water conservation

Water consumption has emerged as one of the most contentious sustainability challenges facing the datacenter industry. While 43 projects explicitly use water cooling, 61 projects (10.3%) have adopted waterless cooling technologies, demonstrating industry innovation in response to water scarcity concerns. The canceled Amazon Tucson project and Missouri’s St. Charles “Project Cumulus” highlight how water issues can derail multi-billion dollar developments, driving rapid adoption of water-free alternatives.

overview

water consumption context

traditional datacenter water usage

Evaporative Cooling

• Most common traditional cooling method
• Water evaporates to remove heat
• Makeup water required to replace evaporation
• Typical consumption: 1-5 million gallons per MW annually
• Higher consumption in hot, dry climates
• Additional water for humidification

Cooling Tower Operations

• Continuously circulate water
• Evaporation removes heat from chilled water loop
• “Blowdown” water discharged to prevent mineral buildup
• Chemical treatment required
• Maintenance water usage
• Can account for 80%+ of datacenter water usage

Average Hyperscale Facility

• 100 MW facility: 100-500 million gallons annually
• Equivalent to 150-750 Olympic swimming pools
• Or water for 1,000-5,000 homes annually
• Varies dramatically by cooling technology and climate
• PUE and WUE (Water Usage Effectiveness) metrics

water usage effectiveness (wue)

Definition

• WUE = Annual water usage (liters) / IT equipment energy (kWh)
• Lower is better
• Accounts for climate and cooling method differences
• Complements PUE (Power Usage Effectiveness)

Typical Values

• Traditional evaporative cooling: 1.8-2.0 L/kWh
• Efficient evaporative: 0.8-1.2 L/kWh
• Closed-loop systems: 0.2-0.5 L/kWh
• Air-cooled systems: 0.0-0.1 L/kWh (minimal)
• Waterless systems: 0.0 L/kWh (zero)

Industry Leaders

• Prime Data Centers Avondale: near-zero WUE (97% less water than residential neighborhood)
• Meta Kansas City: 80% more water-efficient than industry standard
• Edged facilities: zero WUE (142M+ gallons saved annually per facility)

waterless cooling technologies

thermalworks waterless system

Edged Data Centers Pioneer

• Proprietary ThermalWorks waterless cooling technology
• Zero water consumption for cooling operations
• Air-cooling with advanced heat rejection
• Successfully deployed at multiple facilities
• Proven at scale for AI workloads

Edged Kansas City (Missouri)

• 26 MW capacity
• Saves 95 million gallons of water annually
• Uses 74% less energy than conventional facilities
• PUE 1.15 (industry-leading)
• Operational December 2024
• Designed for high-density AI workloads

Edged Mesa (Arizona)

• 36 MW capacity
• Conserves 142 million gallons of water annually
• ThermalWorks waterless cooling
• Located in water-stressed Phoenix metro
• Online late 2025
• AI training and inference optimized

Edged Ankeny (Iowa)

• 13.2 MW capacity
• Zero water consumption for cooling
• Saves 52 million gallons annually
• Air cooling up to 70 kW/rack
• Liquid cooling up to 200 kW/rack
• PUE 1.15

Edged Aurora (Illinois)

• 96 MW capacity at full buildout
• Waterless cooling saves 380 million gallons annually
• ThermalWorks technology
• Supports up to 70 kW per rack
• Multiple facilities planned

cyrusone waterless systems

CyrusOne Santa Clara SCV1 (California)

• 96 MW capacity
• Water-free cooling system
• Insulates from regional water stress
• Silicon Valley location (high water concerns)
• Proprietary air-cooling technology

CyrusOne Phoenix-Chandler Campus (Arizona)

• 81 MW capacity
• Zero water consumption cooling
• No water towers or evaporative cooling
• First net-positive water datacenter claim
• Response to Arizona water scarcity

CyrusOne Douglas County (Georgia)

