Latest news with #GreatLakesCompact
Yahoo
13 hours ago
- Business
- Yahoo
Will massive water needs of data centers, farms, mines be too much for the Great Lakes?
While the Great Lakes may seem to offer an endless supply of water, the balance is actually quite delicate. Each year, only 1% percent of the water in the Great Lakes is replenished by rain, snow and groundwater. Now, a new report from the Alliance for the Great Lakes shows that this delicate balance may be at risk because of rising demand from industries that use tremendous amounts of water, like data centers, mineral mining, and agriculture, all of which put pressure on groundwater resources. Further, the increased water demand is happening just as climate change is making it more difficult to manage and plan water use, because precipitation no longer follows historical trends. That's something Milwaukeeans saw firsthand earlier this month during the 1,000-year flood event. Tax incentives from many of the eight Great Lakes states have lured industries that need water, like data centers, to the region. Further, any industry that needs access to that much water has to come, because the Great Lakes Compact ensures that large-scale, long-range diversions of water outside the basin won't happen. But, the report warns that the region is ill-prepared for the overwhelming needs on the horizon. No one has prepared, for example, for summer days when parched fields need to be irrigated and sprawling data centers need to be cooled. According to Helena Volzer, senior source water policy manager and author of the report, the eight states already have a foundation in place to work together and need to be actively preparing for emerging water risks, Volzer said. Here are six takeaways from the report. Great Lakes Compact protects water access. But that doesn't mean thirsty neighbors won't challenge it. Groundwater overuse can cause cities to sink Between 20% to 40% of the Great Lakes' water budget − the total groundwater flowing in and out of the system − starts as groundwater, and between 40% and 75% of residents of the eight states usse it as drinking water. Pumping too much water out for residential and business use can lead to aquifers not being able to replenish. This can lower water tables, leading to deeper drilling to get even more water, which in turn results in higher costs. It also risks drawing contaminants into aquifers. Unsustainable use can cause cities to sink because the ground becomes more compact. The report notes Chicago, Columbus, Indianapolis and Detroit sink more each year. Over time, this threatens drinking water supplies and infrastructure. Consumptive water use has declined, for now Some lake water never returns; it can evaporate or be used in a product that leaves. This is known as consumptive use. Consumptive water use has declined since 2015, thanks largely to increased efficiency and conservation efforts, including the shutdown of coal-fired power plants that once consumed vast amounts of water for cooling. According to the report, much of this progress could get erased due to the Trump administration's efforts to revitalize coal plants. Data centers use water, most of which isn't tracked Massive data centers, like the ones that power generative AI, can use more than 365 million gallons of water each year, about as much as 12,000 Americans in that time. Over the next five years, these data centers are expected to withdraw up to 150 billion gallons of water — the same amount used by around 4.6 million U.S. households. Many Great Lakes states lead the nation in number of data centers. Here are their numbers of July 2025, according to the report: Minnesota: 60 Wisconsin: 43 Michigan: 53 Illinois: 224 Indianapolis: 70 Ohio: 185 Pennsylvania: 88 New York: 143 The report contends that data center owners are not transparent about their water footprint, and there is no requirement to make them. According to the report, fewer than one-third track water usage. At the same time, states and local governments are offering tax breaks and incentives to attract data centers. All eight Great Lakes states have passed measures in the last 20 years to support the push for these businesses. For instance, in Port Washington, Wisconsin, officials are advancing with plans for a proposed 3.5-gigawatt, 1,900-acre data center campus that could be one of the largest in the country. More: Microsoft data center will be the state's largest electricity user. Power needs equal 300,000 homes More: Port Washington residents near proposed data center warn of climate, environmental and technology risks Mineral mining risks contaminating groundwater The demand for critical minerals, like lithium, cobalt, copper and nickel is growing due to