Futures

Impact of Drought on Data Centers and Water Usage in the U.S., (from page 20221204.)

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Summary

Drought conditions in the U.S. are intensifying, significantly affecting data centers that rely heavily on water for cooling. These facilities can consume up to 300,000 gallons of water daily, equivalent to the needs of 100,000 homes. With many data centers situated in water-stressed areas, companies like CyrusOne and Meta are adopting innovative cooling methods to reduce water use. Meta aims to restore more water than it consumes by 2030, while Microsoft plans to be “water positive” by the same year. Despite these efforts, the overall water consumption of major tech firms continues to rise amid worsening drought conditions across the country, affecting over 50% of the U.S.

Signals

name description change 10-year driving-force relevancy
Drought Impact on Data Centers Worsening drought conditions are affecting water-dependent data centers in the U.S. Shift from reliance on water cooling methods to alternative cooling technologies. Data centers may adopt fully water-independent cooling systems, enhancing sustainability. Increasing awareness of climate change and water scarcity pushing for innovative cooling solutions. 4
Rise of Water-Saving Technologies Companies are developing technologies to reduce water consumption in data centers. Transition from traditional cooling methods to advanced, water-saving techniques. Data centers could become largely water-positive, contributing to regional water sustainability. Corporate responsibility and sustainability goals driving innovation in water conservation. 5
Investment in Co-location Data Centers Private equity firms are investing heavily in co-location data centers despite drought risks. Growth in co-location data centers as a lucrative investment opportunity amid environmental challenges. Co-location data centers may evolve into specialized facilities with advanced climate-resilient designs. High returns on investment attracting capital into the data center market, regardless of environmental risks. 4
Corporate Water Goals Major tech companies like Meta and Microsoft are setting ambitious water goals. From high water consumption to commitments for water positivity by 2030. Tech companies could lead in water restoration efforts, influencing industry standards globally. Public pressure and regulatory requirements for sustainability in business operations. 5
Climate Crisis Innovation The urgent need for innovation to address the climate crisis is being prioritized. Shift from traditional practices to innovative solutions for environmental challenges. A surge in eco-innovations may lead to a more sustainable tech industry, reducing ecological footprints. The pressing nature of climate change is accelerating the pace of technological advancements. 4

Concerns

name description relevancy
Increasing Water Stress on Data Centers The growing drought conditions are leading to increased water stress for data centers, posing risks to their operations and sustainability. 5
Dependence on Water for Cooling Data centers’ reliance on large amounts of water for cooling may become problematic as droughts worsen, risking their viability. 5
Rising Real Estate Demand for Data Centers The surge in co-location data centers as high-growth real estate may overlook the environmental impacts of their water consumption. 4
Ineffective Water Restoration Efforts Companies like Meta and Microsoft, while aiming for water positivity, may not effectively offset the rising total water consumption amid increasing operational demands. 4
Long-term Viability of Data Centers in Drought Areas Data centers built for long-term operation may face sustainability challenges in regions experiencing severe and prolonged drought. 5
Future Impact of Climate Change on Infrastructure As climate conditions worsen, infrastructure like data centers may require significant innovation and adaptation to survive and function. 5

Behaviors

name description relevancy
Water-Efficient Cooling Systems Data centers are adopting zero-water consumption cooling methods to mitigate risks associated with drought and water scarcity. 5
Water Restoration Initiatives Companies like Meta and Microsoft are setting goals to restore more water than they consume, addressing water stress issues. 4
Innovation in Resource Management Investment in innovative technologies for recycling and managing water resources in data centers is increasing due to climate challenges. 5
Private Equity Investment in Data Centers Private equity firms are increasingly investing in co-location data centers, driven by their profitability despite climate risks. 4
Climate-Driven Design Changes Data center designs are evolving to incorporate climate considerations, such as humidity reduction and rainwater collection. 4

Technologies

description relevancy src
Data centers are developing systems that operate with zero water consumption to mitigate drought risks. 5 9ac7942b1052f8ef229db18aae468c4d
Techniques to collect and utilize condensation in arid regions for cooling data centers, reducing reliance on external water sources. 4 9ac7942b1052f8ef229db18aae468c4d
Innovative methods to recycle almost all water used in data centers, aiming for sustainability and water positivity. 5 9ac7942b1052f8ef229db18aae468c4d
Technologies aimed at lowering humidity levels in data centers to decrease water consumption and improve efficiency. 4 9ac7942b1052f8ef229db18aae468c4d
Collecting rainwater for cooling and operational needs in data centers located in regions with sufficient rainfall. 3 9ac7942b1052f8ef229db18aae468c4d

Issues

name description relevancy
Water Dependency of Data Centers Data centers’ reliance on large quantities of water for cooling presents risks as drought conditions worsen in the U.S. 5
Drought Impact on Real Estate The growing drought conditions are affecting the viability and operational costs of real estate sectors, particularly data centers. 4
Innovation in Cooling Technologies The need for innovative cooling solutions to reduce water consumption in data centers, especially in drought-stricken areas. 4
Private Equity Acquisition of Data Centers The trend of private equity firms acquiring co-location data centers for investment raises concerns about sustainability practices. 3
Long-term Sustainability of Data Centers The future sustainability of data centers amid worsening drought conditions poses critical questions for the industry. 5
Corporate Water Restoration Efforts Tech companies’ initiatives to restore more water than they consume highlights a growing corporate responsibility trend. 3
Rising Water Stress Awareness Increased recognition of water stress and its implications for data center operations may lead to regulatory changes. 4