• 50 MW capacity
• Environmentally-friendly waterless cooling
• Does not burden water resources and sewer system
• Southeast deployment demonstrating versatility

aligned data centers delta3

Patented Delta3 Cooling Technology

• Waterless heat rejection system
• 85% less water consumption than traditional
• Proven at multiple campuses nationwide
• Supports high-density computing
• DeltaFlow liquid cooling for GPUs

Aligned Phoenix Campus (Arizona)

• 180 MW capacity operational, 400+ MW planned
• Delta3 cooling: 85% water reduction
• 100% renewable energy matched
• PHX-01/02/03 operational
• Two new mega campuses: 400+ MW, 2M sq ft

Aligned Northlake Campus (Illinois)

• 100 MW capacity
• Delta3 waterless heat rejection
• DeltaFlow liquid cooling for high-density GPU
• Delta Cube air cooling
• Serving Chicago metro area

Aligned Salt Lake City Campus (Utah)

• 352 MW capacity
• Delta3 waterless heat rejection system
• Ambient cooling leveraging Utah’s low humidity
• PUE 1.15
• Mountain West location ideal for waterless cooling

adiabatic and air-cooled systems

Microsoft West US 3 Azure Region (Arizona)

• Adiabatic cooling system
• Zero water for cooling below 85°F
• Over half the year water-free in Phoenix
• Operational since 2021
• Two datacenters: El Mirage and Goodyear

Google Mesa Data Center (Arizona)

• Air-cooled technology
• No evaporative cooling
• 750,000 sq ft facility
• Located in water-stressed region
• Part of Google’s first Arizona presence

T5@Colorado Springs (Colorado)

• 100 MW capacity
• Uses cooler, drier external air
• Reduces air conditioning and operating costs
• High plains climate advantage
• Free cooling much of year

closed-loop systems

Prime Data Centers Phoenix Campus (Avondale)

• 240 MW capacity across five facilities
• Closed-loop cooling: near-zero WUE
• 97% less water than equal residential neighborhood
• 1.3 million square feet on 66.5 acres
• First facility operational Q3 2025

NTT Global Data Centers Mesa

• Pecos & Crismon Campus: 360 MW planned
• Closed-loop water cooling system
• Minimal makeup water requirements
• Seven facilities on 173 acres
• Completion November 2028

regional water stress analysis

critical water stress regions

Southwest Desert

• Arizona, Nevada, New Mexico
• Colorado River allocations declining
• Lake Mead at historically low levels
• Groundwater depletion
• Competition: agriculture, residential, industrial

California

• Recurring droughts
• Agricultural water demands
• Urban water restrictions
• Silicon Valley water concerns
• Regulatory pressure on industrial water use

Texas

• Edwards Aquifer stress (San Antonio area)
• Competition with growing population
• Oil and gas sector water demands
• Agricultural irrigation
• Regional variation (west Texas especially stressed)

Southeast

• Growing population
• Climate change impacts
• Some areas water-stressed (Atlanta metro, eastern North Carolina)
• Aquifer concerns
• Wastewater treatment capacity

arizona water crisis

Colorado River Allocations

• Declining Lake Mead levels
• Federal shortage declarations
• Arizona, Nevada, California facing cuts
• Agriculture bearing initial cuts
• Industrial scrutiny increasing

Groundwater Depletion

• Decades of over-pumping
• Some areas subsidence (ground sinking)
• Regulatory reforms underway
• New development restrictions
• Datacenter water use under scrutiny

Community Opposition

• Tucson Amazon AWS Project Blue canceled
• Water and energy consumption concerns
• Dozens of citizens testified
• City Council unanimously voted to stop work
• $3.6B, 600 MW project abandoned

missouri groundwater concerns

Project Cumulus (St. Charles) - Canceled

• 440-acre site inside Elm Point groundwater well field
• Water pollution concerns
• Location in critical aquifer
• 5,500+ residents opposed
• Project withdrawn August 19, 2025

