquid cooling and immersion cooling: Instead of evaporating water, these systems circulate coolants directly on servers, using less water and energy.

• Closed-loop systems: Reuse water internally rather than consuming fresh supplies.

• Hybrid cooling: Combines air and water-based methods, adjusting based on weather and load.

  
  

Furthermore, some companies are adopting WUE (Water Usage Effectiveness), a metric similar to the more common PUE (Power Usage Effectiveness), to measure water efficiency and guide improvements.

Several regions are already suffering from water scarcity, exacerbating existing tensions between industries, agriculture, and communities.

🌿 Leadership and Commitments

Several global tech companies are beginning to set water-related sustainability goals:

• Microsoft has committed to becoming "water positive" by 2030, meaning they will replenish more water than they consume.

• Google aims to replenish 120% of the water it uses in its operations by the end of this decade.

• Meta has pledged to restore over 200% of the water it uses in high-stress areas.

Yet, critics argue that these targets often lack transparency and third-party verification. In some regions, it’s unclear how or where replenishment is supposed to happen, and whether it truly offsets the local impact.

🔎 The Problem of Transparency

Despite the growing awareness, many companies do not disclose their water usage in meaningful detail. Reporting is often voluntary and inconsistent, making it difficult for policymakers and communities to assess the risks or benefits of new data centers.

There is a clear need for:

• Stricter regulations and permitting processes, especially in water-stressed regions.

• Mandatory environmental impact assessments, including water use and climate projections.

• Public access to operational data, particularly for large-scale industrial users.

  
  

Conclusion: The Cloud Isn’t Weightless

The digital age comes with a paradox: while our lives may seem increasingly “in the cloud”, this cloud is grounded in very real physical and natural systems, including water. As demand for data grows, we must ask not only how much energy data centers consume, but also how much water they use, where, and at what cost. Sustainable digital infrastructure must be part of the solution, not a new source of strain, especially in a world already grappling with climate change, inequality, and water insecurity.

📣 Call to Action for Readers:

• If you're part of the tech or sustainability field, advocate for full water disclosure in ESG reports.

• If you're a policymaker or planner, integrate water risk assessments in data center approvals.

• And as citizens, let's stay informed about what powers our digital lives, and demand accountability from the companies behind them.