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Operators of hyperscale data centers, those with more than 5,000 servers, are migrating to places where water is plentiful, such as Norway, but also to drought-prone places like Italy and Spain where energy is cheaper—and where extreme heat is becoming the norm.

A survey conducted last year by the Uptime Institute, a consulting firm, found that only 39% of data centers even tracked their water use, a 12 percentage-point drop from 2021. Tech companies in the past have refused to disclose information about individual centers’ energy and water consumption, claiming that such data was a trade secret.

Over the last couple of years, Google, Meta and Microsoft have started publishing their total water use across their operations, but they don’t break the number down by business unit nor use standardized metrics. Bluefield Research has estimated data centers use more than a billion liters of water per day, including water used in energy generation.

Operators often use shell companies to apply for planning permissions, and a data center can look like any large warehouse or factory from the outside.

Arman Shehabi, a researcher at the Lawrence Berkeley National Laboratory in California best known for a landmark paper on energy consumption at data centers, thinks the facilities could contribute to scarcity as droughts become longer and more intense. Part of the problem, he says, is that data center operators “are generally the last ones to the table to ask,” straining the system by asking for access to scarce water after agricultural interests and local communities have already come up with a plan. “Everybody is going to feel that,” he says.

Companies say data centers are getting more energy-efficient, but the increase in overall demand for computing power is outpacing such gains.

The specialized chips required for AI—broadly known as accelerators—emit so much more heat than general-purpose chips do that data center operators are having to rethink their cooling systems entirely

over time data centers will need to radically change the way they dissipate heat. The gold standard, he says, is a process called immersive cooling, in which servers are bathed in a special fluid that transfers heat from the chips. For now, operators are likely to opt for a hybrid model, wherein a high-performance section of the data center will be liquid-cooled while the rest will continue to use air conditioning

Amazon Web Services, Google and Microsoft have all made water stewardship pledges, promising to use more nonpotable and recycled water and to replenish more water than they consume operationally by 2030. This is the equivalent to offsetting carbon by planting trees—something that looks good on paper but may not directly benefit the communities affected by data centers, because water may be replenished only in places where it’s easy to do so.