As Queretaro Booms with Data Center Development, Concerns Rise Over Long-Term Sustainability and Water Security
In the scorching hot city of Queretaro, Mexico’s third most populous metropolitan area, a ticking time bomb is brewing. The insatiable demand for data center development, driven by multinational corporations seeking to capitalize on the region’s growing economic potential, has put an already strained water supply system in jeopardy.
This convergence of interests has given rise to what we call 4D – The Dilemma of Drought- Data Centers and Drinking Water. It’s a phenomenon that requires imagination to grasp its full implications, but one that demands attention from policymakers, business leaders, and residents alike.
WHAT IS 4D?
4D is not just a numerical concept; it represents the collision of four dimensions: economic development, drought, data centers, and drinking water. The intersection of these elements creates a perfect storm that threatens to upend Queretaro’s progress and jeopardize its very existence.
In the words of London Business School Professor Charles Handy, “Words are the bugles of social change.” 4D is not just a term; it’s a call to action – a reminder that our actions today will shape the future of this city, its people, and the environment.
THE CONSEQUENCES OF WILLFUL IGNORANCE
Award-winning writer Michael Lewis has described the dangers of willful ignorance in his book, The Fifth Risk. In the context of 4D, ignoring the long-term consequences of data center development on Queretaro’s water supply is a recipe for disaster.
As Lewis noted, “If your ambition is to maximize short-term gains without regard to the long-term cost, you are better off not knowing those costs.” The truth is that we can’t afford to ignore the costs of 4D. We must confront them head-on and find solutions that balance economic growth with environmental sustainability.
A CALL TO ACTION
The people of Queretaro, Mexico, and policymakers around the world must come together to address the 4D dilemma. We need to imagine a future where data centers and economic development coexist harmoniously with a sustainable water supply system.
It’s time to put our collective imagination to work and envision a better tomorrow for Queretaro and beyond. The clock is ticking, but together, we can turn this crisis into an opportunity for growth, innovation, and a more resilient future.
Mexico’s drought in Queretaro is a pressing issue that has been exacerbated by human mismanagement and inefficient water usage. According to a 2021 study, the city of Queretaro faces long-term groundwater depletion issues. As of May 2024, CONAGUA reported that 19.5% of Mexico was experiencing moderate drought, while 20% was in severe drought, and 12% was in exceptional drought.
The situation has worsened with a 26.53 percentage increase in the area affected by drought from 2023 to 2024. Water consumption by the industrial sector is estimated at 5%, and even if drought conditions improve this summer, annual droughts in Mexico are worsening in duration, frequency, and intensity.
Queretaro has been hit particularly hard, with 17 out of 18 municipalities experiencing moderate to severe levels of drought, making it the most severely affected Mexican state. CONAGUA issued a warning in May 2024, declaring the necessity for urgent water conservation measures due to severe drought levels, which include probable losses in crops or pastures and high risks of fires.
The city is also struggling with water scarcity, classified as high by CONAGUA. About 60% of Queretaro’s water supply originates from underground aquifers, while the remainder comes from neighboring Hidalgo state via the Acueducto II. The nation remains the No. 1 consumer of bottled water globally.
Queretaro is also set to become a hub for data center development, with Microsoft launching its first Hyperscale Cloud Data Center Region in Mexico and 18 other companies planning to install data centers in the state. The area is being referred to as “the valley of data centers,” and it’s expected to be one of the largest cloud infrastructures in the world.
This expansion is fueled by the growing global use of the internet, increasing adoption of cloud computing, ongoing digital transformation in businesses, and the rise of gaming culture participation. Mexico’s investment in data center development is forecast to exceed $1 billion by 2028.
However, this growth comes with concerns about water supply and electrical service delivery disruptions for residents and businesses in the Queretaro metropolitan area. Experts warn that it’s essential to highlight the critical role played by the electrical infrastructure’s capacity, which has the potential to significantly impact this growth.
As the world’s population continues to grow and urbanize, the demand for water is skyrocketing. According to the Global Facility for Disaster Reduction and Recovery (GFDRR), drought has a significant impact on project planning decisions, and data centers are no exception. With 50% of the global population projected to live in water-stressed areas by 2025, data center water usage is becoming a key environmental priority.
The reality of data center water consumption is staggering. A typical hyperscale data center consumes around 550,000 gallons (2.1 million liters) of water per day, while smaller facilities use significantly less – around 18,000 gallons (68,000 liters) per day. To put these numbers into perspective, the total water consumption for a single large-scale data center over the course of a year would be equivalent to serving a small town’s population.
In recent years, concerns about water scarcity have led to increased scrutiny of data centers’ environmental impact. In response, operators are implementing new technologies and strategies to reduce their water usage. These innovations include more efficient cooling systems, rainwater harvesting, and gray water reuse – the practice of recycling wastewater for non-potable purposes.
However, as data center development accelerates and water scarcity becomes more pronounced, the dilemma is clear: how can we balance the need for these facilities with the finite resources available? The solution lies in a combination of short-term fixes and long-term planning. Short-term measures include optimizing existing infrastructure, implementing efficient cooling systems, and adopting water-saving technologies.
In some regions, governments are taking proactive steps to address this issue. For example, the state of Queretaro in Mexico has launched an ambitious project to double its water supply capacity through a new infrastructure development called “Batan, Water for All.” This initiative aims to provide up to 1,500 liters per second of treated water to meet the growing demand.
While progress is being made, it’s essential to acknowledge that these solutions will not be available immediately. In many cases, upgrades and new infrastructure will take several years to complete – a fact that highlights the urgency of this issue.
In conclusion, the intersection of drought, data center development, and drinking water usage has created a pressing dilemma that requires immediate attention. By recognizing the complexities involved and working collaboratively towards sustainable solutions, we can mitigate the environmental impact of data centers and ensure that our water resources are protected for future generations. As author Michael Lewis notes, “We often decide that an outcome is extremely unlikely or impossible because we are unable to imagine any chain of events that could cause it to occur.” Let us challenge ourselves to imagine a different future – one where technology and innovation converge to create a more sustainable and equitable world for all.
Source: Mexico Business News