Significance

• Led to nation’s first citywide datacenter construction ban
• One-year moratorium on datacenter construction
• Water protection priority
• Model for other communities
• Demonstrates political risk of water-intensive projects

nevada lake mead crisis

Las Vegas Water Supply

• 90% dependent on Lake Mead
• Lake at 27% capacity (recent lows)
• Third intake straw construction
• Water restrictions in place
• Industrial scrutiny intensifying

Impact on Datacenters

• Las Vegas datacenter development scrutiny
• Waterless cooling increasingly required
• Regulatory pressure mounting
• Long-term sustainability questions

water-abundant regions

Pacific Northwest

• Abundant rainfall
• Columbia River hydro system
• Lower water stress
• Oregon and Washington less constrained
• Community acceptance higher

Upper Midwest

• Great Lakes proximity
• Adequate rainfall
• Iowa, Wisconsin, Minnesota less stressed
• Groundwater generally adequate
• Cold climate reduces cooling water needs

Southeast (selective)

• Adequate rainfall in many areas
• Some exceptions (Atlanta metro)
• Water availability varies
• Less political sensitivity than West

conservation initiatives

meta kansas city

Water Efficiency Achievement

• 1,000,000 sq ft facility, 750 MW capacity
• 80% more water-efficient than industry standard
• Net-zero carbon emissions
• LEED Gold certification
• Opened August 2025

Technology

• Advanced cooling design
• Likely air-cooled or closed-loop system
• 32% less energy than typical datacenter
• Efficient heat rejection
• Best practices for Midwest climate

Impact

• Sets new standard for Missouri
• Demonstrates feasibility
• Economic development (over 100 jobs)
• Community acceptance
• Model for future projects

qts cedar rapids (iowa)

Water-Free Cooling System

• Saves more than 48 million gallons of water annually per datacenter
• Multiple datacenters at campus
• Air-cooling leveraging Iowa climate
• Cold winter free cooling
• Summer efficiency optimized

Regional Advantage

• Iowa climate favorable for air cooling
• Lower summer peaks than desert
• Cold winters for free cooling
• Lower PUE achievable
• Demonstrates geographic matching

dc blox palm coast (florida)

Recycled Refrigerant Cooling

• Uses recycled refrigerant cooling system
• Minimal water usage
• Cable landing station integration
• Coastal location (water scarcity concerns)
• Innovative approach for Southeast

waste heat recovery

Data City Texas (Planned)

• 5,000 MW capacity
• Waste heat recovery exploration
• Potential industrial process heat use
• Greenhouse heating potential
• District heating possibilities

Bitzero Nekoma Pyramid (North Dakota)

• Zero Carbon Displacement energy strategy
• Waste heat from servers heats on-site greenhouse
• Repurposed Nekoma Pyramid (former missile site)
• Agricultural integration
• Circular economy approach

canceled projects due to water concerns

amazon aws project blue (tucson, arizona)

Project Details

• $3.6 billion investment
• 600 MW capacity
• 290-acre campus
• Hyperscale AWS region

Opposition and Cancellation

• Tucson City Council unanimously voted to stop work
• Dozens of citizens testified against
• Water consumption concerns primary driver
• Energy consumption also cited
• Project abandoned

Significance

• First major hyperscale cancellation over water
• Demonstrates political risk
• Influenced Arizona datacenter planning
• Accelerated waterless cooling adoption
• Community power over corporate development

project cumulus (st. charles, missouri)

Project Details

• 440-acre site
• Inside Elm Point groundwater well field
• Unknown capacity (not disclosed before cancellation)

Opposition and Cancellation

• 5,500+ residents opposed
• Water pollution concerns
• Location in critical aquifer
• Energy cost concerns
• Project withdrawn August 19, 2025

National Impact

• First US city to ban datacenter construction (one-year moratorium)
• St. Charles citywide ban
• National media attention
• Bernie Sanders praised residents
• Model for other communities considering similar action

lessons learned

Water-Intensive Projects at Risk

• Any project in water-stressed region faces scrutiny
• Groundwater protection priority
• Community opposition organized and effective
• Political risk underestimated by developers
• Waterless cooling essential for acceptance

