Governing AI Data Center Growth in Water-Stressed Regions

AI data centers are becoming critical infrastructure, but their growth is also a water-governance issue. Cooling systems can raise local freshwater demand directly, while electricity procurement adds indirect water use across power systems. In water-stressed regions, siting decisions affect not only land and grid capacity, but also basin resilience, transparency, and justice.

This chapter develops a governance framework for AI data center growth that combines hydrological screening, public disclosure, and water-justice safeguards. It argues that responsible expansion requires place-based regulation that evaluates cumulative withdrawals, drought sensitivity, emergency curtailment, community participation, and enforceable reporting. Drawing on research on data center sustainability, water disclosure, planning, and environmental justice, the chapter proposes policy instruments for governments, utilities, and operators seeking water-resilient digital infrastructure.