Data Centers Threaten Colorado's Dwindling Water Supplies

Hyperscale facilities guzzle water as Western drought intensifies, putting 40 million people at risk

Apr. 8, 2026 at 4:37pm

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A highly detailed, glowing 3D illustration of a massive data center server farm, with neon cyan and magenta lights illuminating the complex network of cables, cooling systems, and computer hardware, conceptually representing the immense scale and energy consumption of these hyperscale facilities and their impact on the region's water resources.As data centers continue to proliferate in the water-stressed American West, their voracious thirst threatens to exacerbate the region's deepening drought crisis.Denver Today

As the Colorado River basin faces a historic megadrought, a new threat to the region's dwindling water supplies has emerged: the rapid expansion of massive, water-guzzling data centers. These hyperscale facilities can consume as much water as a town of 50,000 people, and their thirst is only growing as the American West grows drier. Experts warn that without immediate action to curb this water-intensive industry, the consequences could be dire for the 40 million people who rely on the Colorado River.

Why it matters

The American West is in the grip of a prolonged megadrought, and the Colorado River basin that supplies water to 40 million people is drying up. Against this backdrop, the sudden surge in construction of massive, water-intensive data centers threatens to exacerbate the region's water crisis, potentially depriving communities of a vital resource.

The details

Hyperscale data centers, which house and operate computer servers, are being built at a rapid pace to meet the growing demand for artificial intelligence and cloud computing. These facilities can consume as much water as a town of 50,000 people to cool their servers. By 2028, U.S. data centers could use as much water as 18.5 million households for this cooling process, with demand only continuing to grow. This comes as the American West, including Colorado, is experiencing a historic and prolonged megadrought that is not expected to improve.

  • In 2025, Colorado's alfalfa farms consumed an estimated 394 billion gallons of water, enough to meet every Denver resident's indoor water needs for over 35 years.
  • In 2022, mega-dairies in Colorado consumed 6.9 billion gallons of water, enough to supply water to 173,000 households.
  • By 2030, it is estimated that 70% of U.S. data center energy demand will come from hyperscale facilities.

The players

Global AI

A company that has purchased over 400 acres near Windsor, Colorado, where it reportedly plans to operate a large data center by the end of the year, with ambitions of expanding the campus to over 1,000 megawatt capacity.

Food & Water Watch

An organization that analyzed agricultural census data and found that Colorado's alfalfa farms and mega-dairies consumed billions of gallons of water, enough to supply water to hundreds of thousands of households.

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What they’re saying

“We must stop the extractive industries that are driving our current water crisis and hold them accountable for the harm they are causing our communities and our water supplies.”

— Amanda Claire Starbuck, Author

What’s next

Federal officials have just months to decide how to divide up the ever-shrinking flow of the Colorado River between the seven river basin states that share it, a decision that will have major implications for the 40 million people who rely on the river for drinking water.

The takeaway

The rapid expansion of water-guzzling data centers in the arid American West, combined with the ongoing megadrought and the water-intensive practices of industries like agriculture, pose a grave threat to the region's dwindling water supplies. Urgent action is needed to curb the water consumption of these major polluters and ensure a sustainable water future for the 40 million people who depend on the Colorado River.