AI Data Centers and Bitcoin Mining Strain Water Resources Amid Rapid Growth
The rapid growth of artificial intelligence data centers and Bitcoin mining has put a spotlight on water resources beyond electricity. Both industries rely heavily on cooling systems that require significant amounts of water, leading to increased concerns about water availability.
According to research cited in a report, U.S. data centers consumed approximately 228 billion gallons of water in 2023, compared to around 2.9 trillion gallons used for lawn irrigation. The varying levels of water consumption among data centers depend on factors such as cooling technology, climate, seasonal weather, and regional water availability.
Traditional evaporative cooling tends to use more water while consuming less electricity, whereas closed-loop and immersion cooling can reduce water demand. Moreover, the source of electricity generation also contributes to indirect water consumption, making two facilities with similar computing capacity have different environmental impacts.
Policymakers often lack standardized facility-level information due to inconsistent reporting requirements. The report recommends mandatory facility-level reporting, standardized disclosure rules, smart metering, and better methods for measuring indirect water used in electricity generation.