the transition towards cleaner technologies, which use them. The Great Lakes region is known to have reserves of critical minerals. Recently, mines have been proposed near Lake Superior, an area known to contain reserves of nickel, copper and cobalt. However, such mining requires large volumes of water to separate minerals, cool machinery and control dust. It also risks contaminating surface and drinking water, even after mines close. More: Final permits aren't yet issued for Lake Superior copper mine. But opponents fear it's all but locked in. More: Water quality issues challenge what it means to 'leave no trace' in beloved Boundary Waters Dry, hot summers changing irrigation needs Due to increasingly hot and dry summers, irrigation is now being adopted in agricultural areas where it was previously uncommon, such as northwest Ohio and parts of Wisconsin, the report said. With peak demand in summer months − when data centers also require the most cooling − demands for tremendous water volumes may converge, Volzer explained. A need for transparency, regional planning Increased demand for water, regardless of who is using it, underscores the need for policy changes that prioritize transparency, regional planning and investment in groundwater mapping, Volzer said. According to the report, transparency around water usage can help stakeholders make informed decision and avoid mismanagement. Regional planning can make sure resources are managed sustainably across industries. Funding groundwater mapping will help stakeholders understand how much groundwater there is and plan for future use. Volzer emphasized the need for creative strategies, such as thinking about ways non-potable water can be reused, to ease pressure on limited supplies from the Great Lakes. How could Chicago sell Lake Michigan water to Joliet, 35 miles away? Five questions answered. After decades-long journey, Waukesha hits one-year anniversary tapping into Lake Michigan Caitlin Looby covers the Great Lakes and the environment for the Milwaukee Journal Sentinel. Reach her at clooby@ and follow her on X @caitlooby. Caitlin's work is supported by the Brico Fund, Fund for Lake Michigan, Barbara K. Frank, and individual contributions. Grants and donations help make this reporting possible. The Journal Sentinel maintains full editorial control. To learn more about our community-funded journalism initiatives, or to make a tax-deductible donation, visit Checks can be addressed to Local Media Foundation with 'JS Environment' in the memo, then mailed to: Local Media Foundation, P.O. Box 85015, Chicago, IL 60689. This article originally appeared on Milwaukee Journal Sentinel: Data centers, irrigation, mining imperil Great Lakes, report says Solve the daily Crossword
Yahoo
14 hours ago
- Business
- Yahoo
Will massive water needs of data centers, farms, mines be too much for the Great Lakes?
While the Great Lakes may seem to offer an endless supply of water, the balance is actually quite delicate. Each year, only 1% percent of the water in the Great Lakes is replenished by rain, snow and groundwater. Now, a new report from the Alliance for the Great Lakes shows that this delicate balance may be at risk because of rising demand from industries that use tremendous amounts of water, like data centers, mineral mining, and agriculture, all of which put pressure on groundwater resources. Further, the increased water demand is happening just as climate change is making it more difficult to manage and plan water use, because precipitation no longer follows historical trends. That's something Milwaukeeans saw firsthand earlier this month during the 1,000-year flood event. Tax incentives from many of the eight Great Lakes states have lured industries that need water, like data centers, to the region. Further, any industry that needs access to that much water has to come, because the Great Lakes Compact ensures that large-scale, long-range diversions of water outside the basin won't happen. But, the report warns that the region is ill-prepared for the overwhelming needs on the horizon. No one has prepared, for example, for summer days when parched fields need to be irrigated and sprawling data centers need to be cooled. According to Helena Volzer, senior source water policy manager and author of the report, the eight states already have a foundation in place to work together and need to be actively preparing for emerging water risks, Volzer said. Here are six takeaways from the report. Great Lakes Compact protects water access. But that doesn't mean thirsty neighbors won't challenge it. Groundwater overuse can cause cities to sink Between 20% to 40% of the Great Lakes' water budget − the total groundwater flowing in and out of the system − starts as groundwater, and between 40% and 75% of residents of the eight states usse it as drinking water. Pumping too much water out for residential and business use can lead to aquifers not being able to replenish. This can lower water tables, leading to deeper drilling to get even more water, which in turn results in higher costs. It also risks drawing contaminants into aquifers. Unsustainable use can cause cities to sink because the ground becomes more compact. The report notes Chicago, Columbus, Indianapolis and Detroit sink more each year. Over time, this threatens drinking water supplies and infrastructure. Consumptive water use has declined, for now Some lake water never returns; it can evaporate or be used in a product that leaves. This is known as consumptive use. Consumptive water use has declined since 2015, thanks largely to increased efficiency and conservation efforts, including the shutdown of coal-fired power plants that once consumed vast amounts of water for cooling. According to the report, much of this progress could get erased due to the Trump administration's efforts to revitalize coal plants. Data centers use water, most of which isn't tracked Massive data centers, like the ones that power generative AI, can use more than 365 million gallons of water each year, about as much as 12,000 Americans in that time. Over the next five years, these data centers are expected to withdraw up to 150 billion gallons of water — the same amount used by around 4.6 million U.S. households. Many Great Lakes states lead the nation in number of data centers. Here are their numbers of July 2025, according to the report: Minnesota: 60 Wisconsin: 43 Michigan: 53 Illinois: 224 Indianapolis: 70 Ohio: 185 Pennsylvania: 88 New York: 143 The report contends that data center owners are not transparent about their water footprint, and there is no requirement to make them. According to the report, fewer than one-third track water usage. At the same time, states and local governments are offering tax breaks and incentives to attract data centers. All eight Great Lakes states have passed measures in the last 20 years to support the push for these businesses. For instance, in Port Washington, Wisconsin, officials are advancing with plans for a proposed 3.5-gigawatt, 1,900-acre data center campus that could be one of the largest in the country. More: Microsoft data center will be the state's largest electricity user. Power needs equal 300,000 homes More: Port Washington residents near proposed data center warn of climate, environmental and technology risks Mineral mining risks contaminating groundwater The demand for critical minerals, like lithium, cobalt, copper and nickel is growing due to the transition towards cleaner technologies, which use them. The Great Lakes region is known to have reserves of critical minerals. Recently, mines have been proposed near Lake Superior, an area known to contain reserves of nickel, copper and cobalt. However, such mining requires large volumes of water to separate minerals, cool machinery and control dust. It also risks contaminating surface and drinking water, even after mines close. More: Final permits aren't yet issued for Lake Superior copper mine. But opponents fear it's all but locked in. More: Water quality issues challenge what it means to 'leave no trace' in beloved Boundary Waters Dry, hot summers changing irrigation needs Due to increasingly hot and dry summers, irrigation is now being adopted in agricultural areas where it was previously uncommon, such as northwest Ohio and parts of Wisconsin, the report said. With peak demand in summer months − when data centers also require the most cooling − demands for tremendous water volumes may converge, Volzer explained. A need for transparency, regional planning Increased demand for water, regardless of who is using it, underscores the need for policy changes that prioritize transparency, regional planning and investment in groundwater mapping, Volzer said. According to the report, transparency around water usage can help stakeholders make informed decision and avoid mismanagement. Regional planning can make sure resources are managed sustainably across industries. Funding groundwater mapping will help stakeholders understand how much groundwater there is and plan for future use. Volzer emphasized the need for creative strategies, such as thinking about ways non-potable water can be reused, to ease pressure on limited supplies from the Great Lakes. How could Chicago sell Lake Michigan water to Joliet, 35 miles away? Five questions answered. After decades-long journey, Waukesha hits one-year anniversary tapping into Lake Michigan Caitlin Looby covers the Great Lakes and the environment for the Milwaukee