Data center water demand projected to surge by 2028

A report says US data centers could increase water consumption from 17.4 billion gallons in 2023 to 72.6 billion gallons by 2028 as drought and scarcity concerns grow. It suggests reusing treated industrial discharge onsite and notes that the EPA’s 2026 water-reuse plan, involving Amazon Web Services, aims to address regulatory barriers to recycled-water cooling. The analysis also points to possible legislative pressure for a data center moratorium in Oklahoma.
A recent report estimates U.S. data centers could use 72.6 billion gallons of water in 2028, up from 17.4 billion gallons in 2023. It ties this rise to drought and scarcity pressures and suggests capturing and reusing processed industrial wastewater at facilities as a mitigation approach.
An EPA initiative planned for 2026, with Amazon Web Services involved, aims to ease regulatory obstacles to cooling with recycled water. In Oklahoma, Governor Kevin Stitt and the Legislature are focal points for a possible temporary ban on data centers; related coverage mentions AWS disclosure disputes and Amazon’s caution that halting projects might harm the economy and security.
As data center water demand may climb, communities in drought-prone regions could face greater competition for limited supplies, while utilities and regulators may need new reuse rules and infrastructure. Industry could bear higher compliance and cooling costs, potentially affecting electricity/water rates and local economic development. Oklahoma residents and policymakers may weigh job and tax benefits against environmental and transparency concerns. The outcome may shape how other states balance digital growth with water security.