Water Behind the Watts: The Hidden Risk of Powering Data Centers

Data centers consume approximately 3.4 trillion gallons of freshwater annually for electricity generation across seven key U.S. states—12 times the combined water usage of Los Angeles, Phoenix, and Washington D.C.—with 66% of water-dependent power plants operating in regions facing significant water stress or drought. This hidden water dependency poses substantial operational and reputational risks to IT organizations, as most data center operators currently lack visibility into or management of the water risks embedded in their electricity supply chain. As AI infrastructure expansion accelerates, CIOs must address this critical sustainability challenge or face potential supply chain disruptions, regulatory pressures, and community opposition that could impact data center availability and corporate ESG commitments.