New analysis shows data centers are increasing water stress ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

[Image alt text: Ceres logo] < [link removed] > Dear John,

A new Ceres analysis provides a comprehensive picture of water impacts that are tied to data centers and pose increasing risks to data center companies, high-tech businesses, and investors.

Drained by Data: The Cumulative Impact of Data Centers on Regional Water Stress < [link removed] > , uses Phoenix, Arizona, a water-stressed region and booming data center hub, as an example of data center water impacts playing out in the United States and in data center hot spots across the globe.

The analysis—developed in partnership with Cathy Financial Holdings and with research and analysis from Bluerisk—reveals that, in addition to water used in data centers for cooling, even more is needed to generate electricity to power them. In the coming years, annual water use from data center electricity demand is expected to increase by 400% in the Phoenix region—enough water to supply the city of Scottsdale, Arizona, or 240,000 people, for over 2 years. [Image alt text: The 2025 Progress Report: Climate Risk Reporting in the U.S. Insurance Sector] < [link removed] >

Read the Analysis < [link removed] >

With artificial intelligence (AI) driving rapid growth in data centers, the analysis makes clear that to protect their business, companies and investors need to assess water risks more broadly, including impacts from direct and indirect water demand and the added strain of concentrated clusters of data center on local water supplies.

As more data centers come online around the globe, it’s critical companies, investors, policy makers and stakeholders—including water manager and energy providers—understand the full extent of water risks they face and work together to expand solutions to ensure adaptable water supplies and resilient communities and businesses.Thank you, [Image alt text: Headshots 150x150 James]

Kirsten James

Senior Program Director, Water

Ceres [Image alt text: LinkedIn_icon 100px.png] < [link removed] >

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