What They Are, Why They're Expanding, and What They Mean for America's Rivers

Every email you send, every video you stream, every online purchase you make, and every AI question you ask relies on a data center.

Most people never see them. Yet data centers have become some of the largest and fastest-growing infrastructure projects in America.

What many people don't realize is that these facilities depend not only on vast quantities of electricity, but also on enormous quantities of water. In many cases, that water ultimately comes from the same rivers, reservoirs, and watersheds that communities, agriculture, and wildlife depend upon.

As artificial intelligence, cloud computing, and digital services continue to expand, communities across the country are increasingly asking an important question:

Can our rivers support the growing demands of the digital economy?

What Is a Data Center?

A data center is a facility that houses thousands—or sometimes hundreds of thousands—of computer servers.

These servers store data, run websites, process transactions, stream videos, and power artificial intelligence systems. Large facilities operated by technology companies can occupy hundreds of acres and contain enormous amounts of computing equipment.

Think of a data center as a digital factory. Instead of manufacturing products, it processes information.

Every search query, social media post, online purchase, banking transaction, and AI-generated response travels through at least one of these facilities.

How Many Data Centers Are There?

The United States currently has more than 5,426 active data centers, which is more than any other country.

The growth is accelerating rapidly. Hundreds of new facilities are under construction, and many more are in various stages of planning and approval.

Artificial intelligence is a major driver of this expansion. AI systems require vast amounts of computing power, and that computing power requires new buildings, new electrical infrastructure, and in many cases, additional water resources.

The result is a construction boom unlike anything the industry has seen before.

Why Are So Many New Data Centers Being Built?

The biggest driver is artificial intelligence.

Training and operating modern AI systems requires enormous computing capacity. Cloud computing, video streaming, online commerce, and digital storage continue to add demand as well.

Some of the newest AI-focused campuses are so large that they consume as much electricity as small cities.

As technology companies race to build additional capacity, communities across the country are competing to attract new projects and the economic benefits they can bring.

Where Are They Being Built?

Data center development is concentrated in several major regions:

• Northern Virginia
• Texas
• Phoenix, Arizona
• Chicago, Illinois
• Atlanta, Georgia
• Columbus, Ohio
• Salt Lake City and other Intermountain West markets

Developers typically seek locations with reliable power supplies, high-speed fiber networks, available land, favorable tax policies, and access to water for cooling systems.

Unfortunately, many of these locations are also areas where water resources are already under increasing pressure.

Following the Water

The geography of data center development often overlaps with the geography of water availability.

Many of the fastest-growing data center markets are located in regions where water resources are already strained. Arizona, Nevada, Texas, Utah, Colorado, and parts of California regularly experience drought concerns and depend heavily on rivers, reservoirs, and groundwater systems replenished by seasonal snowmelt.

In the American West, many rivers are already being asked to do more than nature intended. Water from the Colorado River, Snake River, Rio Grande, and other major watersheds supports cities, farms, industries, recreation, and wildlife.

Every new major water user becomes part of a larger conversation about how limited water resources should be allocated.

While a single data center may represent only a fraction of a region's overall water use, the industry's rapid growth means that cumulative impacts are becoming increasingly important.

The Resources Data Centers Need

Electricity

Electricity is the largest resource requirement.

Data centers operate around the clock, every day of the year. Servers, networking equipment, cooling systems, and backup infrastructure consume enormous amounts of power.

Industry analysts project that data center electricity demand could double or even triple during the next decade as artificial intelligence adoption expands.

Meeting that demand will require substantial investments in power generation and transmission infrastructure.

Land

Modern AI campuses can cover hundreds or even thousands of acres.

Many include multiple server buildings, electrical substations, backup power systems, cooling infrastructure, warehouses, and security facilities.

Large campuses increasingly resemble industrial parks rather than traditional office buildings.

Water

Water has become one of the most debated aspects of data center development.

Computer servers generate heat. That heat must be removed to keep equipment operating safely and efficiently.

Many facilities use evaporative cooling systems that consume significant quantities of water. As facilities become larger and more powerful, their water requirements can increase substantially.

Some operators are adopting newer technologies that reduce water consumption, but water remains a critical operational resource for many facilities.

Why Rivers Matter in the Data Center Boom

When discussions about data centers focus solely on electricity consumption, an important part of the story can be overlooked.

Much of the water used by data centers ultimately originates in rivers and watersheds.

Reservoirs fed by rivers provide municipal water supplies. Rivers recharge aquifers. Snowmelt-fed watersheds sustain communities throughout the West. As demand for water increases, rivers often become the first places where competing interests collide.

Reduced river flows can have consequences far beyond water supply.

Lower flows can increase water temperatures, making conditions more difficult for fish and aquatic life. Pollutants become more concentrated when less water is available to dilute them. Wetlands and riparian habitats may shrink. Recreational opportunities can decline as streamflows drop.

These challenges already exist in many western watersheds due to drought, population growth, and agricultural demand. The expansion of water-intensive industries adds another factor that communities must consider when planning for the future.

For river advocates, the question is not whether data centers should be built. The question is whether growth can occur in a way that protects the long-term health of rivers and watersheds.

The Benefits of Data Centers

Data centers provide important economic and technological benefits.

