Additional Coverage:
Commerce Secretary Howard Lutnick’s recent remarks on CNBC’s Squawk Box about AI data centers and water usage have sparked controversy due to factual inaccuracies. During Wednesday’s interview, Lutnick emphatically denied that data centers consume water, dismissing concerns as “propaganda.”
Lutnick humorously compared water use by data centers to that of cattle, stating, “The number one product in America that uses water is cattle,” while laughing off criticisms about data center water consumption. He went on to say, “I mean data centers don’t use water. This is propaganda by our adversaries to try to slow us down.”
He praised data centers as engines of economic growth, asserting they bring benefits to surrounding communities. “Build a data center, produce huge economics… those communities will just be better off,” Lutnick added.
However, experts and environmental organizations emphasize that data centers do rely heavily on water, primarily for cooling their hardware to ensure continuous operation and longevity. Depending on their size, data centers can use hundreds of thousands or even millions of gallons of water daily. Much of this water comes from local public utilities or wells tapping into groundwater sources.
Public opposition to new data center projects is growing. A recent Gallup poll found that about 70% of Americans are against data centers being built in their neighborhoods.
Lutnick’s comments echo earlier remarks he made on Fox News’ Sean Hannity show, where he highlighted the shift toward automated, high-tech factories in the U.S., noting that these facilities create fewer but higher-paying jobs. “These AI things, they suck water and they need water and so they need a plumber, but not a ‘plumber’ plumber, they need, like, an HVAC specialist that starts at $100,000,” he said, underscoring the skilled labor required to support these operations.
While Lutnick stresses the economic benefits of data centers, the issue of their water consumption remains a point of contention among policymakers and the public alike.