A new report warns that states across the Mountain West must act now to manage the growing energy and water demands of data centers. As tech companies expand their infrastructure to support AI and cloud services, experts say communities need policies that protect both utilities and natural resources.
Major electric providers in Arizona, Colorado, Nevada, New Mexico, and Utah expect energy demand to jump more than 50% over the next decade—driven largely by the rapid expansion of data centers.
If left unchecked, new data centers across these five states could consume about 7 billion gallons of water annually—the equivalent of what more than 190,000 people use in a year, according to a report from Western Resource Advocates.
“When you think about a town of like 190,000 people springing up, and the additional water demands of that, that’s not insignificant—especially in the West, where our water resources are already so constrained,” said Deborah Kapiloff, a policy advisor with the nonprofit. “Just about the one thing everyone in the West does agree on is that western communities need to find ways to do more with less water.”
Kapiloff urged states to require data centers to publicly report their water usage and adopt more sustainable practices like water reuse and dry-cooling systems.
The report also recommends limiting tax incentives to only those data centers that commit to using renewable energy sources—such as wind, solar, or geothermal—and prove they won’t cause utility bills to spike for nearby residents.
Western Resource Advocates also flagged the impact on emissions. In Nevada, for example, NV Energy’s projected greenhouse gas emissions for 2024 rose 53% compared to its 2022 forecast—highlighting how data center growth could reverse climate progress.
The report makes clear that without strong policy action, the region’s future energy and water supplies could be at risk.
This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.
Katie is a senior who has been on staff for three years. Her favorite type of stories to write is reviews and features. Katie’s favorite ice cream flavor is strawberry.
Leave a Reply