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U.S. AI data centers in just 7 states withdraw 3.4 trillion gallons of water annually, exceeding the water demand of all California cities combined.

The massive energy appetite of the artificial intelligence boom is hiding an environmental crisis. According to a landmark report by the sustainability nonprofit Ceres, data centers across seven key states—including Virginia, Texas, and California—indirectly withdraw roughly 3.4 trillion gallons of freshwater annually just to generate the electricity required to keep them running.

This staggering volume exceeds the average annual urban water demand of every city in California combined, exposing a massive, largely unmonitored strain on regional water resources.

While tech giants frequently boast of their local, on-site cooling efficiencies, they rarely disclose this indirect water footprint from the power plants feeding their facilities. Much of this power comes from water-intensive thermal or hydroelectric sources, with a significant portion located in regions already suffering from severe drought. As the AI arms race accelerates, experts warn that without strict transparency and a shift to water-efficient energy sources, this hidden water liability will directly compete with local communities for vital freshwater supplies.

source: Ceres. (2026). The Water Behind the Watts. Ceres.