Data centers fueling AI and crypto strain Western power and water supplies – ehn.org

Report on Data Center Expansion and its Conflict with Sustainable Development Goals in the Western United States
Executive Summary
The rapid proliferation of large-scale data centers in the arid Western United States poses a significant challenge to the achievement of multiple Sustainable Development Goals (SDGs). Driven by the growth of artificial intelligence and cryptocurrency, these facilities are creating unprecedented demand for water and electricity, placing severe strain on local resources and communities. This report analyzes the conflict between current industrial development practices and key sustainability targets, particularly those related to water, energy, climate, and sustainable communities.
Analysis of Impacts on Sustainable Development Goals
SDG 6: Clean Water and Sanitation & SDG 13: Climate Action
The expansion of data centers directly undermines progress toward ensuring the availability and sustainable management of water. In regions already experiencing climate change-induced drought, the industry’s consumption patterns create a critical conflict with SDG 6.
- Major technology firms, including Google, Meta, and Microsoft, are consuming billions of gallons of potable water annually for cooling servers in drought-stricken states like Arizona and Nevada.
- This intensive water use competes directly with the needs of local communities and ecosystems, exacerbating water scarcity in areas where climate change is already diminishing reservoirs, a direct challenge to SDG 13’s call for climate resilience.
- The physical footprint of the “cloud” is tethered to scarce natural resources, contradicting the goal of sustainable water management for all.
SDG 7: Affordable and Clean Energy & SDG 11: Sustainable Cities and Communities
The immense energy requirements of data centers threaten the transition to clean energy and place a heavy burden on local communities, conflicting with SDG 7 and SDG 11.
- The International Energy Agency projects that electricity demand from data centers will double by 2030.
- To meet this demand, utilities are planning new natural gas power plants and delaying the retirement of coal-fired facilities, which runs counter to the clean energy targets of SDG 7.
- This reliance on fossil fuels increases greenhouse gas emissions and contributes to higher energy prices for local residents, jeopardizing the goal of making cities and human settlements inclusive, safe, resilient, and sustainable (SDG 11).
SDG 9: Industry, Innovation, and Infrastructure & SDG 12: Responsible Consumption and Production
While data centers represent a form of modern infrastructure and innovation (SDG 9), their current growth model is unsustainable and highlights irresponsible consumption patterns (SDG 12).
- Each warehouse-sized data center consumes electricity on par with a small city, revealing the hidden resource intensity behind digital services.
- State and local governments often provide tax incentives to attract these facilities, promoting a form of industrialization that fails to align with sustainable infrastructure principles.
- The supposedly “weightless” digital economy demonstrates a consumption pattern that externalizes significant environmental costs, including water depletion and carbon emissions, thereby failing the core tenets of responsible production.
Which SDGs are addressed or connected to the issues highlighted in the article?
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SDG 6: Clean Water and Sanitation
The article directly addresses this goal by highlighting the massive consumption of “billions of gallons of potable water annually” by data centers, particularly in “drought-stricken regions like Arizona and Nevada.” This raises concerns about water scarcity and sustainable water management.
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SDG 7: Affordable and Clean Energy
This goal is relevant due to the immense electricity demand of data centers. The article states that this demand is so high that utilities “plan more natural gas plants and delay coal retirements to meet soaring power needs,” which runs counter to the goal of increasing the share of clean energy.
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SDG 9: Industry, Innovation, and Infrastructure
The article discusses the construction of “massive data centers,” which are a form of industrial infrastructure. However, it questions their sustainability, noting their significant “environmental toll” and reliance on scarce resources, which conflicts with the goal of building resilient and sustainable infrastructure.
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SDG 11: Sustainable Cities and Communities
The impact on local communities is a key issue. The article mentions that these communities face “higher energy prices, water competition, and increased emissions from fossil-fueled backup power,” which affects their environmental quality and economic well-being.
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SDG 12: Responsible Consumption and Production
The core issue is the unsustainable consumption pattern of the digital economy. The article reveals the “hidden costs of a supposedly weightless ‘cloud’ that is, in reality, tethered to scarce natural resources,” pointing to the inefficient use of water and energy.
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SDG 13: Climate Action
The reliance on fossil fuels to power data centers directly impacts climate change. The article’s mention of plans for “more natural gas plants” and delayed “coal retirements” indicates an increase in greenhouse gas emissions, undermining climate action efforts.
What specific targets under those SDGs can be identified based on the article’s content?
