Howard Lutnick Claims AI Data Centers Don't Use Water Despite 66 Billion Liters Used in 2023

Lutnick claims that data centers, known for water consumption, 'don't use water'

Commerce Secretary Howard Lutnick claimed Wednesday that data centers "don't use water" despite the facilities' significant water use raising concerns for communities that may host them. In an interview with CNBC, 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." "I mean, data centers don't use water," he added. "This is propaganda by our adversaries to try to slow us down." Data centers used an estimated 66 billion liters of water in 2023, most of which went to hyperscale data centers, according to a 2024 report from the Lawrence Berkeley National Lab. Hyperscalers alone are expected to consume between 60 billion and 124 billion liters in 2028, the report projected. In 2015, the total U.S. water use was estimated to be about 322 billion gallons per day, or more than 400 trillion liters per year. At that time, the government estimated that power plants were the nation's largest water users, followed by irrigation. AI companies have argued that concerns over data center water usage are overblown, pointing to other industries that use more water. However, even industry trade groups acknowledge that data centers use some quantity of water. They have also sought to underscore new technologies, such as closed-loop cooling systems, that can limit the amount of water new data centers require. Lutnick's comments come as the Trump administration has repeatedly defended data centers despite growing bipartisan backlash against the AI infrastructure. President Trump on Monday called on the U.S. to "let Data reign" and accused data center opponents of wanting their communities to be "backwards and poor." "The good news is that there are plenty of other places that want them. If we kill the Golden Goose, you will only have yourselves to blame. China could not be happier with this anti Data Center movement," Trump wrote on Truth Social. Water use is just one factor behind the public pushback to the server warehouses. Americans have also raised concerns about high electric bills, noise and pollution. The House Energy and Commerce is expected to hold a hearing Thursday on draft legislation to address data centers' water use.

Howard Lutnick Just Contradicted Howard Lutnick On AI Data Centers

The commerce secretary contradicted himself on the amount of water the centers use -- and somebody brought receipts. Commerce Secretary Howard Lutnick made a bold statement about artificial intelligence data centers on Wednesday that is not only contradicted by actual data but also by Howard Lutnick himself. During an interview on CNBC, Lutnick discussed the ongoing pushback to the data centers, and insisted that, contrary to popular belief, they don't actually use massive amounts of water. He also claimed any suggestions that the data centers require lots and lots of water are just "propaganda by our adversaries to try to slow us down." Lutnick then insisted that data centers are "world-class productions" that could "produce huge economics," before insisting that communities that recruit data centers will just be better off. But Lutnick's insistence that data centers don't use water isn't supported by the evidence. The Florida Water & Pollution Control Operators Association said a medium-sized data center might need 100 million gallons a year for cooling, while a large one might use 1 to 5 million gallons of water per day during peak conditions. Lutnick's statement is also contradicted by (checks notes) Howard Lutnick, who, last year, admitted to Fox News' Sean Hannity that, while he supported building the data centers, "these AI things suck water. They need water." Here's a cut of both of Lutnick's contradictory statements, courtesy of MeidasTouch senior digital editor Acyn Torabi. The Trump administration has been promoting data centers, with the president himself declaring on Tuesday that communities that oppose building them will end up "backwards and poor." However, the push has led to typically conservative ranching and farming communities banding together with left-leaning environmental advocacy groups to voice concerns about the centers. Some fear the centers will negatively affect drought-stricken waterways, cause pollution in food-growing areas and shrink farmland. HuffPost reached out to Lutnick for clarity on his data center water claim, but no one immediately responded. Not surprisingly, people on social media weren't impressed by Lutnick's seeming flip-flop, with many noting he also gave contradictory statements about his relationship with disgraced financier and alleged sex trafficker Jeffrey Epstein.

Howard Lutnick Calls AI Data Center Water Concerns 'Propaganda by Our Adversaries' -- Federal Research Tel

Commerce Secretary Howard Lutnick dismissed concerns about artificial-intelligence data centers' water consumption Wednesday, saying "data centers don't use water" and calling the criticism "propaganda by our adversaries" as communities increasingly push back against large AI infrastructure projects. Lutnick Dismisses Data Center Water Concerns "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," Lutnick told CNBC in an interview. "I mean, data centers don't use water. This is propaganda by our adversaries to try to slow us down." Federal research complicates that sweeping claim. The Lawrence Berkeley National Laboratory estimated U.S. data centers directly consumed about 66 billion liters of water in 2023, up from 21.2 billion liters in 2014. Hyperscale facilities alone could consume 60 billion to 124 billion liters annually by 2028. That said, water use varies by facility. Data Center Coalition, the membership association for the data center industry, says some centers rely on air cooling while others use water or hybrid systems. It cites a Virginia study finding 83% of data centers there use as much water as, or less than, a large office building. Operators are also adopting closed-loop and waterless cooling systems. Tech Dell Says the Data Center Is No Longer a Cost Center Dell says enterprises now see data centers as value creators, signaling a durable shift in AI infrastructure spending. 3 min read Read this article Trump Data Center Push Faces Backlash Lutnick's comments arrive as President Donald Trump intensifies his defense of data centers. Trump recently urged communities to "let Data Reign" and warned opponents could become "backwards and poor," prompting sharp criticism from Alexandria Ocasio-Cortez (D-N.Y.) and Republicans including Marjorie Taylor Greene. The administration has simultaneously acknowledged infrastructure-cost concerns. Its expanded Ratepayer Protection Pledge requires participating companies to fund new power generation and grid upgrades rather than shifting costs to households. The pledge now covers about 80% of U.S. electricity deliveries. Congress Examines Data Center Water Costs Congress is also examining water use. The House Energy and Commerce Committee is holding a Thursday hearing on draft legislation intended to make data-center developers, rather than local families, responsible for water infrastructure costs. Even industry supporters acknowledge the political risk. Texas Gov. Greg Abbott (R) earlier said developers "dug their own grave" by failing to engage communities. Investor Kevin O'Leary has likewise urged operators to "be clear about water usage and emissions." Tech Buffett Successor Says Data Centers Help Taxes and Schools: 'Significant Opportunity' For Berkshire Hathaway New Berkshire Hathaway CEO Greg Abel sees a big opportunity for the conglomerate when it comes to data centers. Here's the positives he sees. 3 min read Read this article Photo courtesy: Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.