University of Colorado Boulder Report Details State Data Center Water Policies

The University of Colorado Boulder released a report titled "Thirst for Data: State Responses to Data Center Water Use," which analyzes how U.S. states are attempting to manage the water consumption of AI-driven data centers. The report identifies four primary regulatory strategies: reporting, conservation, incentives, and prior appropriation requirements. It notes that U.S. data center water use tripled between 2014 and 2023 to 17.4 billion gallons and is projected to reach 32.8 billion gallons by 2028.

Due to a lack of federal regulation and the failure of state-level legislation, local municipalities in Colorado have taken unilateral action. Longmont banned hyperscale data centers, while Broomfield passed an 18-month moratorium on new facilities. Boulder County also enacted a six-month moratorium on applications to evaluate potential code changes. These local shifts follow three consecutive years of failed state-level bills in Colorado that attempted to combine tax breaks with environmental guardrails.