Arizona Faces Water Challenges Amid Data Center Growth
Arizona is grappling with significant water usage concerns as the state faces a 27-30% reduction in its Colorado River water allocation, following a federal two-year plan announced on August 21, 2026. Data centers, which are growing rapidly in Arizona, are under scrutiny for their water consumption, particularly in the Phoenix area where many are located. A 2025 report by Ceres estimated that data centers in Phoenix use 385 million gallons of water annually for cooling, with total water usage, including power generation, reaching 3.3 billion gallons. However, agriculture remains the largest water consumer in the state, accounting for 72% of usage, according to the Arizona Department of Water Resources (Cronkite News, 2026). Source time: 2026-09-13 15:15:45 GMT.