Data Centers in Nevada: A Booming Industry Faces Water Challenges

On the right of the image, in the foreground, is a white sign with 'Google' on it. In the background is a brown building that is the company's data center, backdropped by a clear blue sky and mountains.

The Desert’s Digital Future: Data Centers Transforming the Mountain West

In the heart of the Nevada desert, sprawling data centers are rapidly reshaping the landscape. Brian Armon, a commercial real estate broker, recently drove through the Tahoe Reno Industrial Center, pointing out significant developments like Vantage Data Centers and the under-construction EdgeCore. As Armon notes, these facilities are part of a growing trend where tech giants are converting the desert into a crucial hub for internet infrastructure.




Kaleb Roedel

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Mountain West News Bureau

Google says its data center at the Tahoe Reno Industrial Center uses water to cool its servers with chilled air, similar to an oversized A/C unit.

Within this expansive business park, east of Reno, Nevada, lies what some describe as the largest AI support system on the planet. This data center hub, which is set to be 1.5 times larger than Reno itself, is situated in the driest state in the U.S., yet it demands a considerable volume of water.

Armon highlights the region’s appeal for data centers due to its ample land, minimal natural disasters, and attractive tax incentives. “We’ve had a massive amount of data centers that have shown up, and more that are looking,” Armon noted.

Data centers are not just confined to northern Nevada. States across the Mountain West, including Nevada, Colorado, Wyoming, and Arizona, are offering significant tax breaks to attract these facilities.





This is an image of a fenced-off development site, backdropped by brown mountains. On the right of the image is a sign that says 'Welcome to Powerhouse Reno Data Center.'

Kaleb Roedel

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Mountain West News Bureau

Tech company PowerHouse has plans to build three data centers on its 49-acre property at the Tahoe Reno Industrial Center.

Despite economic benefits, public concern is growing due to the water demands of these centers. In locations like Las Cruces, New Mexico, and Tucson, Arizona, citizens are voicing their concerns. The Sierra Club even challenged a project within Reno.

The main issue is water usage. Data centers need substantial water for cooling servers, functioning like “thirsty crops,” according to Stanford hydrologist Newsha Ajami. “You have to continuously water them,” Ajami explained, which poses challenges during droughts.





This is an image of the large reservoir at the Tahoe Reno Industrial Center in the middle of the high desert on a blue-skied day.

Kaleb Roedel

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Mountain West News Bureau

Water from the Tahoe Reno Industrial Center’s reservoir, which is 50 feet deep and covers 80 acres, supports the data centers, as well as other companies and facilities located on the site.

A federal report anticipates that the demand for water by U.S. data centers, currently at 17 billion gallons annually, could double, driven by climate change impacts like rising temperatures and prolonged droughts, says Sean McKenna of the Desert Research Institute.

Currently, about 75% of the Mountain West is experiencing drought conditions, according to the U.S. Drought Monitor. In Nevada, over half of the groundwater basins are over-allocated, as stated by state data.





Shari Whalen, general manager of the TRI General Improvement District, stands near pumps inside the district’s water reclamation facility.

Kaleb Roedel

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Mountain West News Bureau

Shari Whalen, general manager of the TRI General Improvement District, stands near pumps inside the district’s water reclamation facility.

Shari Whalen, general manager of the Tahoe Reno Industrial Center’s water district, stated that they hold rights to over 4 billion gallons annually, primarily from groundwater and treated wastewater. “Our plan is to fully and responsibly utilize the resources we have,” Whalen emphasized, insisting they won’t import water from elsewhere.

However, the district can access up to 325 million gallons a year from the Truckee River if necessary, which flows into Pyramid Lake, the ancestral home of the Pyramid Lake Paiute Tribe. Tribal Chairman Steven Wadsworth expressed concerns that every drop taken from the river could impact their lake’s water levels, which are vital to their cultural identity.





Steven Wadsworth, chairman of the Pyramid Lake Paiute Tribe, stands on the shore of Pyramid Lake, back-dropped by mountains and a partly cloudy blue sky.

Kaleb Roedel

/

Mountain West News Bureau

Steven Wadsworth, chairman of the Pyramid Lake Paiute Tribe, says water for new data centers could mean less water reaching Pyramid Lake.

Nevada already hosts approximately 60 data centers, with plans for a dozen more. These facilities may eventually rely on water from the river feeding Pyramid Lake, leading to concerns about long-term sustainability.

ABOUT OUR WIRED, WIRED WEST PROJECT

Data centers are booming across the Mountain West as big tech moves to solve its AI storage problem. Nondescript, square, warehouse-type buildings are popping up in neighborhoods, open plains, and rolling foothills. The burgeoning industry leaves many communities grappling with the prospects of increased air pollution, dwindling water supplies, and higher utility bills. All this even as climate models predict more heat, drought and other weather extremes across the Mountain West.

Read the entire series here.

The Mountain West News Bureau is a collaboration between public media stations in Arizona, Colorado, Idaho, Nevada, New Mexico, Utah and Wyoming along with NPR.

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