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Water-Draining Data Centers Spark Outrage Across Latin America Amid Drought Crisis

Water-Draining Data Centers Spark Outrage Across Latin America Amid Drought Crisis
  • Nov 16, 2025
  • Theodore Galbraith
  • 0 Comments

When Google revealed in 2023 that its Santiago data center used 397 million liters of drinking water in a single year—enough to supply 80,000 people—it didn’t just raise eyebrows. It ignited a firestorm. Across Latin America, communities are fighting back against tech giants building massive data centers in regions already drowning in drought. The irony? These facilities, touted as engines of digital progress, are consuming water like it’s infinite while schools in nearby towns ration showers and farmers watch crops wither.

The Water Crisis Behind the Servers

In Chile, the backlash started in 2022 when court documents exposed Google’s Cerrillos facility’s thirst: 7 billion liters annually. The country’s environmental court stepped in, forcing Google to scrap water-based cooling in favor of air-cooling—even though the facility tripled in size. The catch? Air-cooling uses less water but demands far more electricity. And that’s where the real tradeoff kicks in.

Meanwhile, in Uruguay, Google’s proposed data center would suck up 7.6 million liters of water per day—equal to the daily needs of 55,000 people. Protests erupted in Montevideo and rural communities alike. Locals aren’t just angry; they’re scared. One farmer in Canelones told reporters, "We’re being asked to sacrifice our future so someone else can stream a movie faster."

Querétaro: Mexico’s Flashpoint

But nothing compares to what’s happening in Querétaro, Mexico. Here, Microsoft secured rights to 25 million liters of water annually from an aquifer already running a 60-million-liter deficit. A real estate developer tied to the project holds permits for nearly 600 million liters per year. One facility opened in 2024. Another is under construction. And locals? They’re noticing their taps run slower every month.

Then came the bombshell: On September 25, 2024, CloudHQ announced a $4.8 billion hyperscale campus in Querétaro—Mexico’s largest ever—built almost entirely for AI computing. It’s not just one center. Querétaro plans 32 new data centers. The Mexican Institute for Competitiveness warns the nation faces a 48,000-megawatt-hour electricity shortfall by 2030—more than half of Mexico’s entire 2023 output.

The Energy-Water Tightrope

Here’s the thing: data centers aren’t just thirsty. They’re power-hungry. The International Energy Agency (IEA) forecasts global data center electricity use will double from 460 TWh in 2022 to between 650 and 1,050 TWh by 2026. A single 15-megawatt facility? It needs 1.36 million liters of water daily. And AI? That’s the accelerator. Callaway Climate Insights warns AI demand could consume 5% of Latin America’s power by 2035—enough to cripple grids already stretched thin.

Amazon’s three existing data centers in Spain’s Aragon region are licensed for 755,720 cubic meters of water annually—enough to irrigate 233 hectares of corn. In December 2024, Amazon requested a 48% permit increase, blaming climate change for higher temperatures and more heatwaves. But critics point out: if heatwaves are worsening, why build more heat-generating machines in the same place?

The False Promise of "Water-Positive"

The False Promise of "Water-Positive"

Amazon claims its Querétaro data center will use "a design that will not use water for cooling" and aims to be "water-positive by 2030." Microsoft, when asked for specifics on its Querétaro water use, offered only a generic fact sheet. But experts say air-cooling doesn’t solve the problem—it just shifts it.

"Switching from water to air cooling increases electricity consumption by 20-40%," said Dr. Elena Ruiz, an energy systems analyst at the University of Chile. "That means more fossil fuels burned, more emissions, and more strain on grids that can’t even keep streetlights on in some towns."

McKinsey predicts $5.2 trillion will be invested in global data centers by 2030. Gartner estimates $475 billion will be spent in 2025 alone—up 42% from 2024. Most of it will go to AI. But who benefits? The servers are mostly owned by U.S. and European firms. The water and electricity? Taken from Latin American communities.

Digital Extractivism

"This isn’t infrastructure development," said Dr. Luis Recessary in a 2025 paper. "It’s digital extractivism. We’re exporting our natural resources to power the digital economy of the Global North."

Residents in Querétaro report water pressure dropping. Pipes leak. Wells run dry. Meanwhile, data center campuses are built with pristine landscaping and filtered water fountains for employees. The disconnect isn’t just physical—it’s moral.

The Institute of the Americas notes the debate now centers on land use, water consumption, and emissions. EthicalGeo.org highlights a France 24 report: one data center can use 500 million liters of drinking water annually. That’s more than the annual usage of 15,000 people in rural Colombia.

What’s Next?

What’s Next?

Chile’s court ruling may be a model—but it’s reactive, not preventive. Mexico’s federal environmental agency has yet to establish water-use caps for data centers. Brazil and Colombia are quietly drafting regulations, but without public oversight. Meanwhile, Google, Microsoft, and Amazon continue to expand, citing "economic growth" and "job creation." But in Querétaro, those 120 permanent jobs Google created? They’re not enough to offset the loss of clean water for 200,000 people.

Without binding limits on water and energy use, Latin America risks trading its future for faster cloud storage. And when the droughts get worse—and they will—the servers won’t shut down. But the taps might.

Frequently Asked Questions

How much water does a typical data center use compared to a city?

A single 15-megawatt data center consumes about 1.36 million liters of water daily—equivalent to the daily needs of 10,000–15,000 people. Google’s Santiago facility alone used 397 million liters in 2023, enough for 80,000 people annually. In water-stressed regions like Querétaro, this dwarfs municipal allocations for schools and hospitals.

Why are tech companies building data centers in drought-prone areas?

Dry climates reduce dust and corrosion risks, lowering maintenance costs. But this convenience ignores local realities. Querétaro, Chile’s Atacama Desert, and parts of Colombia are among the world’s most water-stressed regions. Companies prioritize cooling efficiency and land availability over sustainability, often bypassing local environmental scrutiny.

Do air-cooled data centers really solve the water problem?

Not really. While air-cooling cuts water use by up to 90%, it increases electricity demand by 20–40%. That means more fossil fuel consumption and greater strain on already overloaded grids. In Latin America, where renewable energy infrastructure is underdeveloped, this tradeoff worsens emissions and delays decarbonization.

What’s the projected impact of AI on Latin America’s energy grid?

Callaway Climate Insights warns AI could consume 5% of Latin America’s total electricity by 2035—enough to overload national grids. Mexico’s projected deficit of 48,000 megawatt-hours by 2030 exceeds half its 2023 output. With data centers already using 2% of global power, and AI demand surging, the region risks blackouts and delayed renewable transitions.

Are there any legal protections for communities fighting these projects?

In Chile, environmental courts have intervened, forcing Google to change cooling methods. But in Mexico and Colombia, local governments often lack the technical capacity to challenge corporate permits. Many communities rely on lawsuits or protests, with little legal backing. Without binding water-use quotas or community consent laws, these projects proceed with minimal oversight.

What can individuals do to push back?

Support local environmental NGOs, demand transparency from tech companies, and pressure elected officials to cap data center water and energy use. Consumer choices matter too: reducing unnecessary cloud storage, streaming in lower quality, and choosing providers with verified sustainability practices can collectively reduce demand. Change starts with awareness—and pressure.

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