How much water do data centers use in North Carolina? Drought raises new concerns

As Raleigh prepares to implement water restrictions on Monday amid the ongoing drought, attention is turning to how much water large data centers could use and how that demand is managed during dry periods.

2026-04-17

The city will activate Stage 1 water-use restrictions to protect its supply, limiting irrigation and requiring conservation measures. The decision comes as drought conditions persist across much of North Carolina and water levels remain far below normal for this time of year.

Raleigh Water Assistant Director Ed Buchan said the move is precautionary, but it highlights how quickly supply can come under pressure.

At the same time, new demand is emerging.

Industry estimates show a single large data center can use up to a billion gallons of water a year, or as much as 2.7 million gallons a day during peak summer heat. That's similar to the daily use of some entire towns and enough water to fill hundreds of swimming pools.

Much of that water is used for cooling, and unlike most municipal systems, a portion is lost through evaporation rather than returned to the river basin.

That distinction is forcing utilities to rethink long-term planning.

“When we were developing this plan, data centers were not part of that equation,” Buchan said.

Traditional water use is largely cyclical, with most treated water returning to the system. Cooling systems at large data centers can break that cycle.

“Water is going into the facility and not coming out, not going back to the sewer, not going back to the river. It’s just gone. Vaporized into the air,” Buchan said.

That loss, combined with rapid growth, could change how existing supplies are allocated.

“Is that water used for growth in the traditional sense, for businesses and homes, or is it used for data centers? That’s a real question now,” Buchan said.

Drought adds pressure

Severe drought now covers all of North Carolina, with parts of the state in extreme drought.

New data released Thursday shows the seasonal drought is expected to persist well into the summer, at least through the end of July.

More than 97% of the Southeast is now in some level of drought, the largest extent recorded since the U.S. Drought Monitor began tracking conditions in 2000.

In Raleigh, Falls Lake, a primary drinking water source, is below normal for this time of year, when it is typically full.

Higher temperatures and a lack of rainfall are increasing demand at the same time supply is tightening, conditions that can amplify the impact of large water users.

Local decisions, limited data

In fast-growing parts of the state, those concerns are already shaping policy.

In Chatham County, commissioners approved a one-year moratorium on new data centers, driven in part by concerns about water use.

"I think that is probably the single greatest concern, and that is that probably what was weighed by the minds of our commissioners in deciding to pass the moratorium more than anything else," Chatham Commissioner Karen Howard said. "We know that our climate future is at risk. We are in the process of creating a climate plan and the use of water is a significant concern for us."

The pace of development can outstrip the ability to fully study its effects, especially in smaller systems with fewer resources.

“These rural systems don’t have the resources to do engineering studies so they don’t fully understand the impact before approving these projects,” Heather Somers, director of the North Carolina Rural Water Association, said.

“If we don’t get some reins in place, we’re going to be in trouble for sure,” Somers said.

Oversight questions

Across the country, lawmakers are beginning to take a closer look at data center water use, with 36 states proposing legislation this year aimed at improving transparency and oversight. 

In North Carolina, there are no statewide proposals specifically requiring data centers to disclose water use or setting limits during drought conditions.

That leaves much of the decision-making to local governments and utilities, often through negotiated agreements that can vary from project to project.

Developers say demand can vary

Developers say water use is often estimated early and can change as projects take shape.

Michael Natelli, a developer behind a proposed data center near Apex that is now on pause after community pushback, said early projections are intentionally conservative.

“The peak need of 1 million gallons per day is a conservative estimate,” Natelli said. “It is fair to assume that the average daily use will be around 30-45% of the peak use.”

Natelli said some water would be lost through evaporation, while final demand depends on design and future partners. He said projects should be located where infrastructure can support them.

“That doesn’t mean they should go anywhere,” Natelli said.

Balancing growth and supply

Utilities say North Carolina’s water systems remain stable in the near term.

But as population growth, industrial demand and climate pressures converge, officials say long-term planning will become more critical.

For now, the question is not just how much water data centers use, but how that demand is managed as drought puts added strain on the system.