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SDG 6: Clean Water and Sanitation
- Target 6.4: By 2030, substantially increase water-use efficiency across all sectors and ensure sustainable withdrawals and supply of freshwater to address water scarcity. The article’s focus on data centers consuming “billions of gallons of potable water annually” in “drought-stricken regions” directly relates to the challenge of water-use efficiency and sustainable withdrawals.
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SDG 7: Affordable and Clean Energy
- Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix. The article shows a trend moving away from this target, as utilities “plan more natural gas plants and delay coal retirements” to power the data centers.
- Target 7.3: By 2030, double the global rate of improvement in energy efficiency. The projection that “data center electricity and water demand will double by 2030” suggests a decrease, not an improvement, in energy efficiency for this growing sector.
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SDG 9: Industry, Innovation, and Infrastructure
- Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency. The article highlights that the new data center infrastructure has a massive “environmental toll” and is not resource-efficient, directly challenging the goal of this target.
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SDG 11: Sustainable Cities and Communities
- Target 11.6: By 2030, reduce the adverse per capita environmental impact of cities. The “increased emissions from fossil-fueled backup power” and “water competition” directly contribute to the adverse environmental impact on local communities where these facilities are located.
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SDG 12: Responsible Consumption and Production
- Target 12.2: By 2030, achieve the sustainable management and efficient use of natural resources. The article’s central theme is the unsustainable use of water and energy, describing how the digital “cloud” is “tethered to scarce natural resources.”
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SDG 13: Climate Action
- Target 13.2: Integrate climate change measures into national policies, strategies and planning. The decisions by states to offer “tax breaks to attract server farms” while utilities increase reliance on fossil fuels demonstrate a failure to integrate climate considerations into economic and energy planning.
Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
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SDG 6: Clean Water and Sanitation
- Implied Indicator for Target 6.4: Level of water stress (Indicator 6.4.2). The article implies this by describing massive water withdrawals (“billions of gallons”) in “drought-stricken regions” with “shrinking reservoirs,” which are key components for measuring water stress.
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SDG 7: Affordable and Clean Energy
- Implied Indicator for Target 7.2: Renewable energy share in total final energy consumption (Indicator 7.2.1). The article implies a negative trend for this indicator by stating that utilities are planning “more natural gas plants and delay coal retirements.”
- Implied Indicator for Target 7.3: Energy intensity. The projection that “data center electricity… demand will double by 2030” is a direct measure of energy consumption growth, which can be used to assess energy intensity and efficiency trends.
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SDG 9: Industry, Innovation, and Infrastructure
- Implied Indicator for Target 9.4: CO2 emission per unit of value added (Indicator 9.4.1). The mention of “increased emissions from fossil-fueled backup power” points to the carbon intensity of this infrastructure, which is a measure of its environmental sustainability.
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SDG 12: Responsible Consumption and Production
- Implied Indicator for Target 12.2: Material Footprint (Indicator 12.2.1). The article quantifies the resource use in terms of “billions of gallons of potable water” and electricity consumption “on par with a small city,” which are direct inputs for calculating the material footprint of these data centers.
Table of SDGs, Targets, and Indicators
SDGs | Targets | Indicators Identified in Article |
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SDG 6: Clean Water and Sanitation | 6.4: Increase water-use efficiency and address water scarcity. | Volume of water consumption (“billions of gallons of potable water annually”) in water-stressed areas (“drought-stricken regions”). |
SDG 7: Affordable and Clean Energy | 7.2: Increase the share of renewable energy. 7.3: Improve energy efficiency. |
Increased reliance on fossil fuels (“more natural gas plants,” “delay coal retirements”). Projected doubling of electricity demand by 2030. |
SDG 9: Industry, Innovation and Infrastructure | 9.4: Upgrade infrastructure to be sustainable and resource-efficient. | “Increased emissions from fossil-fueled backup power” as a measure of the infrastructure’s environmental toll. |
SDG 11: Sustainable Cities and Communities | 11.6: Reduce the adverse per capita environmental impact of cities. | Impacts on local communities: “higher energy prices, water competition, and increased emissions.” |
SDG 12: Responsible Consumption and Production | 12.2: Achieve sustainable management and efficient use of natural resources. | The “physical footprint” of data centers, including vast consumption of water and electricity (“on par with a small city”). |
SDG 13: Climate Action | 13.2: Integrate climate change measures into policies and planning. | State policies (“tax breaks”) that encourage energy-intensive industries reliant on fossil fuels. |
Source: ehn.org