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Thirst for Data: State Responses to Data Center Water Use

Thirst for Data: State Responses to Data Center Water Use is a new Getches-Wilkinson Center report on Artificial Intelligence, water, and legal reform. AI is fueling a data center development boom—but what does it mean for our water future? Data centers consume large amounts of water, are increasingly located in the arid West, and are projected to grow exponentially in the coming years. With the federal government standing aside, states are struggling to respond swiftly and effectively to their citizens' concerns. This new paper examines emerging state legislation across the country, identifying four major water policy approaches: reporting, conservation, incentives, and prior appropriation requirements. Whether you're a policymaker, researcher, industry leader, or concerned citizen, this analysis offers a timely snapshot at one of the fastest-evolving intersections of technology and water policy.Ìý

Report authors: Daniel Anderson, J.D., Getches-Wilkinson Water Law Fellow and Sydney Stellato, Colorado Law Student, Conscience Bay Company Western Water Policy Fellow

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Mount Pleasant, Wisconsin, USA - August 7, 2025: Aerial drone view of Microsoft’s Fairwater AI data center campus under construction in Racine County. The large-scale hyperscale facility is part of a multibillion-dollar investment by Microsoft to build one of the world’s most advanced artificial intelligence data centers. The Fairwater site spans hundreds of acres and includes multiple large buildings designed to house high-performance computing infrastructure, including hundreds of thousands of GPUs used f