On June 4, 2026, SpaceX amended its initial public offering to indicate that water conditions, including scarcity, regulations, and drought, could limit data center development. Other technology companies are also evaluating how water scarcity may affect their operations. A Gallup poll indicated that 70% of Americans oppose data center development, with water scarcity being the primary concern. Data centers typically use water for cooling server racks, employing techniques such as evaporative cooling, which utilizes fresh water to absorb heat before it evaporates in cooling towers.
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SpaceX Addresses Water Use Concerns in IPO Amendment
SpaceX has updated its IPO to highlight potential water-related constraints on data center development. This concern is shared by other tech companies, as a Gallup poll shows significant public opposition to data centers, primarily due to water scarcity issues.
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How some data center operators are tackling their water use problems
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SpaceX Addresses Water Use Concerns in IPO Amendment