New Analysis: Data Center Water Consumption Will Be Far Higher Than Tech Companies Claim

Tech companies have been quick to minimize the water needs of their AI data center projects in Wisconsin, pointing to on-site cooling technology that will recycle water or use alternative cooling methods on all but the hottest days of the year. But according to a new analysis from Clean Wisconsin, the intensive energy demands of data centers will spur a significant increase in water withdrawals in our state—even if water recycling or other cooling technology is used at data center sites.

Power generation is currently responsible for more than 70% of all water withdrawals in Wisconsin, and that number will rise as energy utilities seek to meet massive AI power demand. The state is already seeing new gas plant construction approvals, coal plant retirement delays, even questionable discussions about bringing a long-shuttered nuclear plant back online—all driven by new AI data center demand.

“AI data centers require an enormous amount of power. If even a portion of that need is met by water-intensive energy sources like gas, coal or nuclear power plants, we would expect to see significant water withdrawals to cool those plants,” says Clean Wisconsin Clean Water Manager Hannah Richerson, who conducted the analysis.

A City’s-Worth of Water

Richerson says knowing how a data center’s energy needs will be met is the only way to understand its true water impacts. For example, the full buildout of the Vantage data center in Port Washington will reportedly have power needs reaching 3.5 gigawatts (GW). If non-renewable energy sources are used to meet those needs, its off-site water use would be at least 54 million gallons a day. For comparison, that’s the water use of about 970,000 Wisconsin residents. It’s more than twice the amount of water used by every home, business and manufacturer in the City of Green Bay.

Data center developers often fail to fully disclose expected energy demands of their projects. While Microsoft describes its recently-announced Fairwater project in Mt. Pleasant as the “world’s most powerful AI data center,” the tech company has been tight-lipped about how much power generation will be needed to serve it.

“Because of their large energy demands and often corresponding water needs, AI data centers pose a risk to Wisconsin’s surface and groundwater resources—resources we rely on for drinking water, crop irrigation, and much more,” says Richerson. “That’s why the lack of transparency is so concerning.”

Richerson notes that wind and solar energy sites do not require any water withdrawals, but it’s unclear how much wind and solar will be developed to meet the skyrocketing demand caused by data centers. There are also concerns about chemicals like PFAS used in data center cooling systems that could be released into the environment.

NOTE: This press release was submitted to Urban Milwaukee and was not written by an Urban Milwaukee writer. While it is believed to be reliable, Urban Milwaukee does not guarantee its accuracy or completeness.