In Latin America, data center plans fuel water worries

• Google plans second Latin America data center in Uruguay
• Proposals cause anger as drought hits domestic supplies
• Global data center boom sparks protests over resources

BUENOS AIRES - Uruguay's devastating drought was at its peak when President Luis Lacalle Pou took an unexpected question from a young student during a visit to a primary school in the capital: "Why is the water so salty?"

"We have to wait for the rain," Lacalle Pou replied. "We must save our water only for essential needs."

Recent rainfall has eased the parched conditions that prompted the government to mix water supplies with a brackish source in parts of Montevideo, and the capital's depleted reservoirs have started to recover.

But many Uruguayans unable to afford bottled water say the government has prioritized industrial uses during this year's drought, stirring anger over plans by Google to build a data center using millions of liters every day to cool its servers.

"These companies consume vast volumes of water, which are, in turn, our reserves," said Daniel Pena, a sociologist and researcher at the Republic University in Montevideo.

"Now, with the drought, it's as if someone emptied your bank account. Your savings just aren't there anymore," said Pena, who has campaigned against growing use of potable water by industry as a member of the Coordination for Water civil group.

Alphabet-owned Google has acquired land in the western department of Canelones to build its second data center in Latin America. In 2015, it opened its first in the region in a suburb of Chile's capital, Santiago, announcing three years later that it would triple its size to meet growing demand.

The company's plans to build a second project in Chile - which has been gripped by drought for more than a decade - have faced delays since 2020 as local communities filed environmental complaints.

Squandered water supplies?

According to Google's sustainability data, the company's more than 20 data centers consumed approximately 5.22 billion gallons (19.8 billion liters) of water in 2022, or more than 14 million gallons (53 million liters) per day.

That is equivalent to the domestic water consumption of nearly 175,000 people in the United States, as per the latest estimates from the U.S. Environmental Protection Agency.

It is still much less than other industries, such as Uruguay's key pulp and paper sector, but it poses a further strain on increasingly limited water supplies as climate change increases the frequency and severity of droughts.

Surging internet use in recent years has accelerated demand for new data centers around the world, increasing competition for land and raising concerns about the use of resources - including water.

Data center growth is underpinned by how the pandemic supercharged online and especially video activity, triggering a surge in Zoom calls, photo-sharing and social media use. Novel technologies such as artificial intelligence and autonomous driving could spur further expansion.

Google's planned data center in Canelones would power user requests for its array of internet services, such as YouTube, Gmail and Search.

Initial plans for the facility envisaged daily water use of 7.6 million liters (about 2 million gallons), according to information obtained by Pena following a freedom of information request last year.

That is equivalent to the daily water consumption of 55,000 people in Montevideo, a city of 1.4 million people. Most of the water used in cooling evaporates, meaning it can not be retained for other uses.

Running a soup kitchen that offers meals to children in the poor Nuevo Comienzo neighborhood just outside the capital, Fabiana Molina, 50, said she feared the poor would bear the brunt of growing competition for limited water resources.

"The 7.6 million liters that Google will use are 7.6 million squandered," she said.

Uruguay's industry ministry said the original project had been withdrawn by the company, and that it was now working with an alternative plan that would use less energy and water.

A Google official told Context the project is still in the "exploratory phase" and must undergo environmental approval, for which final figures may differ from initial estimates.

Global pushback

The pushback against Google's plans in Uruguay comes amid growing opposition to data centers around the world - from Europe to the United States and elsewhere in Latin America.

In Chile, local residents and authorities filed a formal complaint against Google's second planned data center at the country's environmental court in 2020, prompting Google to commit to adopting alternative cooling methods. But the project remains on hold.

A data center project planned by Microsoft in Quilicura, close to Google's existing Chilean facility, has encountered similar opposition, delaying the approvals process amid concerns from the local community about its potential impact on an ecosystem already suffering from dry weather.

The project, however, is moving forward as the U.S. company undergoes the environmental permitting process. An additional amendment, in which Microsoft committed not to draw water from nearby sources, led to approval from most local public bodies.

Tech companies highlight the positive economic impact of data centers. Google said its Chilean data center required a $290-million investment and helped boost gross domestic product (GDP).

When Google announced in 2018 it would invest an additional $140 million to expand it, then President Sebastián Piñera hailed it as showing Chile was part of the "fourth industrial revolution".

But critics say data centers create few jobs and give little back in exchange for the resources they use, compounding public anger as water scarcity impacts daily life.

At her home in El Tobogán, a slum area on the outskirts of Montevideo, pensioner Lita Leite said she had to use salty water to prepare her mate, a traditional infused herbal drink drank widely in parts of South America.

"It was extremely foul-tasting ... (but) for me, it was impossible to afford bottled water daily," said Leite, 67, accusing Lacalle Pou's conservative government of having "handed over control of our natural water."

"Big companies take millions of liters of water yearly, but it seems like us Uruguayans have lost our rights," she said.

($1 = 38.1500 Uruguayan pesos)

(Reporting by David Feliba; Editing by Helen Popper.)