Journal Sentinel. Reach her at clooby@ and follow her on X @caitlooby. Caitlin's work is supported by the Brico Fund, Fund for Lake Michigan, Barbara K. Frank, and individual contributions. Grants and donations help make this reporting possible. The Journal Sentinel maintains full editorial control. To learn more about our community-funded journalism initiatives, or to make a tax-deductible donation, visit Checks can be addressed to Local Media Foundation with 'JS Environment' in the memo, then mailed to: Local Media Foundation, P.O. Box 85015, Chicago, IL 60689. This article originally appeared on Milwaukee Journal Sentinel: Data centers, irrigation, mining imperil Great Lakes, report says Solve the daily Crossword
Axios
09-05-2025
- Business
- Axios
The Midwest's data center boom comes to Indiana
The Midwest is emerging as one of the nation's fastest-growing data center hubs, with development stretching from Kansas and Iowa to the Great Lakes states of Ohio, Michigan, Indiana and Wisconsin. Why it matters: Data centers power the AI boom — but their soaring energy and water demands often go unreported and the benefits for local communities are unclear because data centers create few permanent jobs. Data centers, which are essentially warehouses for computers and servers, used 4.4% of U.S. electricity in 2023 and could consume up to 12% by 2028, according to the Department of Energy. Construction of the centers is at an all-time high, increasing 69% year-over-year from 2023 to 2024, per commercial real estate firm CBRE. State of play: Columbus, Ohio and Chicago are the region's primary data center markets, but companies are increasingly eyeing places such as Minneapolis and parts of Indiana, where land is cheaper and energy is more available. The Midwest's tax incentives are particularly appealing for companies, Jon Davis, a policy strategist for The Council of State Governments, tells Axios. Plus: Cooler Midwest temperatures and proximity to the Great Lakes reduce the need for energy-intensive cooling — an advantage over warmer southern states. Zoom in: The largest project is the Amazon data center campus coming to New Carlisle, but Microsoft, Google and Meta have also announced hyperscale data centers in Indiana. Citizens Action Coalition has tracked nearly 30 data centers that have been proposed across the state so far. Even though Indiana's data center boom is in the nascent stages, it's having an impact on energy usage. Indiana Michigan Power has estimated that the handful of data centers coming to Northern Indiana will use more electricity by 2030 than all Hoosier households. Friction point: The expansion often happens behind closed doors. Local governments frequently sign nondisclosure agreements with tech firms, limiting public knowledge of energy and water usage, says Helena Volzer of the nonprofit Alliance for the Great Lakes. The other side: Our world is growing increasingly digital, and the data needs to go somewhere. "It's businesses of all shapes and sizes as well. They're increasingly relying on digital infrastructure," Dan Diorio, senior director of state policy for the Data Center Coalition, tells Axios. As companies build to meet that surging demand, energy is a "significant cost driver" and it's in their best interests to be efficient, he says. Data centers house server farms that store our information, along with electrical equipment that gets hot, requiring 24/7 air cooling that annually uses millions of gallons of water as a refrigerant. Yes, but: Their true water consumption is unknown, since most of them rely on municipal utilities, Volzer says. The Great Lakes Compact is an agreement among Illinois, Indiana, Michigan, Minnesota, New York, Ohio, Pennsylvania and Wisconsin about managing the Great Lakes water basin. Cities report to the compact how much water they're using, but that isn't broken down into details such as how much is from data centers. Plus: Data centers also use a large amount of electricity, which requires generating water. However, water consumption is attributed to power plants rather than data centers, further obscuring their transparency. By the numbers: Hyperscale data centers, which can take up over 10,000 square feet of floor space and house over 5,000 servers, can use between 1 million and 5 million gallons of water per day when evaporative cooling — the most common method — is used, according to the Alliance for the Great Lakes. For reference, a hyperscale data center that uses 365 million gallons in a year is equivalent to what roughly 12,000 Americans use in a year, according to the Alliance. Threat level: To meet the demand on existing electricity power grids, some strained markets may have to add capacity on- or off-site.
