AI and data center growth could overwhelm municipal water systems

A UC Riverside research team led by Shaolei Ren has announced that community waterworks across the U.S. will need billions of dollars in new infrastructure to meet projected peak water demands from data centers.

• Main finding: The study quantifies that, within four years, data center cooling peak demands could require 697 million to 1.45 billion gallons per day of additional peak water capacity, and the estimated cost of required water infrastructure is $10 billion to $58 billion, depending on data center growth rates. The report calls for reporting peak water use (not just annual averages) and recommends developers add or fund water capacity or efficiency improvements to offset their own use.
• Background and specifics: The paper notes that on very hot days single data centers can withdraw >1 million gallons/day, with some planned allocations up to 8 million gallons/day. In February 2026, three major technology companies secured multi-million gallons/day water allocations for projects in Virginia, Louisiana, and Indiana, with combined related infrastructure costs approaching $1 billion. The study stresses limits from snowpack and reservoirs and cites the EPA estimate of trillions of dollars needed for national water/wastewater upgrades over the next two decades.