Major AI data center operators (Nvidia, Microsoft, Amazon Web Services, Meta) are adopting closed-loop or air-cooling technologies that reduce direct water usage but increase electricity demand, thereby transferring the water burden to thermoelectric power plants. The Lawrence Berkeley National Laboratory has estimated that indirect water consumption through electricity generation far exceeds direct data center consumption. This shift could trigger regulatory discussions in water-stressed regions like Texas, where market pricing now anticipates a 20% probability of a moratorium by December 2027, up from 16% the previous day.
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