Key Takeaways
- Oracle’s direct-to-chip closed-loop cooling uses effectively zero potable water daily after the initial system fill
- At Port Washington, Wisconsin, 172 of 672 acres are being preserved or enhanced, including 2,000+ native trees planted
- Oracle committed $50 million to modernize Doña Ana County, New Mexico’s public water infrastructure
- Michigan’s Saline Township site keeps three-quarters of its land as farmland, wetlands, and open space
A large conventional data center can drain up to 5 million gallons of water every single day, roughly equivalent to the daily needs of a town of 50,000 residents. That number explains why community opposition has stalled or canceled more than $64 billion in data center projects between May 2024 and March 2025. Oracle’s AI data center buildout responds to that resistance with specific engineering choices and community investment commitments that other operators have not matched at this scale.
AI Data Centers Are Facing a Community Trust Crisis
More than 3,900 data centers operate across the United States as of January 2026, representing nearly 37% of the world’s total. The growth rate has accelerated sharply with AI demand, and communities are pushing back. The World Resources Institute reports that a single modern AI data center can consume as much electricity as 100,000 homes. Water demand follows an equally steep curve.
Two-thirds of data centers built or in development since 2022 sit in water-stressed regions, including southern Arizona, the Colorado River Basin, and Texas. Brookings Institution analysis from 2025 projects that AI-related data center cooling water use may surge 870% as new facilities come online. Communities in those regions have legitimate grounds for concern, and they are increasingly organized.
The core challenge is not data centers themselves. It is how they are built, where they draw resources, and whether those choices protect or strain the communities that host them.
How Oracle’s Closed-Loop Non-Evaporative Cooling Works
Conventional evaporative cooling systems operate like a swamp cooler. Water evaporates to carry heat away, and the system draws a fresh continuous supply to replace what is lost. The Uptime Institute estimates this approach can consume millions of gallons of water per year for each megawatt of IT load. In water-stressed regions, that demand competes directly with farms, households, and municipal systems.
Oracle’s AI data centers across New Mexico, Michigan, Wisconsin, and Texas use direct-to-chip, closed-loop, non-evaporative cooling instead. The principle mirrors a car’s cooling system. Coolant circulates through sealed pipes, absorbs heat at the processor level, releases that heat to outdoor air through radiator-style coils, and recirculates. The coolant is not consumed. The heat leaves the building; the liquid does not.
What This Means for Daily Water Use
The system requires a one-time fill at startup and nothing more. After that, ongoing potable water use for cooling drops to effectively zero. Water consumption during normal operations covers only what a standard office building needs: restrooms, kitchens, and janitorial services. That is the practical outcome the engineering decision delivers.
The difference across cooling methods is significant:
| Cooling Method | Daily Potable Water Use | Fresh Supply Required | Best Suited For |
|---|---|---|---|
| Conventional evaporative | Millions of gallons per year per MW | Continuous | Moderate climates, older builds |
| Air cooling (free cooling) | Minimal | No | Cold climate regions |
| Direct-to-chip closed-loop | Effectively zero after startup | One-time fill only | High-density AI compute campuses |
For communities in drought-prone areas or near protected freshwater sources, the bottom row changes the entire conversation about hosting a data center.
The industrial cooling infrastructure behind direct-to-chip closed-loop systems is purpose-built for high-density AI compute loads, moving heat out without drawing on local water supplies.
Oracle’s Four Active Sites: Specific Commitments by Location
Oracle is not applying its design standard selectively. Each active build site runs the same closed-loop cooling system and adds location-specific environmental and community protections based on local conditions.
Port Washington, Wisconsin: The site spans 672 acres. Oracle is preserving or enhancing 172 of those acres, protecting existing wetlands, and planting more than 2,000 native trees to increase local biodiversity. The campus also co-funds the Valley Creek Corridor Revitalization Project, a local waterway restoration program. Wisconsin communities have raised specific concerns about Great Lakes water protection; the closed-loop design removes the need to draw from those resources at any point during operations.
Saline Township, Michigan: Three-quarters of the 672-acre site remains as farmland, wetlands, and open space. Oracle positioned data center buildings below road level with natural buffers from trees and landscaping to reduce visual impact on neighboring properties. Sensor-controlled, downward-facing lighting cuts light pollution while meeting safety requirements. Noise at the property line measures just 55 decibels, roughly equivalent to a normal conversation. New stormwater management systems will reduce runoff into the Saline River to levels below current pre-development conditions.
Doña Ana County, New Mexico: Drinking water scarcity is acute here, and community concerns are direct. Oracle addressed this at the engineering level: the one-time system fill uses non-potable water drawn from existing commercial water rights, not from any community drinking water source. Oracle has also committed $50 million to modernize Doña Ana County’s water infrastructure, an investment that benefits the broader community regardless of the data center’s operational requirements.
