Rutgers Computer and Technology Law Journal Published “Powering Progress or Peril? The Hidden Environmental Costs of Data Centers and AI”

Data centers are rapidly developing across the country to meet demands for artificial intelligence, data storage, and cloud computing. But their environmental impact, especially regarding water use, is largely obscured from public view.  

That’s the subject of the Center for Water Policy’s recent article. Water Policy Specialist Peyton McCauley, Interim Assistant Director Cora Sutherland, and Director Melissa Scanlan investigate the environmental footprint of data centers. Some data centers use as much as one-quarter of local water supplies, which has raised alarm.  However, the industry’s collective impact isn’t transparent; incomplete government records, inconsistent voluntary reporting, and limited reporting requirements produce fragmented data.     

Ultimately, this published academic research sheds light on the hidden water use of our increasing reliance on AI-data centers and highlights the need for greater sustainability and transparency in the industry. 

 
Quick Facts: What you need to know 

• Incomplete Environmental Data. While incomplete, early evidence suggests data centers are undermining decarbonization and water conservation progress.  
• Massive Amounts of Water. Lawrence Berkeley Lab estimated that in 2023 U.S. data centers consumed 228 billion gallons of water.  
• Lack of Transparency. In addition to obscured data showing environmental impacts, there’s very little public debate or analysis before data centers are announced.  This undermines local control and the ability to understand and make informed decisions about hosting data centers.  

 
Read the research:  

Peyton McCauley, Cora Sutherland & Melissa K. Scanlan, Spring 2025 Symposium Special Edition, Powering Progress or Peril? The Hidden Environmental Costs of Data Centers and AI, 51 Rutgers Comput. & Tech. L. J. SE1 (2025). [

 
Check out CWP’s previous work and involvement on data centers: 

Surging numbers of data centers around the Great Lakes could lead to water shortages | Chicago Tribune, featuring quotes from CWP Director Melissa Scanlan (September 2025) 

Data Centers Consume Massive Amounts of Water — Companies Rarely Tell the Public Exactly How Much | The Conversation (August 2025)  

Inside ESG Reporting: Thirsty Data Centers Reveal Limits to Transparency  | American Bar Association (April 2025)