CRS REPORT: Data Centers and Water: Frequently Asked Questions

As artificial intelligence and cloud-based services expand, data centers have become a growing focus of public policy and community discussion. Their rapid development is increasing attention on the resources required to operate them, including water used, consumed, and discharged in support of cooling and other facility needs.

Data centers contain the computing and networking equipment that processes, stores, manages, and distributes digital information for IT services. Because this equipment produces heat, facilities rely on thermal management systems to control airflow and cooling. These systems generally use air- or liquid-based technologies, with some liquid systems using water to transfer heat.  Water use associated with cooling can vary based on facility size, computing demand, location, climate, equipment requirements, and local water availability.

Resource concerns, including concerns about water demand, have contributed to community opposition in some areas and to bans or moratoriums in certain local jurisdictions. These issues have also drawn congressional attention, with several bills introduced to address data center development and related resource concerns.

To support congressional consideration of these issues, the Congressional Research Service has prepared Data Centers and Water: Frequently Asked Questions. CRS is a nonpartisan public policy research institute within the Library of Congress that provides Members, committees, and staff with objective, confidential, and timely analysis on national policy issues.

The report notes that data centers’ direct water use accounts for a relatively small share of total U.S. water consumption, estimated at about 2%. However, local communities may still be concerned about how new or expanding facilities could affect already constrained water supplies. Comprehensive data on data center water use remain limited, and understanding of potential local effects continues to develop. Those effects depend on local and regional water conditions, available supply options, and competing demands for water.

The report uses a question-and-answer format and focuses on direct water use by data centers. It does not address indirect water use, such as water used in offsite power generation, which is outside the report’s scope.

In the 119th Congress, several data center-related bills have been introduced in both chambers, though most have not advanced beyond introduction. These bills include provisions that would improve information on data center water use, encourage practices such as water reuse, or limit or facilitate data center construction. Table A-1 of the CRS report lists selected bills.

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