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Report: Data Centers Expanding into Water-Stressed, Vulnerable Communities Across California

As demand for artificial intelligence and cloud computing accelerates, large-scale data centers which require significant water resources for cooling are increasingly being sited in regions already facing constrained supplies due to climate change and reliance on imported water. A new report by Next 10, led by researchers at Santa Clara University, finds that California’s rapidly expanding data center industry is increasingly intersecting with regions facing water scarcity as well as environmental injustice—raising concerns about long-term water sustainability and community vulnerability. The report, The Intersection of Data Center Development, Water Availability, and Environmental Justice In California, is the first comprehensive analysis of every known operating and planned data center in California through a combined water access and environmental justice lens. This report assesses the intersection of direct water use by data centers with water availability and distribution in California, focusing on the potential impact of large-scale data center operations on local water resources. The report also evaluates how data centers might affect the water access and sustainability for communities located near these facilities, highlighting potential disparities in water access for particularly vulnerable communities. As part of this assessment, it developed a comprehensive database of California data centers, as well as a newly developed index to evaluate water scarcity and community vulnerability. For the vast majority of the data centers mapped, there were no publicly accessible environmental planning documents, or information on cooling systems or the type of water used—highlighting a broader challenge for communities, water providers, and researchers attempting to assess to what degree data centers affect water supplies. The report identified five data centers—three existing and two planned—to serve as case studies to further evaluate the water scarcity and social vulnerability associated with these facilities. The planned data center in Imperial County and existing facility in Sacramento were identified as areas where water scarcity and social vulnerability most acutely overlap. Smaller, groundwater-dependent communities, such as Gilroy, the site of the other planned data center case study, face heightened risks, as they often lack the diversified water supplies and financial flexibility of larger urban systems, while many planned facilities rely on imported water from already- stressed basins—effectively shifting water pressures across regions already confronting climate-related challenges. The report concludes that while data centers are an essential part of California’s digital economy, their continued expansion must be accompanied by stronger transparency, more consistent environmental review, and integrated planning that considers water, energy, and community impacts together. With more comprehensive data and inclusive decision-making, California has the opportunity to align data center growth with its broader climate, water, and environmental justice goals. Join Next 10 and Santa Clara University on Thursday, June 11th at 11am PT for a webinar with report authors, Iris Stewart-Frey and Irina Raicu, to discuss the report's key findings, implications, and recommendations for policymakers, local governments, and data center facilities. Register here.

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