Data Center Water Use: Nixval CEO on the Real Impact of AI 2026

Daniel Harrolds
Data Center Water Use: Nixval CEO on the Real Impact of AI
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Data center water use has become a flashpoint in the debate over AI infrastructure, but Nixval CEO José Luis Gómez-Pardo says the reality is far less dramatic than the headlines suggest. In a recent interview, he pushed back on claims that these facilities are draining local water supplies, arguing that the actual consumption at his company's center is comparable to that of a standard office restroom.

His comments come as Spain grapples with a surge in data center construction. According to the interview, the country already has more than a hundred data centers built or planned, representing 2.9 GW of power capacity. Globally, the five largest US tech companies are expected to spend around $900 billion this year, largely driven by AI's insatiable compute needs.


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The Water Consumption Myth

Gómez-Pardo's claim is striking: "The water bill for our data center is literally the same as the consumption of the bathrooms." He argues that while data centers are energy-intensive, their water footprint is often overstated, especially for facilities that use air cooling rather than evaporative cooling systems.

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Image: Goldman Media

The distinction matters. Many hyperscale data centers rely on evaporative cooling, which can consume millions of gallons of water per day. But smaller or well-designed facilities can minimize water use through closed-loop systems or air-based cooling. Nixval, according to its CEO, falls into the latter category.

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Image: Goldman Media

Why Water Became a Flashpoint

Water scarcity is a real concern in many regions, particularly in drought-prone areas like Spain. When data centers announce plans to build in these areas, local communities often worry about competition for limited resources. Gómez-Pardo acknowledges this concern but insists that the industry's water use is frequently misunderstood.

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Image: Goldman Media

He also points out that data centers are often targeted politically because they are land-intensive and create relatively few jobs compared to other industries. This makes them an easy scapegoat for broader anxieties about technology's impact on society.

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Image: Goldman Media

The Real Cost of AI Infrastructure

While water may not be the biggest issue, the energy demands of AI are undeniable. The $900 billion spent by tech giants this year is a testament to the scale of the challenge. Gómez-Pardo notes that this investment is necessary to keep up with the computational requirements of large language models and other AI applications.

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However, he warns that the cost of building and operating data centers is becoming a limiting factor for AI profitability. Energy prices, land costs, and regulatory hurdles all contribute to the growing expense of expanding infrastructure.

Spain's Data Center Boom

Spain has become an attractive destination for data centers due to its relatively low energy costs and strategic location. The country's 2.9 GW of planned capacity is a sign of confidence in its digital future. But Gómez-Pardo cautions that this growth must be managed carefully to avoid straining local resources and sparking backlash.

He advocates for greater transparency from operators about their actual resource consumption. "We need to communicate better," he says. "People deserve to know the facts, not just the fears." The background to this story is set out in Spain Tightens Data Center Rules: 80% Renewable Energy and Water Use Regulated. A related thread runs through Amazon Data Center Water Use in Spain Approved to Rise 48%. Earlier coverage in Texas Governor Threatens Penalties for Data Centers Over Water Use shows how the argument developed.

What This Means for the Industry

The debate over data center water use is unlikely to fade anytime soon. As AI continues to expand, so will the demand for infrastructure. Gómez-Pardo's perspective offers a counterpoint to the alarmist narrative, but it also highlights the need for responsible communication and design. A closer look at the same subject appears in China's AI Infrastructure Strategy Expands to Brazil with Alibaba Cloud. Anyone following the wider picture can start with Ceuta Migration Flashpoint: Why Thousands Crossed from Morocco. The same theme surfaces in Ceuta Migration Crisis: Why It's a Flashpoint and How Crossings, which takes a different angle.

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For now, the industry faces a dual challenge: reducing its environmental footprint while earning public trust. Companies that can demonstrate efficient water and energy use may find it easier to secure permits and community support. Context on how this played out before sits in Data Centers' Water Consumption Triples: The Hidden Cost of AI. A companion piece, Business: latest articles, approaches the same subject from another angle.

Key Takeaways

  • Data center water use is often exaggerated; some facilities consume no more water than a typical office building.
  • Spain has over 100 data centers built or planned, with a total capacity of 2.9 GW.
  • Global tech spending on AI infrastructure is expected to reach $900 billion this year.
  • Energy costs, not water, are the primary limiting factor for AI profitability.
  • Transparency and better communication are essential to address public concerns.

Comparing Water Use: Data Centers vs. Other Industries

Industry Estimated Water Use Notes
Data center (air-cooled) Minimal (similar to office) Nixval's claim
Data center (evaporative) Up to 5 million gallons/day Hyperscale facilities
Agriculture ~70% of global freshwater Largest consumer
Thermoelectric power ~10% of global freshwater Cooling for power plants

FAQ

How much water does a data center use?

It varies widely. Air-cooled data centers use minimal water, while evaporative-cooled hyperscale facilities can consume millions of gallons per day. Nixval's CEO claims his center's water use is equivalent to its bathrooms.

Why are data centers controversial?

They are energy-intensive, occupy large areas, and create few jobs, leading to concerns about resource strain and limited local economic benefit. Political groups often cite these factors in opposition.

Is AI driving up data center water consumption?

AI increases demand for computing power, which can lead to more data centers. However, water use depends on cooling technology. Many new facilities are designed to be more water-efficient.

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What is Spain's data center capacity?

Spain currently has over 100 data centers built or planned, totaling 2.9 GW of power capacity, according to the interview.

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Daniel Harrolds

Author

Daniel Harrolds

With a career spanning four decades, Daniel is almost a library in the field of precious metals investing and Gold IRAs. His insightful strategies and pragmatic results-oriented approach make him a resource in safeguarding wealth, and financial foresight.


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