California Report: Data Centers Are Moving Into Water-Stressed, Vulnerable Communities

A first-of-its-kind statewide report released May 14, 2026 reveals that California's rapidly expanding data center industry is deliberately moving into communities that are both water-stressed and socioeconomically vulnerable — and that the public lacks even basic data to understand or challenge what's happening.

The report, The Intersection of Data Center Development, Water Availability, and Environmental Justice In California, was published by nonpartisan think tank Next 10 and authored by researchers at Santa Clara University, including hydrologist and Water and Climate Justice Lab leader Iris Stewart-Frey.

What the Report Found

The report analyzed every known operating and planned data center in California through a combined water access and social vulnerability lens. Key findings:

• Newer, large-scale data centers are increasingly sited away from traditional urban tech hubs and into towns with already-constrained water supplies
• The Central Valley and Imperial Valley are the regions where water scarcity and social vulnerability most acutely overlap — and major new data center projects are being planned there right now
• Many planned facilities rely on imported water from already-stressed basins, effectively shifting water pressure across entire regions
• Smaller, groundwater-dependent communities face the highest risk
• Publicly available information on data center water use is extremely limited, making independent oversight nearly impossible

'When large, water-intensive facilities are added into these areas, the impacts extend beyond a single site. They add cumulative pressure on regional water supplies, reduce drought resilience, and make it more difficult to balance the needs of communities, ecosystems, agriculture, and other industries over time.' — Iris Stewart-Frey, Santa Clara University

The Transparency Problem

'Right now, there is a fundamental lack of transparency around how much water data centers use and what type of water they are using. Without that information, it is incredibly difficult to plan responsibly or evaluate community tradeoffs.' — Stephanie Leonard, Director of Research, Next 10

Data center operators are not currently required to disclose water consumption in most California jurisdictions. Permits are frequently not required at all. What we cannot measure, we cannot protect against.

Environmental Justice at the Core

Irina Raicu, director of the Internet Ethics Program at Santa Clara University's Markkula Center for Applied Ethics:

'Water scarcity and socioeconomic vulnerability often go hand in hand. AI may seem abstract, but its infrastructure has very real impacts. In California, where unequal access to water has been a longstanding issue, more equitable and better informed siting and planning processes are essential.'

In California's Central Valley — already one of the most economically distressed regions in the state — communities of farmworkers and low-income residents who have fought for decades over groundwater rights now face a new extraction threat from hyperscale computing infrastructure built to serve trillion-dollar tech corporations.

What Needs to Change

• Mandatory water use disclosure for all data centers, operating and proposed
• Consistent environmental review before permits are granted
• Integrated planning that considers water, energy, and community impacts together
• Inclusive decision-making that gives frontline communities a real voice

As Stewart-Frey concluded: 'Efficiency claims by corporations mean little without transparency and accountability. We can't manage what we cannot measure — and right now, data center water use is largely invisible.'

The Bigger Picture

This report joins a growing body of evidence that the AI data center boom is being built on the backs of communities least able to resist it. Investors are now pressuring Amazon, Microsoft, and Google for transparency after data centers consumed nearly 1 trillion liters of water in 2025. A 2026 Pew Research poll confirmed broad public opposition nationally.

Sources and Citations

• Next 10 / Santa Clara University — The Intersection of Data Center Development, Water Availability, and Environmental Justice in California, May 14, 2026
• Business Wire — Data Centers Expanding into Water-Stressed, Vulnerable Communities Across California, May 14, 2026
• Finance and Commerce — Investors Pressure Tech Companies Over Data Center Water, Power Use, April 2026
• Pew Research Center — How Americans View Data Centers Impact, March 2026
• Harvard Gazette — Why Are Communities Pushing Back Against Data Centers?, April 2026