A proposed Google data center in Cedar Rapids could use between 200,000 and 1 million gallons of water per day, on average. Other Iowa cities with data centers are also drawing more water from aquifers and rivers to meet demand. A Cedar Rapids data center would likely consume at least 25 megawatts of electricity, equivalent to powering about 12,000 homes.
Alliant Energy, which is proposing a rate hike unrelated to the data center, says that attracting Google would allow the utility to spread future costs over more customers.
In Cedar Rapids, where tax breaks have been approved for the proposed Google data center, the top 10 largest water users currently consume about 60% of the city’s average daily treated water. If Google establishes its data center in the city, this percentage could increase to 70% or more, according to estimates provided by city leaders to The Gazette.
The city has surplus water capacity, mostly unused except during the hottest weeks of summer, and has the potential to drill more wells along the Cedar River to increase the water supply. Other Iowa communities with large-scale data centers are also planning infrastructure upgrades to extract more water from rivers and aquifers.
City Manager Jeff Pomeranz of Cedar Rapids acknowledged that data centers use a significant amount of water during a recent discussion with The Gazette’s editorial board.
The city of Cedar Rapids currently draws water from wells beneath the Cedar River, processing it into drinking water. The city produces approximately 40 million gallons of water per day, with the majority of it going to its 10 largest users, including ethanol plants and food processors. The city of Cedar Rapids produces approximately 40 million gallons of water per day, with 60 percent of that supply going to its 10 largest users, including ethanol plants and food processors. This allocation raises concerns among residents about the potential impact of a proposed $576 million data center by Google on the city’s water and electricity resources. Questions arise about whether the data center would strain the water supply during droughts or increase residents’ utility rates.
State Geologist Keith Schilling reassures that under normal conditions, the Cedar River and its alluvium can sustain a data center’s water demands. However, concerns linger about the capacity of the city’s current wells to handle the additional volume, especially during dry spells.
Data centers are key infrastructure for tech firms, housing computer servers and hardware that support online applications and data storage. The growing reliance on cloud-based services and artificial intelligence highlights the significant energy consumption associated with data centers. Jim Martin-Schramm from Clean Energy Districts of Iowa emphasizes the link between cloud computing convenience and high energy usage.
The potential construction of a Google data center in Cedar Rapids raises important questions about the city’s water resources and the environmental impact of increased energy consumption. Residents and officials must carefully consider the implications of such a development on the city’s infrastructure and sustainability. Google is proposing to build a large data center in Cedar Rapids, adding to the 26 data centers already present in Iowa. Other tech giants like Meta, Apple, and Microsoft also have data centers in different cities across the state. These data centers require a significant amount of energy to operate and cool the equipment, ensuring continuous high performance.
The negotiations between Google and Alliant Energy for the construction of the data center in Cedar Rapids are ongoing. The city has approved a plan to grant $56 million in tax breaks to Google, with the requirement of creating at least 31 high-paying jobs. Cedar Rapids leaders are excited about the potential tax benefits and the economic growth that Google’s presence could bring to the area.
Water usage is a critical issue for data centers, with reports indicating that they consume large amounts of water for cooling purposes. Google has pledged to provide transparency regarding its water consumption at data centers, with their Council Bluffs site using the most water among all Google data centers in the country. The company emphasizes its climate-conscious approach to cooling decisions in data centers.
While the construction of the data center in Cedar Rapids is not yet confirmed, the city and Alliant Energy are proceeding cautiously. Google’s decision will have a significant impact on the local economy and could potentially attract further growth in the tech industry in the Cedar Rapids area. The company focuses on evaluating hyperlocal hydrology to determine the most effective cooling solution for each of its campuses. This could involve utilizing air cooling, water cooling, refrigerants, or a combination of these methods.
One of the company’s data centers in Cedar Rapids is projected to be one of the city’s largest water consumers. The city’s top water customer currently uses an average of 11.7 million gallons of water per day, significantly more than the next highest user, which consumes 3.3 million gallons daily on average. While the names of these major industrial water users have not been disclosed by Cedar Rapids officials, a previous report from 2010 indicated that the largest water consumer in the city was the corn processing giant ADM.
Collectively, the top 10 water users in Cedar Rapids use approximately 23.8 million gallons of water per day on average. City officials have stated that a Google data center could account for up to two-thirds of this total usage, equating to anywhere between 200,000 to 7.8 million gallons per day based on the current top 10 list.
The city’s water treatment capacity is around 40 million gallons per day on average, with the ability to increase this to 60 million gallons per day if necessary. During peak summer months, water consumption can reach as high as 55 million gallons per day. To accommodate potential growth, the city is reserving additional water treatment capacity in the event that all five proposed data center buildings are completed.
In terms of energy consumption, a Google data center would rank among the top 10 percent of Alliant Energy’s largest electricity customers. This substantial electricity demand has led Alliant to actively seek out data centers as new customers in order to optimize its business operations and maintain competitive pricing in the long run.
Alliant has sought approval from the Iowa Utilities Board to increase rates for residential electric customers by 7.7 percent and natural gas customers by 5 percent. While this rate increase application did not initially consider a data center, the board has requested additional information from Alliant regarding a potential data center customer like Google. If approved, Google could qualify for Alliant’s Individual Customer Rate plan designed for customers using at least 25 megawatts of electricity.
ITC Midwest, responsible for transmitting electricity generated by Alliant, has submitted an application for up to 300 megawatts of new load from facilities near Big Cedar. While this new load capacity remains uncertain in terms of actualization and size, Alliant is preparing to provide service as early as March 3, 2026. Climate activists are closely monitoring the energy consumption of data centers nationwide, particularly those that are powered by utilities relying on coal and natural gas plants emitting greenhouse gases.
Alliant, a major energy provider, derives more than half of its energy from renewable sources like wind and solar. The company has plans to add 400 megawatts of solar energy by the end of the year, with a portion coming from the Duane Arnold Solar projects near Palo. However, Alliant still relies on coal and gas for some of its energy needs.
On the other hand, Google has announced its goal to operate its business solely on carbon-free energy 24/7 by the year 2030. The company is also exploring demand response strategies to reduce electricity usage during peak demand periods, such as summer afternoons.
According to Martin-Schramm, reducing electricity consumption during peak times can potentially lower the overall cost of power for all customers.
In Iowa, the Meta data center complex in Altoona consumes more water than popular attractions like Adventureland amusement park and Prairie Meadows Casino & Racetrack. When Meta expands with two new buildings next year, it is expected to become Altoona’s largest water consumer, using over 300,000 gallons of water daily.
Altoona Utilities Director Dan Scott revealed that Meta has the right to request up to 1 million gallons of water per day, which prompted the city to invest in a fourth water treatment plant and two new wells to supply an additional 4 million gallons of water daily.
Similarly, Google financed the expansion of a water treatment plant in Council Bluffs to meet the water demands of its data centers in the area. The Council Point Water Purification Plant can now pump up to 10 million gallons per day, as reported in the Water Works’ 2022 annual report.