A recent report from the Interstate Commission on the Potomac River Basin examines how the rapid growth of data centres is shaping water use across the Potomac River, a vital source of drinking water for millions.
The Potomac River basin, which supplies water to millions of people in Washington, D.C., Maryland, Virginia, and surrounding states, has become the largest concentration of data centres globally. This expansion is driven by rising demand for cloud computing and artificial intelligence services.
According to the report, data centres require water primarily for cooling their equipment. On average, existing facilities in the basin use about 800 gallons of water per day per megawatt of capacity, with roughly 75 per cent of that water considered consumptive, meaning it is not returned to the watershed.
The study places this demand within a broader “water-energy nexus,” where electricity production and water use are closely linked. Data centres increase pressure not only through direct water withdrawals, but also indirectly through the water required to generate the electricity they consume.
Projections cited alongside the report indicate that water use from data centres could grow substantially in the coming decades. In the Washington metropolitan area alone, peak demand from these facilities could reach up to 80 million gallons per day by 2050, reflecting continued industry expansion.
The findings emphasise the need for coordinated planning between water utilities, energy providers, and local governments
The report does not present data centres as the only factor affecting water availability. It highlights a combination of pressures, including population growth, climate variability, and existing infrastructure limits. Previous studies referenced by the commission suggest that under severe drought conditions, the region’s water supply could face shortfalls as early as 2030.
Another issue identified is limited transparency around water use. The report notes that improving data availability could support better planning and resource management as the sector grows.
The findings emphasise the need for coordinated planning between water utilities, energy providers, and local governments. Suggested approaches include improving reporting on water use, evaluating cumulative impacts of new facilities, and integrating water considerations into decisions about energy and land use.
The report frames data centres as part of a broader challenge: balancing economic development and digital infrastructure growth with the long-term sustainability of water resources in the Potomac River basin.
