Ceres has published an analysis of water demand from electricity generation serving data centers in Virginia, Texas, California, Illinois, Georgia, Ohio and Arizona, which together host about half of all US data centers. Data centers in these states depend on about 3.4 trillion gallons of freshwater annually for electricity, while water used in power generation could account for 72% of total US data center water consumption by 2030. About 78% of electricity in the seven states came from power plants that use water to operate. Of the electricity generated using water, 66% came from areas facing medium-high to extremely high water stress. Ceres found that power producers and data center operators generally do not fully account for these indirect water risks, which could expose facilities to operational constraints if drought or water shortages disrupt electricity supplies. Ceres recommends standardized reporting of direct water use and water embedded in purchased electricity. It also calls for water risk to be incorporated into power procurement, data center siting, permitting and infrastructure planning, alongside incentives for lower-water technologies, conservation and less water-intensive renewable generation.