Commerce Secretary Howard Lutnick dismissed concerns about artificial-intelligence data centers’ water consumption Wednesday, saying "data centers don’t use water" and calling the criticism "propaganda by our adversaries" as communities increasingly push back against large AI infrastructure projects.
Lutnick Dismisses Data Center Water Concerns
"One of my favorite things is when people talk about data centers using water. The No. 1 product in America that uses water is cattle," Lutnick told CNBC in an interview. "I mean, data centers don’t use water. This is propaganda by our adversaries to try to slow us down."
Federal research complicates that sweeping claim. The Lawrence Berkeley National Laboratory estimated U.S. data centers directly consumed about 66 billion liters of water in 2023, up from 21.2 billion liters in 2014. Hyperscale facilities alone could consume 60 billion to 124 billion liters annually by 2028.
That said, water use varies by facility. Data Center Coalition, the membership association for the data center industry, says some centers rely on air cooling while others use water or hybrid systems. It cites a Virginia study finding 83% of data centers there use as much water as, or less than, a large office building. Operators are also adopting closed-loop and waterless cooling systems.
Trump Data Center Push Faces Backlash
Lutnick’s comments arrive as President Donald Trump intensifies his defense of data centers. Trump recently urged communities to "let Data Reign" and warned opponents could become "backwards and poor," prompting sharp criticism from Alexandria Ocasio-Cortez (D-N.Y.) and Republicans including Marjorie Taylor Greene.
The administration has simultaneously acknowledged infrastructure-cost concerns. Its expanded Ratepayer Protection Pledge requires participating companies to fund new power generation and grid upgrades rather than shifting costs to households. The pledge now covers about 80% of U.S. electricity deliveries.
Congress Examines Data Center Water Costs
Congress is also examining water use. The House Energy and Commerce Committee is holding a Thursday hearing on draft legislation intended to make data-center developers, rather than local families, responsible for water infrastructure costs.
Even industry supporters acknowledge the political risk. Texas Gov. Greg Abbott (R) earlier said developers "dug their own grave" by failing to engage communities. Investor Kevin O’Leary has likewise urged operators to "be clear about water usage and emissions."
Photo courtesy: Shutterstock