California Data Centers Are Using Billions of Gallons of Water. Here's Why It Matters.
Artificial intelligence is changing how we work, communicate, and consume information. But behind every AI-generated image, chatbot conversation, and cloud-based application is a massive network of servers that requires electricity, cooling, and one resource California can't afford to overlook: water.
As California continues to attract technology investment and expand its data center infrastructure, questions are growing about how much water these facilities consume and what that means for the state's already strained water supply.
According to a November 2025 study by Next 10, California data centers consumed an estimated 13.2 billion gallons of water in 2023, including both direct facility use and indirect water consumption associated with electricity generation.[1]
That's a significant increase from approximately 6.7 billion gallons in 2019.
How Much Water Do California Data Centers Use?
The Next 10 report, An Assessment of California Data Centers' Environmental and Public Health Impacts, found that California's total data center water footprint nearly doubled between 2019 and 2023.[1]
Here's the breakdown:
2019: 6.72 billion gallons
2020: 7.85 billion gallons
2021: 9.51 billion gallons
2022: 11.28 billion gallons
2023: 13.18 billion gallons
It's important to understand that these figures include more than water used inside data center buildings. Approximately 750 million gallons of the 2023 total represented direct, on-site water consumption. The remaining footprint was largely associated with water used in electricity generation. In other words, a data center's environmental impact extends beyond its physical location.
Why Do Data Centers Need So Much Water?
Data centers house thousands of computer servers that operate around the clock. These machines generate significant heat, requiring sophisticated cooling systems to prevent overheating and maintain performance.
Many facilities use evaporative cooling, which relies on water evaporation to remove heat. While effective, this process consumes water that must continually be replenished.
As artificial intelligence workloads increase, cooling demands are becoming an even bigger consideration.
AI applications require substantial computing power, meaning more servers, more electricity, and potentially greater cooling requirements. Even facilities that reduce their direct water consumption can have an indirect water footprint through the electricity they consume.
AI Could Push California's Water Consumption Even Higher
The growth of artificial intelligence is putting additional pressure on data center infrastructure. California already has more than 200 active data centers, according to the California Energy Commission.[2] As technology companies invest in larger facilities and AI infrastructure, demand for resources is expected to grow.
The Next 10 study projects that California's total data center water footprint could reach between 19.7 billion and 30.8 billion gallons annually by 2028, depending on the growth scenario.[1] These are projections, not confirmed future consumption figures. However, they highlight the potential scale of the industry's expansion. And California is already familiar with the challenges of managing limited water resources.
What Does This Mean for California?
Water is essential to California's agricultural industry, residential communities, businesses, and natural ecosystems. As data centers expand, their location and water sources matter. A facility relying on recycled wastewater presents different challenges than one drawing drinking water from a community already experiencing shortages.
A February 2026 report from UC Berkeley's Center for Law, Energy & the Environment highlights gaps in California's data center water reporting and oversight.[3]
Without consistent facility-level reporting, communities may struggle to understand exactly how much water individual data centers consume and how new development could affect local supplies. This is where transparency becomes essential. Technology companies can help reduce their environmental footprint by investing in recycled water systems, advanced cooling technologies, energy efficiency, and more transparent reporting practices. However, water and electricity consumption must be evaluated together. Some cooling systems save water but require additional electricity.
California Needs Sustainable Data Center Growth
California's estimated 13.2 billion gallons of data center-related water consumption in 2023 is a reminder that the digital economy has a very real physical footprint.
Artificial intelligence and data center development will continue shaping California's economy. But innovation shouldn't come at the expense of responsible resource management.
Better reporting, smarter cooling systems, recycled water infrastructure, and stronger planning can help ensure the state's technology industry grows responsibly. AI may live in the cloud, but the infrastructure powering it operates on the ground. And in California, water needs to remain part of the conversation.
Sources
[1] Next 10 (November 2025). An Assessment of California Data Centers' Environmental and Public Health Impacts. https://www.next10.org/publications/ai-environmental-public-health-impacts
Referenced in: Water consumption estimates (2019–2023), direct and indirect water use, cooling demands, and 2028 projections.
[2] California Energy Commission. Data Centers. https://www.energy.ca.gov/programs-and-topics/topics/data-centers
Referenced in: Number of active data centers operating in California.
[3] UC Berkeley Center for Law, Energy & the Environment (February 2026). Regulating Data Center Water Use in California. https://clee.berkeley.edu/publications/regulating-data-center-water-use-in-california/
Referenced in: California's water reporting requirements, regulatory gaps, and the need for greater transparency and local oversight.
