US data centers consumed an estimated 17 billion gallons of water in 2023, roughly three times the estimated total in 2014, according to a Congressional Research Service report published by the Library of Congress. The estimate includes water used directly for cooling and indirectly to generate the electricity powering facilities. More than 80% of the total water footprint came from electricity generation, while direct consumption accounted for a relatively small share of overall US water use. The federal government does not systematically track data-center water consumption, so the figure is an estimate assembled from incomplete state and local data rather than a facility-by-facility national accounting. Cooling choices shift demand between water and electricity. Evaporative systems generally use less energy but consume substantial water, while air-cooled systems reduce on-site water use while generally requiring more power. Municipal drinking-water systems supplied 97% of water used by US data centers in the CRS estimate, creating local competition for constrained supplies. The report says AI infrastructure is increasing electricity demand through denser specialized hardware, and consumption may have risen since its data ended in 2023. US water reporting remains fragmented because states and local utilities set requirements, and some municipal service agreements limit disclosure. Members of Congress have introduced bills on reporting and water reuse, though most remain at the introduction stage. European Union rules require data-center operators to report annual freshwater consumption.

Nvidia is scaling back its potential $250 billion guarantee for OpenAI's data center financing. This reduction reflects a shift in Nvidia's commitment to supporting OpenAI's infrastructure needs.

OpenAI expressed its commitment to responsible AI infrastructure development in Texas in a letter to Governor Greg Abbott. The organization aims to collaborate with state and local leaders, utilities, and communities to ensure that AI infrastructure provides meaningful benefits to Texans.

Amazon has begun construction on a massive AI data center in Gilroy, California, using a 45-year-old legal provision to bypass community voting. Local residents were not given an opportunity to comment on the project before its initiation.

Oracle has laid off 21,000 employees amid increasing financial pressures in the competitive AI landscape. Major tech companies, including Amazon, Microsoft, Alphabet, and Meta, are projected to invest around $600 billion in AI infrastructure by 2026.

The U.S. is experiencing a significant increase in data center construction, with over 3,000 existing data centers and an additional 1,500 in development. A Pew Research Center analysis indicates that 70% of Americans oppose AI data centers in their communities due to concerns about higher utility bills, pollution, and noise.

New York has enacted a moratorium on the construction of new data centers, making it the first state to implement such a measure. The moratorium aims to address concerns regarding energy consumption and environmental impact associated with data centers.

Neoclouds are experiencing significant hyperscaler demand as companies accelerate AI infrastructure scaling, leading to substantial revenue and backlog growth. CoreWeave and Nebius provide access to the latest Nvidia GPUs while optimizing compute utilization, despite concerns about hyperscalers offloading their capital expenditures.

America has sufficient electricity to power its data centers, but the challenge lies in delivering it to the necessary locations. A major project, Stargate, is being developed in Abilene, Texas, as part of a larger initiative by OpenAI and Softbank.

Microsoft, Google, and Amazon are projected to spend approximately $1 trillion on AI infrastructure over two years. Data centers operated by these companies are consuming significantly more water than reported, with consumption expected to increase rapidly in the future.