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Arizona's Data Center Boom Sparks Water and Power Concerns

9/17/2025

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Story summary
  • Arizona's data center sector is expanding quickly, prompting concerns about water and power resources, exemplified by Tucson's rejection of a $3.6 billion project due to public opposition.
  • Data centers represented 4.4% of U.S. electricity consumption in 2023, expected to increase to 12% by 2028, with high water usage for cooling.
  • Local governments face challenges weighing economic benefits against environmental impacts, as seen in Delaware's Project Washington proposal.
  • Nuclear energy is being explored as a sustainable power source for data centers amid rising energy demands.
  • States are introducing regulations to manage data centers' effects on local resources and ratepayers.