Axios
16-04-2025
- Business
- Axios
The Midwest's data center boom is heating up
The AI boom is reshaping the Midwest, driving a wave of data center development, straining energy systems, consuming millions of gallons of water — and triggering a new debate over who benefits. Why it matters: Data centers power the AI boom — but their soaring energy and water demands often go unreported, with unclear benefits for local communities and few permanent jobs created. Data centers used 4.4% of U.S. electricity in 2023 and could consume up to 12% by 2028, per the U.S. Department of Energy. Data center construction is at an all-time high, increasing 69% year over year from 2023 to 2024, per CBRE, a commercial real estate firm. Yes, and: The Midwest is emerging as one of the nation's fastest-growing data center hubs, with development stretching from Kansas and Iowa to Great Lakes states like Ohio, Michigan, Indiana and Wisconsin. State of play: Columbus, Ohio, and Chicago remain the region's primary data center markets. But companies are increasingly eyeing secondary cities like Minneapolis, Pittsburgh, Des Moines and parts of Indiana, where land is cheaper and energy is more available, says Andy Cvengros of real estate firm JLL. Cooler Midwest temperatures and proximity to the Great Lakes reduce the need for energy-intensive cooling — an advantage over warmer, Southern states. Yes, but: The expansion often happens behind closed doors. Local governments frequently sign nondisclosure agreements with tech firms, limiting public knowledge of energy and water usage, says Helena Volzer of the nonprofit Alliance for the Great Lakes. Not even one-third of data centers track water consumption, according to a 2021 study. The other side: Our world is growing increasingly digital, and the data needs to go somewhere. U.S. households had an average of 21 digital devices in 2023, per a Deloitte survey. As companies build to meet that surging demand, energy is a "significant cost driver," it's in their best interests to be efficient, Dan Diorio, senior director of state policy for the Data Center Coalition, tells Axios. Data centers use unknown amounts of water and energy Data centers house server farms that store our information, along with electrical equipment that gets hot, requiring 24/7 air cooling that uses millions of gallons of water annually as a refrigerant. Yes, but: Volzer says their true water consumption is unknown since most rely on municipal utilities. The Great Lakes Compact is an agreement among Illinois, Indiana, Michigan, Minnesota, New York, Ohio, Pennsylvania and Wisconsin about managing the Great Lakes water basin. Cities report to the compact how much water they're using, but that isn't broken down into details such as how much is from data centers. By the numbers: Hyperscale data centers, considered some of the largest facilities, use 365 million gallons each in a year — equivalent to what roughly 12,000 Americans use in a year, according to the Alliance for the Great Lakes. Municipalities weigh economic benefits Beyond environmental costs, there's growing scrutiny over what communities get in return. Why it matters: If leaders prioritize jobs, there are better industries for which to compete, says Peter Orazem, an economics professor at Iowa State University. But if they're counting on future property tax revenue, he says, the investment may be worth it. The big picture: A 2023 state-commissioned report in Virginia, the country's data center hub, found that while the initial construction phase delivers economic benefits, those drop off sharply once the centers are built. Building a 250,000-square-foot data center employs up to 1,500 local employees for 12-18 months. But that declines to 50 full-time workers, half of them contracted. State of play: Most Midwest states offer data-center-specific tax credits, including a mix of sales, personal property and use-tax exemptions. Michigan just added a sales tax exemption this year for data center equipment. Indiana and Illinois lawmakers are considering new transparency rules on data centers' energy usage. The other side: A recent Data Center Coalition report touts the economic benefits of data centers beyond the jobs inside them. Those include bolstering supply-chain businesses, employees' spending in the community, and companies' state and local tax contributions — which come without straining public services like schools. What's next With rising demand and growing pushback, a regulatory reckoning may be coming. With lawmakers in Illinois and Indiana eyeing new transparency rules, advocates are watching to see whether other Midwest states follow suit. Between the lines: It can be difficult to accurately predict future energy demand because, as time passes, systems are becoming more efficient, a 2020 study found.