They support the digital services that modern society depends upon. Construction projects create jobs and tax revenue. Many facilities invest heavily in renewable energy and increasingly efficient cooling technologies.

Several companies are developing advanced cooling systems designed to reduce both energy consumption and water use.

These innovations could help reduce environmental impacts while allowing technological growth to continue.

The Challenges Ahead

The challenge is not whether data centers should exist.

The challenge is how communities can balance technological growth with responsible resource management.

As demand for AI and cloud computing expands, communities will need to consider:

• Electricity availability
• Water supplies
• River health
• Land use
• Environmental impacts
• Long-term sustainability

These decisions will become increasingly important in regions where rivers, reservoirs, and aquifers are already under pressure from population growth and changing climate conditions.

Rivers Are Infrastructure Too

Data centers are often described as critical infrastructure because modern society depends upon them.

The same can be said for rivers.

Rivers provide drinking water, support agriculture, generate hydropower, sustain fisheries, recharge groundwater, support recreation, and maintain ecosystems that have evolved over thousands of years.

Unlike computer servers, however, rivers cannot simply be upgraded when demand increases. Their capacity is determined by rainfall, snowpack, watershed health, and natural hydrology.

In many western states, future economic development may depend as much on water availability as on electricity or land.

As communities evaluate proposals for new data centers, understanding where water comes from—and how its use affects rivers—will become increasingly important.

Finding the Right Balance

The digital economy is here to stay.

Artificial intelligence, cloud computing, online services, and digital communication all depend on data centers. These facilities deliver enormous benefits and will continue to play an important role in economic growth and innovation.

At the same time, water is not an unlimited resource.

Many rivers in the American West are already experiencing pressure from drought, population growth, agricultural demand, and declining snowpack. New industrial water users, including data centers, add another layer to an increasingly complex challenge.

Thoughtful planning, transparent water-use policies, efficient cooling technologies, and strong watershed stewardship can help communities support both technological progress and environmental protection.

A River Perspective

At Clean Rivers Fund, we believe that conversations about technology should include conversations about water.

The growth of artificial intelligence and cloud computing will likely require hundreds of new data centers across the United States in the coming years. While these facilities bring economic and technological benefits, they also increase demand for resources that are already under pressure in many regions.

Healthy rivers are not simply environmental assets. They are essential infrastructure that supports communities, economies, agriculture, recreation, and wildlife.

As America builds the digital economy of the future, protecting the rivers that sustain life must remain part of the equation.

The future of technology and the future of our rivers are more connected than many people realize.

 

References and Further Reading

1. U.S. Department of Energy. Data Center Energy Consumption and Efficiency Research. Information on electricity use, cooling technologies, and energy demands of modern data centers.

2. U.S. Environmental Protection Agency (EPA). WaterSense Program and Industrial Water Efficiency Resources. Guidance on water conservation and efficient water management practices.

3. U.S. Geological Survey (USGS). Water Science School: Water Use in the United States. National data and educational resources regarding water withdrawals and water management.

4. Electric Power Research Institute (EPRI). Powering Intelligence: Analyzing Artificial Intelligence and Data Center Energy Consumption. Research examining the growing energy demands associated with AI infrastructure.

5. Lawrence Berkeley National Laboratory. United States Data Center Energy Usage Reports. Studies of data center growth, efficiency improvements, and future electricity demand.

6. International Energy Agency (IEA). Energy and AI. Analysis of how artificial intelligence is influencing global electricity demand and infrastructure development.

7. U.S. Bureau of Reclamation. Colorado River Basin Water Supply and Demand Study. Examination of water availability challenges throughout the American West.

8. National Oceanic and Atmospheric Administration (NOAA). Healthy Watersheds and River Ecosystems. Resources on streamflow, aquatic habitats, and watershed protection.

9. Pew Research Center. What We Know About Energy Use at U.S. Data Centers Amid the AI Boom. Overview of recent growth trends in the data center industry.

10. Consumer Reports. AI Data Centers: Big Tech's Impact on Electric Bills, Water and More. Discussion of energy and water requirements associated with modern AI facilities.

11. Bloomberg. How AI Demand Is Affecting Local Water Supplies. Reporting on water consumption concerns in regions experiencing rapid data center growth.

12. American Society of Civil Engineers (ASCE). Infrastructure Report Card. Analysis of the infrastructure challenges associated with growing electricity and water demands.

13. National Integrated Drought Information System (NIDIS). Western Water and Drought Resources. Information about drought impacts on western watersheds and water supplies.

14. Western Governors' Association. Water Policy in the West. Resources addressing water management, growth, and competing demands on western water resources.

15. Clean Rivers Fund. The West's Water Challenge: When Snowpack Falls Short. Discussion of how declining snowpack affects rivers and water availability throughout the American West.

Editor's Note

This article is intended for educational purposes and provides a general overview of data centers, resource consumption, and potential implications for water resources. Water use varies significantly depending on facility size, cooling technology, local climate, and operational practices. Statistics and projections referenced in this article reflect publicly available information at the time of publication and may change as technologies and industry practices evolve.

The discussion of river impacts is intended to encourage informed consideration of water resource management and does not imply that all data centers have the same environmental footprint. Local conditions, water sources, conservation measures, and regulatory requirements can significantly influence outcomes.