Water Energy Planning Strategies to meet Emerging Load from Data Centers

This white paper discusses the urgent need for innovative management of energy and water resources in the context of rapidly growing data centers, particularly as U.S. electricity demand is projected to increase by 35 to 40% by 2040 due to the rise of artificial intelligence (AI). Meeting this demand could require immense quantities of water for cooling, which may strain existing supplies and impact other sectors negatively.

The white paper highlights that while data center developers are exploring air-cooled technologies as a solution, these methods can lead to increased energy consumption and may not be effective for high-heat-load data centers. Large-scale water infrastructure projects are deemed impractical for the immediate needs of data centers, underscoring the necessity for localized and innovative solutions.

Furthermore, the governance of water and energy varies significantly across states, complicating the operational landscape for data centers. Many states have not explicitly recognized data centers, leaving decisions to local authorities, which can create inconsistencies in resource management. Addressing these non-technical challenges is crucial for aligning technologies with local and regional requirements.

The paper stresses the importance of integrating data centers into broader infrastructure planning strategies, which should include evaluations of trade-offs, load growth forecasts, and cost-benefit analyses. Collaboration among data center operators, utilities, and research institutions is essential, supported by comprehensive modeling and analysis.

Two key metrics for assessing data center efficiency are Power Usage Effectiveness (PUE) and Water Usage Effectiveness (WUE). While improving both metrics is critical for operational efficiency, their interdependencies must be considered, especially regarding embedded water and energy usage in power generation and water treatment.

Success would ultimately be measured by deployment of large data centers without compromising other water uses. This would require creating local and regional frameworks for replicating energy-water systems, promoting stakeholder engagement, coordinating policies between energy and water operators, and designing innovative systems that benefit both infrastructure and surrounding communities.