DATA CENTER WATER AND ELECTRICITY CONSUMPTION IN
Fueled by the expansion of artificial intelligence (AI) and cloud computing, data centers have rapidly proliferated across Nevada. As a result, Nevada is now recognized as one of the fastest-growing data center markets in the United States. With a current operating capacity of 713 MW and with more than 5,900 MW of planned capacity, data centers are projected to consume considerable amounts of both energy and water resources.
Published:
January 2026
Report Authors:
Erik M. Henzl & Sean A. McKenna, PhD
Prepared By:
Division of Hydrologic Sciences, DRI
This report examines the 12 data center projects outlined in NV Energy’s 2024 Integrated Resource Plan, which drive load growth of 25,590 GWh by 2033. Using projected load growth and industry water usage effectiveness (WUE) rates, the report models data center water demand for both cooling and electricity generation under three efficiency scenarios. Following the eight-year buildout period to 2033, approximately 9,647 AFY may be needed for data center cooling while an additional 12,448 AFY may be consumed for electricity generation. There are pathways toward greater resource and capital efficiencies, but various uncertainties remain. Ultimately, the energy and water demands of data center expansion are considerable. While this presents the opportunity of positioning Nevada as a central player in the increasingly digital world, there are challenges that must be resolved to ensure that other stakeholders and priorities are balanced with the increasing demands of rapid data center expansion.
DATA CENTER WATER & POWER DEMAND IN PERSPECTIVE
The water needed annually for the cooling of 12 data centers, under the medium efficiency scenario (about 9,650 acre-feet per year) is equivalent to the water needed annually for:
- Almost 31 golf courses
- 11 alfalfa farms
- The drinking water of more than 24,117,000 U.S. adults
- More than 27,600 U.S. households
NV Energy estimates the energy demand for the 12 data center projects will be 5,900 megawatts. This is about 2.8 times the capacity of Hoover Dam (2,080 megawatts).
NEVADA’S EVOLUTION INTO DATA CENTER HOTSPOT
12 data center projects fuel load growth of 25,590 gigawatt-hours by 2033, driving the following resource demands and costs.
With currently more than 40 data centers and with additional projects underway, Northern Nevada is one of the top three fastest-growing data center markets in the U.S. The state’s unique value proposition, including abundant land, cost-competitive energy, business-friendly tax policies, and proximity to key markets, has attracted considerable data center investment, but this growth is complicated by challenges like water and grid stress, supply chain disruptions, a shortage of skilled trade labor, and rising costs for projects.
- The 25,590 gigawatt-hours in load growth is about 56% of Nevada’s 2024 net generation of 45,530 gigawatt- hours
- 25,590 gigawatt-hours per year and >$2.8 billion in annual electricity costs following the build-out to 2033
Data center water demand is driven by cooling. Water usage effectiveness (WUE), measured in liters per kilowatt-hour (L/kWh), shows how efficiently data centers use water:
MEDIUM WUE: 0.465 L/kWh
Combining WUE and data center load growth, we estimate water demand of about 9,650 acre-feet per year (AFY).
Data center water demand is also driven by electricity generation. At a rate of 0.6 L/kWh, these projects may consume 12,448 AFY for electricity generation.
Moving forward, there is an opportunity in using treated wastewater to help alleviate this demand. For example, a 4,000 AFY capacity pipeline will help in meeting demands at the Tahoe-Reno Industrial Center.
Table 1. Data Center Demand Capacity (MW) in Nevada Compared to Established Markets.
This table shows data center capacity in megawatts by development stage and location. Locations include Washoe County, Storey County, and Clark County in Nevada, as well as Loudoun County, Virginia and Maricopa County, Arizona.
| Washoe, NV | Storey, NV | Clark, NV | Nevada Total | Loudoun, VA | Maricopa, AZ | |
|---|---|---|---|---|---|---|
| Operating | 216.5 | 70 | 426.33 | 712.83 | 5,333.67 | 2,159.6 |
| In Construction | 20 | 475 | 0 | 495 | 596 | 1,276.5 |
| Planned | 5 | 5,495 | 414 | 5,914 | 6,349.4 | 5,966 |
| Total | 241.5 | 6,040 | 840.33 | 7,121.83 | 12,279.07 | 9,402.1 |
Table 9. Water, Electricity, and Costs for Data Center Expansion
Table 9 compares electricity demand, water use, and associated costs between a baseline state scenario and the Sierra Nevada Power expansion scenario. Values include total expansion impacts and annual impacts. Units include gigawatt-hours (GWh), acre-feet of water (ac-ft), and millions of dollars.
| Scenario | State | Sierra | Nevada Power | |
|---|---|---|---|---|
| Expansion | Electricity need (GWh) | 115,155 | 110,849 | 4,307 |
| Electricity cost ($ mil) | $11,643.41 | $11,207.97 | $435.43 | |
| Water for generation (ac-ft) | 56,015 | 53,920 | 2,095 | |
| Water cost ($ mil) | $5.66 | $5.45 | $0.212 | |
| Low (Cooling, ac-ft) | 22,593 | 21,748 | 845 | |
| Low (Cost, $ mil) | $2.28 | $2.20 | $0.085 | |
| Medium (Cooling, ac-ft) | 43,411 | 41,788 | 1,623 | |
| Medium (Cost, $ mil) | $4.39 | $4.23 | $0.164 | |
| High (Cooling, ac-ft) | 168,044 | 161,759 | 6,284 | |
| High (Cost, $ mil) | $16.99 | $16.36 | $0.635 | |
| Annual | Electricity need (GWh) | 25,590 | 24,633 | 957 |
| Electricity cost ($ mil) | $2,806.10 | $2,701.16 | $104.94 | |
| Water for generation (ac-ft) | 12,448 | 11,982 | 466 | |
| Water cost ($ mil) | $1.36 | $1.31 | $0.051 | |
| Low (Cooling, ac-ft) | 5,021 | 4,833 | 188 | |
| Low (Cost, $ mil) | $0.551 | $0.53 | $0.021 | |
| Medium (Cooling, ac-ft) | 9,647 | 9,286 | 361 | |
| Medium (Cost, $ mil) | $1.06 | $1.02 | $0.040 | |
| High (Cooling, ac-ft) | 37,343 | 35,947 | 1,397 | |
| High (Cost, $ mil) | $4.09 | $3.94 | $0.153 |