Commerce Secretary Howard Lutnick on Wednesday dismissed concerns about data centers' water consumption, asserting that the facilities "don't use water" — a claim that contradicts federal data and industry acknowledgments. In a CNBC interview, Lutnick said, "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." He added, "I mean, data centers don't use water. This is propaganda by our adversaries to try to slow us down."
Federal estimates tell a different story. According to a 2024 report from the Lawrence Berkeley National Lab, data centers used an estimated 66 billion liters of water in 2023, with hyperscale facilities accounting for the bulk. The report projects that hyperscalers alone could consume between 60 billion and 124 billion liters annually by 2028. To put that in context, total U.S. water use in 2015 was about 322 billion gallons per day — or more than 400 trillion liters per year — with power plants and irrigation leading consumption, according to government data.
Lutnick's comments come as the Trump administration has repeatedly defended data centers amid growing bipartisan backlash. President Trump on Monday urged the nation to "let Data reign" and accused opponents of wanting their communities to be "backwards and poor." In a Truth Social post, he warned that if the "Golden Goose" is killed, "China could not be happier with this anti Data Center movement."
The administration's stance has created friction with local communities and even within the GOP, as Trump has granted Republicans some leeway on the issue ahead of midterm elections. Public concerns extend beyond water to include higher electricity bills, noise, and pollution, as noted in recent reporting on the trust deficit facing data centers.
Even industry trade groups concede that data centers consume some water, though they argue the amount is modest compared to agriculture or energy production. They also highlight innovations like closed-loop cooling systems that can drastically reduce water needs. The debate is not new: NASA's chief has even floated orbital data centers as a way to sidestep local opposition.
Lutnick's remarks drew sharp reactions from lawmakers and environmental advocates, who point to the impending House Energy and Commerce Committee hearing on Thursday. The hearing will examine draft legislation aimed at addressing data centers' water use, a sign that the issue is gaining legislative traction.
The disconnect between administration rhetoric and empirical data underscores the tension between promoting AI infrastructure and managing its environmental footprint. As data center construction accelerates, communities and policymakers are demanding greater accountability, making water usage a key battleground in the AI policy debate.
