How smart policies can balance economic growth, resource conservation, and community well-being.

Balancing growth, resource conservation and community well-being

As digital services become foundational to nearly every aspect of American life, the infrastructure that supports this digital ecosystem grows increasingly critical. At the core of this infrastructure are data centers: highly specialized facilities that store, process, and manage the massive volumes of data that drive today’s economy and society.

The United States currently leads the world in data center capacity, with more than 5,400 facilities nationwide,

...while the market is projected to nearly triple over the next decade. Data center development brings skilled jobs, expands the tax base, and spurs technological advancement.

Managing the demand for energy and water

As the U.S. data center industry continues to grow at warp speed, its expanding footprint is placing unprecedented demands on two of the nation’s most precious resources: electricity and water. These data centers are energy- and water-intensive by design, largely due to the critical need for uninterrupted cooling.

Water and energy-intensive data centers are competing with homes, farms, and small businesses for limited resources, especially in areas experiencing water stress or grid constraints.

Data center cooling systems demonstrate the interdependent relationship between energy and water consumption, known as the water-energy nexus. This dynamic underscores the need to evaluate Water Usage Effectiveness (WUE) and Power Usage Effectiveness (PUE) together, taking a balanced approach that ensures improvements in one area do not create new burdens elsewhere.

Smarter cooling and responsible growth

As data centers become more powerful and chip density increases, the efficiency and sustainability of their cooling systems become critical. To remain competitive and future-ready, data centers must transition to smarter, more resource-efficient cooling technologies that positively move the needle on their WUE and PUE.

Beyond cooling technology itself, facilities can improve efficiency through recycled or non-potable water, heat capture and reuse, and smart pumping systems that respond dynamically to changing cooling loads.

Download the full insights

This paper outlines emerging trends, identifies key challenges, and offers actionable policy insights to ensure that data centers contribute to long-term economic growth, environmental responsibility, and community well-being.