The role of water in the high-growth data center market is fast becoming a critical factor in site selection, design, and operations. By 2030, annual water-related capital and operational expenditures are forecasted to reach US$797.1M, representing a 31.4% increase from today. According to a new report from Bluefield Research, U.S. Water for Data Centers: Market Trends, Opportunities, and Forecasts, 2025–2030, this surge in activity is accelerating—driven by artificial intelligence (AI)-fueled growth, mounting local concerns over water availability, and the tech sector’s urgent push to safeguard operational resilience amid growing environmental scrutiny. Hyperscale data centers, which currently represent 51.4% of total market demand, are forecasted to withdraw 150.4 billion gallons of water between 2025 and 2030. This volume is equivalent to the annual water withdrawals of 4.6 million U.S. households.

Other data center water use news:

• KGUN (Tucson, Ariz.): Project Blue now up to Tucson City Council
• Environmental and Energy Study Institute: Blog: Data centers and water consumption
• Data Centre Magazine: Staying out of hot water with a smart water strategy
• Arup: Blog: Water and the sustainable data center