Residents of Colón in the central Mexican state of Querétaro are grappling with severe water shortages, a situation exacerbated by the burgeoning data centre industry in the region. While local authorities, including the Comisión Nacional del Agua (Conagua), indicated that 17 out of 18 municipalities have not received sufficient rainfall, the area has also become a focal point for data centres, which demand significant water resources.
The rapid expansion of data centres in Querétaro, highlighted by the Mexican Data Centre Association, features 14 facilities currently operating, with an additional 19 permits granted. This growth raises concerns as many families, like that of 38-year-old factory worker Sandra García, face rationed water supplies. García often resorts to fetching water from her landlord’s home to meet her family’s needs, a grim reality for many in her community.
Water Consumption and Data Centre Expansion
Data centres have become vital infrastructures for cloud services, requiring vast amounts of energy and water. The emergence of generative artificial intelligence has further intensified this demand as new facilities are constructed to support increasingly complex computing needs. These data centres, often located in resource-rich but under-regulated areas, have drawn criticism for prioritizing industrial growth over community welfare.
According to an investigation led by Agência Pública and the Latin American Centre for Investigative Reporting (CLIP), the promises made by tech companies regarding job creation and economic benefits remain largely unfulfilled. The coalition of 17 newsrooms across 15 countries utilized freedom of information laws and community reporting to evaluate the impact of this industrial boom in countries such as Brazil, Chile, and Mexico. Their findings revealed that many claims about job creation and renewable energy usage are misleading, as companies shift towards new fossil fuel facilities to meet their energy needs.
The cooling of servers, a vital aspect of data centre operations, significantly contributes to water consumption. As technology advances, servers now require more cooling, creating a greater demand for water. Sharlene Leurig, a managing member of water consulting firm Fluid Advisors, noted that “water is often the last consideration when making siting decisions for data centres because it’s cheap compared to the cost of real estate and power.”
Regulatory Challenges and Environmental Risks
The situation in Querétaro is further complicated by governmental strategies that prioritize attracting data centres despite ongoing drought conditions. Reports from Conagua recommended against granting new water-use permits, yet this has not deterred state and federal authorities from issuing permits to data centre companies. The push for these facilities is often framed as a necessary step towards economic growth, with claims that they will provide a pathway to technological advancement.
In a notable partnership, Microsoft collaborated with the United Nations agency UN-Habitat to propose an investment of 82 million Mexican pesos (approximately AUD $6.7 million) to boost the local economy. However, local authorities have expressed skepticism regarding the absence of infrastructure investments aimed directly at addressing the water crisis. In early 2024, Microsoft opened a new data centre region in Querétaro, raising questions about its long-term impact on local water resources.
The investigation also reached out to other major players like Amazon and Google to discuss their water usage practices. Amazon claimed its data centre design would minimize water use for cooling, aiming to achieve a water-positive status by 2030. Google, meanwhile, faced public protests in Chile over its data centre plans, indicating growing resistance to the unchecked expansion of these facilities.
As the demand for data centres continues to grow, the environmental implications cannot be overlooked. Areas already facing water scarcity are now under additional pressure as these facilities expand. The findings from this investigation underscore the urgent need for transparent regulatory frameworks that prioritize community needs alongside industrial growth, particularly in regions vulnerable to climate change.
The data centre industry, driven by some of the world’s largest technology companies, must reconcile its growth with sustainable practices. Failure to do so risks exacerbating water shortages and undermining the very communities that these companies claim to support.
