Commerce Secretary Howard Lutnick claimed Wednesday that data centers "don't use water" during an interview with CNBC, a statement that contradicts well-documented concerns about the facilities' significant water consumption for cooling systems.
The comment comes as communities across the country raise alarms about hosting large-scale data center operations, citing water availability and environmental impact among their primary concerns. Data centers typically rely on evaporative cooling systems to maintain optimal temperatures for computing equipment, a process that requires substantial water resources.
What the Right Is Saying
Supporters of the administration argue that concerns about data center water consumption are being overstated relative to other industrial uses. Industry groups note that cooling technology continues to evolve toward more efficient systems.
"Secretary Lutnick is focused on removing regulatory barriers to AI development, which is essential for American competitiveness," said a Commerce Department spokesperson in a follow-up statement clarifying the secretary's remarks. "The administration supports ongoing innovation in sustainable data center design."
Republican lawmakers have largely backed the administration's push to accelerate permitting for digital infrastructure, arguing that economic benefits and technological advancement should be weighed against environmental considerations.
What the Left Is Saying
Environmental advocates and community groups say Lutnick's statement ignores well-established facts about data center operations. Organizations including the Sierra Club and local water conservation groups have documented how large-scale facilities consume millions of gallons annually.
"This is exactly the kind of misinformation that communities dealing with proposed data centers in their backyards have to fight against," said an environmental advocate with a regional water protection organization who requested anonymity to speak freely about ongoing regulatory matters. "The science on this is clear."
Democratic lawmakers from states with dense tech infrastructure, including Virginia and Georgia, have introduced legislation requiring greater transparency from data center operators regarding water usage and mitigation strategies.
What the Numbers Show
According to industry data from the International Data Corporation, U.S. data centers consumed approximately 1.5 trillion gallons of water in 2023, a figure projected to increase as AI development drives expansion. A single large-scale facility can use between 1 and 5 million gallons of water daily, depending on cooling systems employed.
Microsoft disclosed in its 2024 environmental report that its global data center operations consumed 6.4 million cubic meters of water, up 34 percent from the previous year, largely attributed to AI infrastructure buildout. Google reported similar increases over the same period.
The Bottom Line
Lutnick's claim contradicts established engineering and environmental science regarding data center operations. Communities near proposed facilities will likely continue to raise water consumption as a key concern in zoning and permitting battles. Watch for updated EPA guidance on industrial water usage reporting requirements, expected later this year.