Over 60% of new US data centers are built in drought areas, water use debate heats up

A Guardian analysis found that about two-thirds of 809 planned US data centers are in areas hit by drought last year, with 517 in drought-stricken zones. By 2050, AI's new water demand will see data center cooling use just 4%, power generation 54%, and chip manufacturing 42%. A modern chip fab uses 2-10 million gallons of water daily, needing ultrapure water that requires 1400-1600 gallons of municipal supply for every 1000 gallons produced. TSMC's three Arizona fabs will draw 16.4 million gallons daily, despite 85% recycling. Nvidia says its GB200 NVL72 system saves up to 300 times more water than air cooling, but only for the cooling loop; higher power racks increase generation needs, and gas plants are water-intensive. Meta's Louisiana data center uses closed-loop cooling but needs 10 gas plants, raising total water use. US states are regulating cooling water only, ignoring chip making and power generation.