Tech behemoths reconsider data centers amidst Latin America's drought woes

Tech giants reconsider their data center strategies in regions of Latin America affected by drought.

Tech behemoths reconsider data centers amidst Latin America's drought woes
A prolonged drought affecting much of South America has compelled major tech companies such as Google and Amazon to revise their plans for water-intensive data centers.

These data centers, which house enormous servers, are proliferating globally to manage the vast amounts of data produced by billions of smartphones, tablets, and other connected devices.

While these centers’ extensive energy use has garnered international attention, the considerable water consumption associated with their cooling systems has received relatively little focus—until now.

Cooling equipment accounts for roughly 40 percent of a data center's structure.

"There are billions of transistors in a circuit in high-frequency processors. That generates a lot of heat," explained Eduardo Vera, coordinator of the Center for Mathematical Modeling at the University of Chile.

Google's proposals for two new data centers in Chile and Uruguay have brought the issue of water consumption to the forefront.

The tech giant has plans to construct its largest data center in Latin America in the Santiago suburb of Cerrillos.

Initial plans for the $200 million project included a cooling system projected to consume an astounding seven billion liters of water per year—equivalent to the annual usage of the suburb's 80,000 residents.

However, a prolonged drought in Chile has dampened local enthusiasm for the mega-project.

In January, an environmental court mandated Google to revise its planning application to lessen water consumption.

Last month, the company, which operates its first Latin American data center in Quilicura in northern Santiago that uses about one billion liters of water per year (equivalent to 285 Olympic swimming pools), unveiled a newer, significantly less water-intensive cooling model for the Cerrillos facility.

Google announced that the new center would employ air cooling technology, significantly minimizing its water usage.

"They fought us ... but finally they changed the cooling system and we set a precedent," Tania Rodriguez from the non-governmental Community Socio-Environmental Movement for Water and Territory told AFP.

Adapting to climate realities

A month prior to Google's announcement regarding its plans in Chile, environmental activists in Uruguay achieved a similar success.

When the company first revealed its $850 million investment in a center about 30 kilometers from the capital Montevideo in 2019, it forecasted an annual use of 2.7 billion liters of water.

Nevertheless, following an extraordinary drought in 2023 that brought the country’s drinking water supply to the brink, the company reconsidered and chose more costly air cooling technology.

Regarding the changes, the California-based company told AFP it was implementing "a climate-conscious approach" to "minimize climate impact and use natural resources responsibly."

Aiming for data investment

Chile's government is focused on attracting billions of dollars in investment for the country's data center industry, promoting its stability and robust internet connectivity as major advantages.

President Gabriel Boric announced in June plans to increase Chile's number of data centers from 22 to 50.

Science and Technology Minister Aisen Etcheverry informed AFP that their water consumption would be "practically zero."

Will Hewes, head of water sustainability for Amazon Web Services, which plans to establish two data centers in Santiago, told AFP that the company aspires to make all its data centers "water-positive" by 2030, meaning it intends to conserve or return more water than it uses.

However, at existing data centers like Chile's Quilicura, water use will continue to flow in one direction—from the ground to the data center.

"Because data centers operate 24/7, it's very difficult for them to change their cooling system once they are already built," said local environmental activist Rodrigo Vallejos.

Sanya Singh contributed to this report for TROIB News