Thirsty Servers
Data Centers & the Growing Challenge of Water Cooling
by Trent Cotney, Partner, Adams & Reese, LLP
(Editor’s Note: Trent Cotney, partner at Adams & Reese, LLP, is dedicated to representing the roofing and construction industries. Cotney is General Counsel for the Western States Roofing Contractors Association and several other industry associations. For more information, contact him at (866) 303-5868 or go to www.adamsandreese.com.)
Across the Western United States, cities are racing to attract new data centers, the vast digital warehouses that power everything from streaming video to AI analytics. But as cloud demand surges, so does something far less virtual: water consumption. For architects, engineers, and planners, designing data centers that balance thermal efficiency with responsible water use is fast becoming one of the defining environmental and regulatory challenges of the decade.
The Hidden Water Footprint
Modern data centers can consume millions of gallons of water annually for evaporative and adiabatic cooling. In hot, arid regions such as Arizona, Nevada, and inland California, that footprint can strain municipal systems already stretched by drought and population growth. A single hyperscale facility may draw enough water to supply thousands of homes each year.
Yet water use in data centers often hides behind the curtain of electricity statistics. Industry press releases tout megawatt capacity, not gallons withdrawn. As a result, communities are only now starting to ask the question: How sustainable is our digital infrastructure if it runs on scarce water?
Regulatory & Public Pressure Mounts
State and local governments across the West are tightening disclosure requirements. In 2024, Oregon required large water users to file annual usage reports, while California’s State Water Resources Control Board began exploring caps tied to kilowatt-hour output. Utilities are also reevaluating how to price industrial water consumption, sometimes adding drought surcharges for non-essential cooling applications.
Public perception has shifted just as quickly. In 2025, several proposed data centers near Phoenix, Arizona, and Reno, Nevada, faced public opposition over projected groundwater draw. Architects and developers who once focused solely on site access and grid reliability must now navigate environmental review boards, conservation districts, and local ordinances that treat water as a protected asset.
Rethinking Cooling Technologies
Historically, water-cooled chillers and evaporative towers dominated the industry because of their low energy cost. But newer approaches are redefining the design equation:
Closed-loop liquid cooling: Circulates refrigerants or dielectric fluids in sealed systems that drastically reduce evaporation losses.
Air-cooled chillers and indirect evaporative systems: Use ambient air and heat exchangers to maintain temperature with minimal water draw, though energy use may rise in hotter climates.
Hybrid systems: Allow operators to toggle between water and air modes depending on humidity and temperature conditions, balancing cost and conservation.
Heat reuse systems: Capture waste heat for district heating or adjacent greenhouses, turning what was once a liability into a secondary resource.
Design teams are increasingly expected to quantify and compare the water usage effectiveness (WUE) of these technologies just as they do energy efficiency metrics.
Planning for Place
The West’s geographic diversity means there is no one-size-fits-all cooling strategy. Architects must integrate climate modeling and water availability analysis early in site selection. Key questions include: Is the project located within an over-drafted aquifer or in a basin with active conservation mandates? Can reclaimed or non-potable water sources serve the facility? How will evaporative losses affect the region’s long-term water budget?
In Utah and New Mexico, some developers now partner directly with municipal wastewater utilities to use treated effluent for cooling resulting in a circular economy approach that protects potable supply while supporting local infrastructure investment.
The Role of Design & Construction Professionals
Architects and engineers have an expanding role not just in mechanical design, but in policy interpretation and community engagement. They are often the first to translate regulatory goals into buildable solutions. Working with contractors experienced in large-scale MEP coordination is critical to achieving both performance and compliance.
Contractors must also anticipate operational realities: water treatment for scaling and corrosion, maintenance of closed-loop systems, and potential regulatory monitoring of discharge. These details increasingly appear in specifications, commissioning protocols, and even warranty discussions.
Toward a Water-Neutral Digital Future
Major technology companies are beginning to respond. Microsoft and Google have committed to water-positive operations by the end of the decade, meaning they will replenish more water than they consume. While such pledges are aspirational, they signal a shift toward design accountability. The construction sector will be asked to prove conservation claims through measurable results and transparent reporting.
Architectural innovation will play a decisive role: shading and envelope design that reduce heat gain, site planning that leverages natural ventilation, and integration of renewables that offset power used for mechanical cooling. The future of data centers will depend as much on hydrology and ecology as on bandwidth and power density.
Conclusion
Data centers are essential infrastructure, but they are also intensive resource consumers. As the West confronts long-term drought cycles and escalating digital demand, architects and builders have an opportunity to lead in developing water-wise cooling strategies that align technology growth with environmental stewardship.
