A new report from the non-profit think tank Ceres highlights that data centers in seven U.S. states—Virginia, Texas, California, Illinois, Georgia, Ohio, and Arizona—withdraw about 10.4 million acre-feet of freshwater annually. This figure, however, refers to water withdrawals, which involve drawing water from sources like rivers, lakes, or underground aquifers and returning most of it shortly afterward. It does not represent the total amount of water actually consumed or lost in the process. The report points out that 78% of the electricity used in these seven states is generated by power plants that rely on water for cooling or other processes. Moreover, 66% of these power plants are located in areas where water scarcity is a growing concern. This raises potential risks for communities in drought-prone regions, as the reliance on water for power generation could exacerbate local water stress. Bloomberg Law’s Bobby Magill compared the 10.4 million acre-feet figure to California’s annual urban water use, which is about 8 million acre-feet, based on a 2021 report. However, Ceres clarified that their number represents water withdrawals rather than water actually used, which is a key distinction. The 8 million acre-feet figure refers to water delivered and used for homes, businesses, and other purposes in California. Researchers from Arizona State University, using 2024 data from the Lawrence Berkeley National Laboratory, estimated that U.S. data centers, including the water needed for power generation, indirectly consume about 650,000 acre-feet of water annually. This suggests that the Ceres figure may be significantly higher, unless consumption has increased dramatically—by as much as 16 times the reported amount. Meanwhile, Ceres predicts that by 2030, water used for power generation could account for 72% of all water used by U.S. data centers, even as cooling technologies inside these facilities become more efficient. This comes at a time of severe water stress, with the two largest reservoirs on the Colorado River hitting record lows. In early 2026, local opposition over water and energy concerns has already disrupted $130 billion in data center projects. Shama Perveen, co-author of the report and director of water research at Ceres, stressed the need for collaboration among different stakeholders to address these challenges. She noted that the growing investment in artificial intelligence by major companies is increasing demand for data center operations, which in turn raises cooling and energy needs, further intensifying pressure on water resources.