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, 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.
Given the water demands, water stress in the region could increase by as much as 32%. | | | |
| | 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.
Some companies are making good progress addressing water use within their facilities, but this work should extend beyond fence lines. Growing water risks from data centers can’t be
solved by any one company. It’s critical all stakeholders—including water managers, energy providers and policy makers—understand the full extent of water challenges their regions face from data centers and collaborate on solutions to ensure resilient water supplies, communities, and businesses. | | | | | 
Kirsten James
Senior Program Director, Water
Ceres | | | |
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Ceres is a nonprofit advocacy organization working to accelerate the transition to a cleaner, more just, and resilient world.    
| | | | | | Ceres is proud to receive these accolades as a reflection of our effectiveness, integrity and impact.
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