Data Centers Face Water Scrutiny

Data center proposals and operating facilities across Nebraska, North Carolina, Oklahoma, Texas, and Wyoming are drawing scrutiny over water demand, cooling systems, and limited disclosure.

Developers and regulators are weighing evaporative, closed-loop, air-cooled, and liquid-cooling designs, each with different effects on water use, electricity demand, costs, and timelines. The issue matters because projects are increasingly being proposed near constrained supplies, including the Ogallala Aquifer, while communities and state agencies are still developing consistent reporting and permitting rules.