Montana Drought Spurs Scrutiny of AI Data Center Water Use

Montana’s record-setting drought has put a spotlight on a surprising culprit: AI-powered data centers. As rivers run low and reservoirs shrink, local communities are demanding answers about how much water these massive tech facilities are using—and what it means for families, farmers, and workers already struggling with water shortages and rising bills.

What Happened

This fall, a coalition of Montana residents and environmental groups called for a formal review of water use by data centers across the state. The push comes after months of below-average rainfall and the worst drought conditions in decades, according to the U.S. Drought Monitor. At the center of the debate are facilities run by major tech companies like Google and Meta, which rely on vast amounts of water to cool the servers powering everything from AI chatbots to cloud storage.

Montana has become a popular destination for data centers in recent years, thanks to cheap land and access to hydroelectric power. But as AI workloads have exploded, so has the demand for cooling. In some cases, a single large data center can use as much water as a small city—often drawn from the same rivers and aquifers that supply local homes and farms. With the state’s water supply under stress, residents are asking whether these facilities should face stricter oversight or limits on their water use.

There is currently no statewide law in Montana that specifically regulates data center water consumption. Instead, water use is governed by a patchwork of local permits and state Department of Natural Resources and Conservation (DNRC) rules. Critics say these rules haven’t kept up with the scale of new tech infrastructure, especially as AI drives up demand. The Montana Environmental Information Center has called for a moratorium on new data center permits until a full review is completed.

How This Affects Everyday People

The impact of unchecked water use by AI data centers isn’t just a distant policy debate—it’s already hitting regular people in Montana and beyond. When water is scarce, the competition between tech companies and local communities can have real consequences:

• Higher water bills: If data centers draw down local supplies, utilities may need to invest in new infrastructure or buy water from elsewhere, driving up costs for households.
• Stricter water restrictions: During droughts, families may face tighter limits on watering lawns, washing cars, or even basic household use, while data centers continue operating.
• Pressure on farmers and ranchers: Agriculture is Montana’s largest industry, and many farms depend on the same rivers that supply data centers. Less water for irrigation can mean smaller harvests and lost income for local workers.
• Community health risks: Lower water tables can affect drinking water quality, increase wildfire risk, and harm fish and wildlife that local families depend on for recreation and food.

For parents, students, and workers, these changes can add up to real stress. Imagine telling your kids they can’t fill up a kiddie pool because the local data center needs to keep its servers cool. Or watching your grocery bill rise as drought cuts into local food production. These are the kinds of trade-offs that communities are now being forced to confront.

If you want to know whether there’s a data center near your town, you can check resources like the AI data center map to see what’s operating in your area.

The Bigger Picture

Montana’s debate is part of a much larger trend. Across the U.S., the rapid growth of AI and cloud computing is putting new strains on local water and energy systems. In 2023, The New York Times reported that Google’s data centers in The Dalles, Oregon, used over 350 million gallons of water in a single year—enough to supply thousands of homes. Microsoft’s Quincy, Washington facility used more than 500 million gallons. These numbers are only expected to rise as AI becomes more central to everything from online search to self-driving cars.

This isn’t just a Western problem. Communities in Georgia, Texas, and even the Midwest have begun to push back against new data center projects, citing concerns over water, energy, and pollution. In some cases, local governments have imposed moratoriums or demanded more transparency from tech companies about their resource use. For a deeper dive into how much water AI actually uses, see our explanation on AI water use.

At the policy level, there’s growing talk of new regulations. In 2025, Oregon passed House Bill 3332, requiring data centers to publicly report annual water use and submit conservation plans. Other states are considering similar laws, but Montana has yet to act. Meanwhile, the federal government has launched a review of data center environmental impacts, but no nationwide rules exist yet.

These debates are fueling a broader backlash against AI infrastructure in many communities, as people question whether the benefits of new technology are worth the hidden costs to local resources.

What You Can Do

• Ask your local officials about data center water use: Attend city council meetings or contact your state representatives to demand transparency on how much water local tech facilities are using.
• Check if there’s a data center near you: Use the AI data center map to see if your community could be affected.
• Support water conservation efforts: Join or donate to local groups advocating for responsible water use, or participate in community discussions about drought and infrastructure.
• Educate your family and neighbors: Share information about how AI and tech infrastructure impact local water, and encourage others to get involved in the conversation.
• Push for stronger laws: Ask your state lawmakers to consider regulations like Oregon’s HB 3332, requiring data centers to report and reduce water use.

The Bottom Line

Montana’s drought is forcing a hard look at the hidden costs of AI and the tech boom. As data centers compete with families and farmers for limited water, the need for transparency and fair regulation is clear. Everyday people have a stake in this debate—and a voice in shaping how technology fits into their communities. The choices made now will affect water bills, food prices, and quality of life for years to come.