Abilene, Texas: The Texas site draws on surplus wind energy from the local grid. Abilene is among the windiest cities in the US, and significant renewable capacity on the local grid frequently goes unused due to low demand. Oracle’s facility absorbs that surplus, reducing grid waste and operating on clean energy from day one.
Land Design as a Measurable Commitment, Not a Compliance Minimum
The land decisions Oracle is making at each site exceed standard permitting requirements. At Saline Township, placing buildings below road grade, paired with setbacks and natural vegetation buffers, reduces the facility’s visual footprint on adjacent properties. That is a detail that matters to residents living near these sites even when it does not appear in earnings calls.
WRI data from February 2026 shows the average US data center site grew 144% between 2022 and 2024, with hyperscale campuses now exceeding 1,000 acres in some cases. That scale creates direct friction with agricultural and rural land use, a tension documented specifically in Ohio, Indiana, Virginia, and Wisconsin. More than $64 billion in projects faced delay or cancellation between May 2024 and March 2025 because of organized local resistance, a figure that reflects how seriously communities are taking these decisions.
Protecting 172 acres at Port Washington, keeping three-quarters of Saline Township as open land, and funding local waterway restoration shape how Oracle is perceived for the full operational life of each facility, which typically spans 30 years or more.
Oracle Funds Its Own Grid Upgrades
Oracle’s AI data centers require substantial electrical infrastructure investment. The company has committed to paying for all grid upgrades needed to serve its campuses, with no costs passed to local ratepayers. That commitment responds to a documented and growing national problem.
WRI analysis from February 2026 reports that Americans paid nearly 10% more for electricity in 2025 compared to 2024, with total utility rate increases surpassing $60 billion nationally. Evidence links data center-driven infrastructure costs to residential rate increases in at least some regional markets. Oracle’s self-funded infrastructure model removes that exposure for communities hosting its facilities.
In Abilene, the energy model goes a step further. Rather than adding load that strains the local grid, Oracle’s facility absorbs low-cost wind capacity that would otherwise go to waste. That positions the facility as a grid stabilizer in the local renewable energy market, not an additional burden.
Frequently Asked Questions (FAQs)
Does Oracle use local drinking water to cool its AI data centers?
No. Oracle’s direct-to-chip closed-loop systems require a one-time fill at startup, then recirculate that fluid continuously. In New Mexico, even the initial fill uses non-potable water from existing commercial water rights. Daily water use after startup is limited to standard office needs such as restrooms and kitchens, comparable to a typical office building.
What is direct-to-chip closed-loop cooling and how does it differ from conventional cooling?
It is a sealed system where coolant circulates directly to server processors, absorbs heat at the source, and releases that heat through radiator-style coils to outdoor air before recirculating. Unlike evaporative systems, which consume water continuously, the closed loop requires no fresh water replenishment during normal operations. The Uptime Institute estimates conventional evaporative systems consume millions of gallons per year per megawatt of IT load.
How much water does a typical large data center use daily?
A typical large data center can consume up to 5 million gallons of water per day, equivalent to the daily needs of a town of up to 50,000 residents. Oracle’s closed-loop design reduces ongoing potable water use for cooling to effectively zero, with daily consumption equating to that of a standard office building.
How loud are Oracle’s data centers at property boundaries?
At the Saline Township, Michigan site, noise at the property line registers 55 decibels, approximately the volume of a normal conversation. Oracle also uses sensor-controlled, downward-facing lighting to reduce light pollution, combined with tree buffers and building setbacks to minimize sensory impact on neighboring properties.
What land has Oracle committed to preserve at its Wisconsin and Michigan sites?
At Port Washington, Wisconsin, Oracle is preserving or enhancing 172 of 672 total acres, planting more than 2,000 native trees, and co-funding the Valley Creek Corridor Revitalization Project. At Saline Township, Michigan, three-quarters of the site remains as farmland, wetlands, and open space, with buildings placed below road level to reduce visual impact on the surrounding area.
Why are communities increasingly opposing new data center projects?
Opposition reflects documented resource pressures. Two-thirds of data centers built or planned since 2022 are in water-stressed regions, and a single modern AI data center can use as much electricity as 100,000 homes. More than $64 billion in data center projects were delayed or canceled between May 2024 and March 2025 due to organized community resistance.
What community investments is Oracle making beyond the data center itself?
Oracle has committed $50 million to modernize Doña Ana County, New Mexico’s water system, independent of the data center’s operational needs. In Wisconsin, the company co-funds the Valley Creek Corridor Revitalization Project to restore local waterways. Each site also generates construction employment, permanent operations roles, and sustained property tax revenue for local governments.
How does Oracle handle energy costs for communities near its data centers?
Oracle funds all electrical infrastructure upgrades needed to serve its campuses directly. Ratepayers bear none of those costs. In Abilene, Texas, the facility uses surplus wind energy from the local grid, consuming renewable capacity that would otherwise go to waste, which helps stabilize local grid operations.
