Over the past decade, corn and soybeans arent the only things sprouting from fertile Iowa soil. Data centers have been popping up with growing regularity. Tech giants like Apple, Google, Meta, and Microsoft have flocked to the Hawkeye State due to ample land, low energy costs, minimal earthquake risk, and generous tax incentives.But as climate change accelerates and water tables drop in some regions, a critical debate is surfacing. Groundwater in Iowa is not evenly distributed. Data centers in one place can be very different than in another, observes Keith Schilling, state geologist and director of the Iowa Geological Survey at the University of Iowa.Not surprisingly, the growing demand for water is trickling into policy, consumption patterns, environmental impacts and costs. Amid competing demands -- agriculture, business and residential use -- Iowa officials are taking notice. With increased demand and continued drought, aquifers arent being recharged as they were in the past, Schilling notes.Into the FlowAt present, 34 data centers exist across Iowa. Each day, these facilities consume somewhere between 300,000 gallons and 1.25 million gallons of water for cooling. At any given location, they typically account for about 2% to 8% of total water consumption -- though some facilities have agreements to use more water, if necessary.Related:Much of this water comes from underground aquifers. Under normal circumstances, theres sufficient rainfall to support agriculture, manufacturing and home use, but for more than a decade most of the state has endured a drought. This has translated into a need to pump additional water for crops, food processing, and ethanol production. According to Iowa Environmental Council, some wells are now operating at 20% of their original capacity.To be sure, the water situation varies considerably across the state -- and even within regions. For example, the state is bounded by the Missouri River and Mississippi River and other waterways run through Iowa. The eastern third of the state has abundant shallow carbonate aquifers that are recharged every year with precipitation, Schilling says. In central and western Iowa, the conditions are less favorable. The groundwater systems are shallower and more vulnerable.Twenty of the states data centers are in the Des Moines area, which is near the center of Iowa. So far, this part of the state has avoided problems associated with droughts and water shortages. But as newer facilities come online, water consumption increases and drought lingers, questions about water availability are growing -- particularly in more vulnerable areas in the western part of the state.Related:In many cases, companies looking to build data centers are using criteria other than water availability to select a site, Schilling says. They are often more interested in the surrounding infrastructure.Beneath the SurfaceBalancing water use across agriculture, manufacturing firms and tech companies -- while keeping rates down for residential users -- is a balancing act based in both economics and sustainability. When fixed costs can be spread amongst more users, everyone experiences lower rates -- including residential customers, says Roy Hesemann, utilities director for Cedar Rapids.Located toward the eastern portion of the state -- adjacent to the Cedar River -- the city has sufficient water and energy resources to support major data centers, Hesemann says. Cedar Rapids recently approved a $576 million Google data center that will use 200,000 to 1 million gallons of water daily and pull 25 megawatts of electricity. The project will generate $1 billion in local property taxes over 20 years (with about $529 million flowing back to Google).Related:The facility wont place additional pressure on supply or impact water standards. However, It will require us to accelerate timelines for planned expansion at the Northwest Water Treatment Plant to meet future capacity needs, Hesemann says. For now, the citys water rates rank in the middle for Iowa. Gaining additional efficiency is important. The city is exploring ways to reuse water, including discharge from data centers.Google is planning another $1 billion data center in Council Bluffs, which sits in the more arid western portion of the state. Once completed, the facility will add capacity to two other facilities built in 2012 and 2015. The expansion will result in a total of three datacenters that comprise nearly 3 million square feet of space split among 3 buildings. Google has invested over $5 billion in the region since 2007.Although these projects make economic sense, observers such as Schilling are taking notice and advocating for a better understanding of how data centers impact water consumption in Iowa. With ongoing drought conditions and growing demand for limited water resources, some aquifers are not being recharged adequately, he explains. Some areas may not be ideal locations for data centers.Data StreamsThe Iowa legislature is taking notice. In 2024, it designated $250,000 to map aquifers and study groundwater levels to gain a better understanding of how various user groups -- including data centers -- impact recharge rates and water levels. Governor Kim Reynolds described the funding as crucial for the development of models for budgeting this state's water resources."A growing dependence on data centers may be cause for concern, but digital technologies might also provide answers for Iowa. In July 2021, Iowa State University announced that it had landed $20 million grant from the US federal government to establish an AI Institute for Resilient Agriculture. It is developing digital twins, robotics, drones and connected field sensors that reduce water and chemical use while boosting crop yields.It makes sense for companies to establish data centers and other facilities in Iowa because of land availability, water resources, financial incentives and renewable energy, says Soumik Sarkar, a professor of mechanical engineering and computer science at Iowa State University. At the same time, we have witnessed a 20% to 30% increase in water demand for large AI companies and the state is coping with a drought. So, we must find ways to manage resources better.Another five-year, $7 million federal government funded project called COALESCE (COntext Aware LEarning for Sustainable CybEr-agricultural systems) is helping researchers at Iowa State University study ways to embed digital technologies, including AI, deeper into the food production system. AI and other tools can help us optimize processes, reduce pesticides and pollution and maximize our water systems, Sarkar states.Its important to understand how data centers and existing infrastructure impact water use -- and aquifers in Iowa, Schilling says. We dont want to reach a point where shortages occur, and people claim that the situation has taken them by surprise. We have the technology and tools to manage water resources effectively. We must use them to determine where to locate data centers and other facilities.