Regulating Data Center Water Use in California

A new policy report by UC Berkely Law entitled "Regulating Data Center Water Use in California" addresses the environmental impact of the AI-driven data center boom on the state's water resources.

The report identifies a critical lack of transparency and a fragmented regulatory framework, offering a roadmap for how the state and industry should manage this growth.

Key Takeaways:

  • Transparency Gap: There is currently no clear understanding of exactly how much water data centers use or where they source it. Existing reporting requirements are insufficient, making it difficult to define "efficient" use or compare data centers to other industries.

  • The Energy-Water Trade-off: Cooling servers requires a balance between water and electricity. Often, cooling systems that save water require significantly more energy, and vice versa.

  • Regulatory Patchwork: Oversight is currently inconsistent across California, leaving local governments to make major decisions without standardized guidance or a full understanding of the long-term strain on local resources.

  • Irreversibility: The report warns that once a data center is built, its environmental footprint is largely locked in. The state must act now, before the current construction surge creates permanent negative impacts on local ecosystems.

The report suggests a coordinated effort between the state, local governments, and the tech industry in needed. Here are some recommended steps:

1. Mandatory Reporting: Expand state requirements for data center operators to report both anticipated and actual water use, regardless of the water source.

2. State Guidance for Localities: California should provide local governments with "model regulations" and tools to help them evaluate data center proposals more effectively.

3. Efficiency Mandates: Use zoning and land-use planning to require the use of recycled water and high-efficiency cooling technologies.

4. Strategic Siting: The industry should prioritize building in areas with low "water stress" and be more transparent about site-specific impacts in corporate sustainability reports.

To balance digital innovation with environmental protection, California must move quickly. By prioritizing transparency and efficiency now, the state can mitigate the water-related risks posed by the rapidly expanding AI infrastructure.

Access the full report here. 

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shaina

Shaina Shay is an accomplished water professional with over a decade of experience in water policy, management, conservation, and community outreach. Her passion for pragmatic information sharing drives her work across the U.S. and Australia, where she has held roles with investor-owned utilities and as a senior water market specialist. Shaina's commitment to the field is reflected in her leadership positions within the American Water Works Association (AWWA), American Society of Civil Engineers (ASCE), and the Southern Arizona Water Users Association (SAWUA).