As the digital world rushes to embrace generative artificial intelligence, the physical infrastructure supporting it is beginning to collide with one of California’s most precious and precarious resources: water.
A new report released by Next 10 and the Santa Clara University Water & Climate Justice Lab reveals a looming crisis at the intersection of tech expansion and environmental justice. While data centers have historically clustered in urban tech hubs like Silicon Valley, the industry is now pushing into hydrologically and socially vulnerable regions, including the Central and Imperial Valleys.
“Hyperscale” facilities—massive warehouses housing thousands of power-hungry servers—require staggering amounts of water for cooling and power generation. Yet, for the vast majority of these facilities, the public is being left in the dark about exactly how much they drink.
For decades, the City of Santa Clara has been the epicenter of data center development, benefiting from cheap electricity and proximity to tech giants. But as land and power costs skyrocket, developers are looking toward exurban and rural spaces.
These new frontiers often overlap with communities already struggling with contaminated water, dry wells, and extreme heat. In Imperial County, a planned data center—set to be one of the largest in the U.S.—is situated in one of the state’s driest regions. While the project proposes using recycled water, researchers warn it remains unclear if that water is already promised elsewhere.
“Data centers are expanding into more socially and hydrologically vulnerable regions,” the report states, noting a shift toward communities with “fewer economic and water security buffers.”
The transparency gap
One of the report's most striking findings is the lack of public oversight. Researchers were unable to find publicly accessible environmental planning documents for the “vast majority” of mapped data centers.
Many developers are bypassing the rigorous California Environmental Quality Act (CEQA) review process through ministerial approvals, which allow projects to move forward without full Environmental Impact Reports or public comment.
“A lack of data leads to a lack of trust,” the researchers found, pointing to growing community pushback in places like Monterey Park, where residents recently fought to block a planned facility.
Beyond the local tap
The impact of a single data center often ripples far beyond its own fence line. In Santa Clara, roughly half the water supply is imported from the Sierra Nevada through the Delta. In Los Angeles, facilities rely on the Colorado River and Northern California systems already facing mandatory cutbacks.
“The water footprint of these data centers effectively shifts hydrologic risk to other regions that are simultaneously confronting scarcity and ecological strain,” the report warns.
The path forward
To address these inequities, the report recommends that state lawmakers mandate standardized, timely disclosure of water and electricity use. Current legislative efforts, such as Assembly Bill 2619, aim to pull back the curtain on the industry's resource consumption.
Without such transparency, experts say it is impossible for water providers to plan for a sustainable future, especially as climate change makes California’s water cycles increasingly unpredictable.
“Determining where to locate [data centers] involves many factors and complex trade-offs,” the report concludes. “However, such trade-offs cannot be accurately assessed in the absence of accurate data about the centers’ local impacts.”