Residents warn of strain on water supply as AI data hubs bloom out west

Industry Overview - Data centers are rapidly expanding across the US, particularly in water-scarce regions, to meet the demands of artificial intelligence [3][5] - The industry is experiencing pushback in some states like Arizona and Texas due to concerns about water and power consumption [5][6] Environmental Impact - Data centers consumed an estimated 200 billion gallons (757 billion liters) of water in 2023 [5] - Water usage by data centers is equivalent to the consumption of approximately 500,000 people [5] - Two-thirds of new US data centers are being built in water-scarce regions [5] Regional Development and Concerns - Northern Nevada, specifically the Tahoe Reno Industrial Center, is becoming a major hub for AI data centers [1][3] - Residents are worried about rising utility bills and potential water shortages due to the energy and water-intensive nature of data centers [8][9] - A major development vote will decide the future of data centers within city limits, potentially setting a precedent for future development in the region [15] Potential Solutions - Sparks, Nevada is exploring the use of treated wastewater (effluent) for data center cooling [10][11] - A 20-mile (32 km) effluent pipeline has been installed to supply reclaimed water for cooling, potentially covering 95% of cooling needs [12] Economic Considerations - Data centers are seen as a means of economic diversification for regions heavily reliant on tourism and casinos [13]