Summary: A planned 330 MW data center in Imperial Valley, California, was denied fresh and wastewater access by the Imperial Irrigation District and the developer has responded with a lawsuit. The project would need about 287 million gallons of water; the developer compares that use to a 160-acre farm and promises local economic benefits. Critics warn the plan would reallocate water from agriculture in a region where farming already consumes nearly 80% of allocated water, and the dispute comes amid broader concerns over the Colorado River’s long-term stress.
Planned 330 MW California Data Center Denied Colorado River Water — Developer Sues

A dispute over scarce water resources has erupted in Imperial Valley, California, after the region’s public water agency refused a developer’s request to use fresh and wastewater to cool a proposed data center. The developer, Imperial Valley Computer Manufacturing, has filed a lawsuit after the Imperial Irrigation District denied access to district supplies for the project.
Project Size and Water Demand
The proposed facility is planned as a 330 MW complex and is estimated to require about 287 million gallons of water for cooling. Developer Sebastian Rucci says the center would bring jobs and economic activity to the area and has compared its annual water use to that of a 160-acre farm.
Why Residents and Officials Object
Critics — including local farmers and community members — argue the project would effectively reallocate water away from agriculture and rural users in a region that already devotes the bulk of its allocation to farming. In Imperial Valley, agriculture accounts for nearly 80% of the region’s allocated water, and opponents worry an additional 287 million gallons would further strain a water system already stressed by drought.
The lawsuit contends the Imperial Irrigation District provided “no rational basis” for denying an industrial user the ability to combine and reallocate water rights while allowing similar flexibility for agricultural users.
Broader Context
The Colorado River supplies water to roughly 40 million people across seven U.S. states and has been under long-term pressure from prolonged drought and overuse. The Imperial Valley sits at the intersection of those pressures, making any large new water demand politically and environmentally sensitive.
Public concern about data center water use has been amplified by earlier incidents and statistics. Reports have cited cases such as an Amazon data center using up to 2.5 billion gallons in one year and a construction-related contamination incident at a Meta site in Cheyenne, Wyoming. Those examples have contributed to broader worries about the environmental footprint and infrastructure impacts of large-scale data facilities.
What Happens Next
The developer’s lawsuit likely sets up a legal battle over how the Imperial Irrigation District interprets and applies water-allocation rules between agricultural and industrial users. Local residents have broadly supported a moratorium on new data center construction while water availability and allocation are being debated. The case could become an important test of how communities balance economic development against limited water resources in a warming, water-scarce West.
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