Regulatory Response

• Some jurisdictions implementing water use limits
• Environmental review intensifying
• Community input requirements
• Alternative cooling technology incentives

future of datacenter cooling

short-term trends (2025-2027)

Waterless Adoption Accelerating

• More providers offering waterless options
• Customer demand driving adoption
• ThermalWorks and similar technologies scaling
• Cost-competitive with traditional in many climates
• Required for water-stressed regions

Liquid Cooling Expansion

• Direct-to-chip liquid cooling for high-density AI
• Water-based but closed-loop (minimal consumption)
• Immersion cooling pilots
• Two-phase cooling demonstrations
• Handles 200+ kW racks

Hybrid Approaches

• Waterless for most of year
• Minimal water use for extreme heat periods
• Seasonal optimization
• Climate-adaptive systems
• Lowest overall environmental impact

medium-term (2027-2030)

Technology Maturation

• Waterless cooling proven at gigawatt scale
• Liquid cooling standard for AI workloads
• Advanced heat rejection materials
• Thermodynamic optimization
• Lower capital and operating costs

Regulatory Environment

• Water consumption limits likely in stressed regions
• Reporting requirements expanding
• Incentives for water-free systems
• Community benefit agreements including water conservation
• Federal standards potential

Market Differentiation

• Waterless cooling competitive advantage
• Customer preferences for sustainable facilities
• Investor scrutiny of water risk
• ESG reporting prominence
• Water-free as marketing differentiation

long-term (2030+)

Near-Universal Waterless in Stressed Regions

• Arizona, Nevada, New Mexico: waterless standard
• California: waterless increasingly required
• Texas: waterless in water-stressed areas
• Other regions following

Waste Heat Utilization

• District heating in cold climates
• Industrial process heat
• Greenhouse heating
• Desalination potential
• Circular economy integration

Advanced Cooling Technologies

• Solid-state cooling demonstrations
• Thermoacoustic cooling potential
• Advanced phase-change materials
• Magnetic cooling possibilities
• Nanotechnology heat transfer

water vs energy tradeoffs

thermodynamic realities

Evaporative Cooling Efficiency

• Water evaporation highly effective heat removal
• Lower energy consumption (lower PUE)
• Thermodynamic advantage
• Trade-off: water consumption vs energy consumption

Air-Cooling Energy Penalty

• Requires more fan power
• Higher PUE in hot climates (typically 0.1-0.3 higher)
• Larger equipment footprint
• Higher capital cost
• Trade-off accepted for water savings

climate considerations

Cold Climates Favor Air-Cooling

• Free cooling much of year
• Minimal energy penalty
• Water savings dramatic
• Economic and environmental win-win
• T5@Colorado Springs, QTS Cedar Rapids examples

Hot Climates Challenge

• Air-cooling energy penalty higher
• Phoenix 100°F+ for months
• Las Vegas extreme summer heat
• Technology innovation addressing (ThermalWorks, Delta3)
• Cost-benefit analysis favoring waterless despite energy penalty

Moderate Climates

• Most flexible
• Hybrid approaches viable
• Seasonal optimization
• Choice based on water availability and cost

corporate prioritization

Water-Stressed Regions

• Water conservation priority
• Accept energy penalty
• Community relations critical
• Project viability depends on water-free
• Examples: Arizona, Nevada projects

Water-Abundant Regions

• Energy efficiency priority
• Lower PUE achievable with evaporative cooling
• Water less constrained
• Cost-benefit different
• Examples: Pacific Northwest

Evolving Standards

• Industry moving toward waterless regardless of region
• Technology improvements reducing energy penalty
• Corporate sustainability goals
• ESG considerations
• Long-term risk mitigation

industry best practices

site selection

Water Availability Assessment

• Comprehensive water resource study
• Groundwater recharge rates
• Surface water access
• Competing water demands
• Long-term climate projections

