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Electricity use spurring data centers' growing water footprint: Ceres

Published

31 August 2026

Topic

technology

Sectors

Cloud Infrastructure

Geography

United States

Source

Read at esgdive.com

Verified

Fusion42 · 1 September 2026 · Fusion42 review

A new report from Ceres reveals that electricity use for data centers drives a massive hidden water footprint, with significant consumption of freshwater in states hosting major data center clusters. This indirect water use is set to increase substantially by 2030, exacerbating water stress in critical regions like Phoenix.

This Wire brief sits within Fusion42's coverage of Cloud Infrastructure.

◆ The Wire takeaway

Electricity's water usage is an overlooked cost for data center operators in the US, especially in drought-prone states. You must now factor regional water risks into site selection and client discussions to avoid operational and reputational risks.

Coverage

1 source · 31 Aug 2026

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Topics

Cloud Infrastructuredata-centerswater-useelectricity-consumptionsustainability