New study reveals data centers could need water capacity equal to NYC by 2030

A new research paper titled 'Small Bottle, Big Pipe: Quantifying and Addressing the Impact of Data Centers on Public Water Systems' has quantified a looming infrastructure crisis. Authored by Yuelin Han, Pengfei Li, Adam Wierman, and Shaolei Ren, the study warns that the explosive growth of AI and computing is creating a massive, overlooked demand for peak water withdrawals for cooling. Many U.S. communities, especially during summer heat waves, lack the capacity to supply this water, creating a bottleneck that could force data centers to switch to less efficient dry cooling methods, thereby transferring stress to the already strained power grid.

The study's core finding is stark: if water use intensity from 2024 persists, U.S. data centers could require 697 to 1,451 million gallons per day (MGD) of new water capacity by 2030, a volume on par with the average daily supply for New York City (~1,000 MGD). Even under an optimistic 10% annual reduction in water use intensity, demand would still reach 227-604 MGD. The financial valuation for this new water infrastructure is estimated between $10 billion and $58 billion, with impacts highly concentrated on specific host communities. The authors propose concrete solutions, including mandatory peak water use reporting, corporate-community partnerships, a 'Water Capacity Neutral' (or 'Pipe Neutral') policy to protect local resources, and coordinated water-power planning to use surplus power for water mitigation.