California Will Soon Have More Than 300 Data Centers. Where Will They Get Their Water?

Why It Matters

The center’s massive water demand could strain an already overtaxed regional supply, driving up costs for residents and prompting costly infrastructure upgrades. Its approval will set precedents for how California balances data‑center growth with critical water resource management.

Key Takeaways

• 750,000 gallons of water per day needed for Imperial data center
• Project valued at $10 billion and may create ~100 permanent jobs
• California lacks a central permitting authority for data‑center water use
• Statewide water‑infrastructure upgrades could cost $200‑$800 million
• Residents fear higher water bills amid ongoing megadrought

Pulse Analysis

California’s data‑center boom is accelerating, with roughly two dozen new facilities slated to open by 2030. The Imperial County proposal stands out for its size—nearly a million square feet—and its projected daily water draw of 750,000 gallons, equivalent to the household consumption of about 10,000 residents. While developers argue that power and water costs will remain stable, the region’s water scarcity, driven by a prolonged megadrought and dwindling Colorado River flows, raises serious questions about the sustainability of such projects. The Imperial case illustrates how local communities, already coping with rising utility bills, are confronting the prospect of additional strain on limited water supplies.

Regulatory oversight in California is fragmented; no single agency tracks data‑center water usage, and reporting requirements are minimal. This gap leaves municipalities to negotiate water deals on a case‑by‑case basis, often delaying projects and creating uncertainty for both developers and residents. Some operators are exploring reclaimed or gray‑water sources to mitigate demand, but securing these alternatives can take years, far longer than the two‑to‑three‑year construction timeline of a data center. Consequently, water‑infrastructure upgrades—estimated between $200 million and $800 million for the state’s planned facilities—become a critical, yet underfunded, component of the expansion.

The broader implications extend beyond Imperial. As data centers proliferate, their collective water consumption could reach up to 1.45 billion gallons per day nationally by 2030, rivaling the daily supply of major cities like New York. Policymakers must therefore craft comprehensive water‑management frameworks that balance technological growth with resource resilience. Transparent reporting, incentives for using non‑potable water, and coordinated investment in infrastructure will be essential to prevent water bottlenecks and protect vulnerable communities as the digital economy expands.