Community Water Concerns

• Early engagement on water plans
• Transparent consumption estimates
• Waterless cooling commitment
• Monitoring and reporting
• Community benefit agreements

technology selection

Climate-Appropriate Cooling

• Match cooling technology to climate
• Cold climates: air-cooling favored
• Hot climates: advanced waterless technologies
• Hybrid systems for flexibility
• Future-proof design

High-Density Computing

• Liquid cooling for AI workloads
• Direct-to-chip cooling
• Closed-loop systems (minimal makeup water)
• Immersion cooling evaluation
• Two-phase cooling for extreme density

monitoring and reporting

WUE Metrics

• Calculate and report Water Usage Effectiveness
• Transparent disclosure
• Benchmarking against industry
• Continuous improvement targets
• Third-party verification

Community Reporting

• Public reporting of water consumption
• Local water authority coordination
• Community advisory boards
• Transparency builds trust
• Annual sustainability reports

economic considerations

capital costs

Waterless Cooling Capital Cost

• Historically 10-20% higher than evaporative
• Gap narrowing with scale and innovation
• Eliminated water infrastructure (cooling towers, piping)
• Smaller footprint in some designs
• Total cost of ownership competitive

Liquid Cooling Capital Cost

• Higher upfront cost for infrastructure
• Required for high-density AI (200+ kW racks)
• Density enables smaller building footprint
• Overall cost per MW competitive
• Future-proofing value

operating costs

Water Costs

• Direct water purchase costs
• Wastewater discharge fees
• Chemical treatment
• Maintenance of cooling towers
• Regulatory compliance

Energy Costs

• Waterless systems may use more energy
• PUE penalty: 0.1-0.3 in hot climates
• Energy cost vs water cost trade-off
• Varies by location
• Long-term energy efficiency improvements

Risk Costs

• Water scarcity risk premium
• Regulatory risk
• Community opposition risk
• Project approval delays
• Insurance and financing considerations

financing and esg

Investor Scrutiny

• Water risk in investment analysis
• ESG scoring incorporates water
• Sustainability-linked financing
• Green bonds require water conservation
• Disclosure requirements increasing

Credit Rating Implications

• Water risk affects credit ratings
• Long-term viability assessment
• Physical risk from water scarcity
• Regulatory risk from restrictions
• Best practices enhance creditworthiness

conclusion

Water conservation has evolved from peripheral sustainability concern to central determinant of datacenter project viability. The cancellation of Amazon’s $3.6B Tucson project and Missouri’s Project Cumulus demonstrates the political and community risks of water-intensive developments. In response, 61 projects (10.3%) have adopted waterless cooling technologies, with leaders like Edged (ThermalWorks), CyrusOne, and Aligned Data Centers (Delta3) proving zero-water operations at scale.

Regional water stress drives divergent strategies: Arizona and Nevada projects increasingly mandate waterless cooling, while water-abundant regions like the Pacific Northwest retain flexibility. Innovations like Meta Kansas City’s 80% water reduction, Prime Data Centers’ 97% savings, and Edged’s 142 million gallon annual savings per facility showcase dramatic efficiency gains.

The future of datacenter cooling lies in waterless technologies. Short-term (2025-2027) acceleration includes ThermalWorks scaling, liquid cooling for AI workloads, and hybrid seasonal approaches. Medium-term (2027-2030) maturation features water consumption limits in stressed regions, technology cost reductions, and market differentiation. Long-term (2030+) trajectories point toward near-universal waterless adoption in stressed regions, waste heat utilization, and advanced cooling technologies.

Water-energy trade-offs persist—waterless cooling typically incurs 0.1-0.3 PUE penalty in hot climates—but corporate, community, and regulatory pressures overwhelmingly favor water conservation. As climate change intensifies water scarcity and community scrutiny grows, water-free cooling transitions from competitive advantage to essential requirement. The industry’s water conservation trajectory will define social license to operate, project approval success rates, and long-term sustainability in a water-constrained future.