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AI Data Centers Reduce On-site Water Use but Increase Power Plant Consumption, Bloomberg Reports
AI data centers are using new cooling systems to save water on-site. However, this leads to higher water consumption at power plants that generate electricity for them. Bloomberg report notes the shift transfers water demand upstream rather than lowering overall usage. Some states, such as Louisiana, are considering regulatory measures, including a possible moratorium on data center approvals. Prediction markets show a 2.6% chance of a Louisiana moratorium by end of 2026, slightly down from previous levels. Observers will watch statements from Governor Jeffrey M. Landry and the legislature.