U.S. data center water use may quadruple by 2028, prompting stricter approvals.

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A new report from the Kansas Health Institute, cited by ChainThink, shows that U.S. data center water use could increase fourfold by 2028 due to rising demand from AI and cryptocurrency, along with infrastructure expansion. In 2023, data centers consumed 17 billion gallons of water, with large facilities using up to 5 million gallons daily for cooling. One-fifth of U.S. data centers are located in water-stressed regions, relying on municipal drinking water supplies. In 2025, Tucson, Arizona, denied a project linked to Amazon over water concerns. Kansas City now requires city council approval for new data centers, evaluating their water and electricity impacts. Inflation trends may also influence future data center planning and resource allocation.

ChainThink reports that, on August 6, according to the Kansas Health Institute, U.S. data center water consumption could rise significantly due to the expansion of AI and data centers.

The report cites calculations from U.S. Department of Energy laboratories, stating that U.S. data centers directly consumed approximately 1.7 billion gallons of water in 2023, a figure that could increase two to fourfold by 2028. It notes that large data centers can use up to 5 million gallons of water per day, primarily for cooling.

In 2021, one-fifth of data centers in the United States were located in water-stressed regions, with some facilities sourcing more than half of their water from municipal drinking water supplies, and indirect water consumption from power generation was not included in standard data center water usage metrics. Local governments have begun tightening permitting requirements.

Last year, Tucson, Arizona, rejected a data center related to Amazon due to concerns it could become the city’s largest water user; this year, Kansas City requires new projects to undergo city council review and assess their impact on water resources and residents’ electricity bills.

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