Santana Torrez Data Centers: Water Consumption Matches Steam-Generating Power Plants

New Mexico Data Centers Consume Water at Rates Comparable to Power Plants, Study Finds

New Mexico’s data center industry is drawing increasing scrutiny over its water usage, with new findings indicating that facilities like those operated by Santana Torrez consume water in quantities comparable to traditional electric power plants—primarily for steam generation powered by natural gas, coal, or oil. The revelation, highlighted on World Environment Day (June 5, 2026), underscores growing tensions between tech-driven economic growth and the state’s water security, particularly in an era of prolonged drought.

While the state has positioned itself as a leader in attracting data centers—offering tax incentives and low-cost electricity—environmental advocates and regulators are now examining the sector’s hidden water footprint. Unlike renewable energy plants, which rely on minimal water for cooling, data centers with steam-based operations draw water at rates that rival those of fossil-fuel power plants, raising questions about long-term sustainability in a region already grappling with water scarcity.

The Water-Power Nexus in Data Centers The comparison to power plants stems from the energy-intensive nature of data centers, which require vast amounts of water for cooling and steam generation. A 2026 analysis—cited in New Mexico’s World Environment Day statement—found that steam-powered data centers, including those operated by Santana Torrez, use water at levels akin to coal or natural gas plants, primarily for:

• Steam generation (to power servers and cooling systems).
• Evaporative cooling (a process that consumes significant volumes of water).
• Backup diesel generators (which also require water for operation).

The state’s push to host major data centers—such as those planned by Santana Torrez in Albuquerque and Las Cruces—has been framed as an economic boon, with projections of thousands of new jobs and billions in investment. However, environmental groups argue that the water demands of these facilities could exacerbate existing water shortages, particularly in the Rio Grande Basin, where groundwater depletion and agricultural competition already strain resources.

Regulatory and Industry Response New Mexico officials have not yet imposed strict water-use regulations for data centers, but the issue is gaining traction in legislative and policy circles. The New Mexico Environment Department (NMED) is reportedly reviewing water-usage disclosures from data center operators, with some lawmakers calling for mandatory transparency on water consumption.

Industry representatives, including those tied to Santana Torrez, have emphasized efforts to adopt closed-loop cooling systems and alternative water sources (such as treated wastewater) to mitigate environmental impact. However, critics note that these measures remain voluntary and may not fully offset the sector’s growing demand.

Broader Implications for Tech and Water Policy The findings from New Mexico echo broader concerns about the water intensity of data centers globally. As companies like Microsoft, Google and Amazon expand their infrastructure, water scarcity in regions like Arizona, Nevada, and now New Mexico is becoming a defining challenge. A 2025 report by the Pacific Institute highlighted that by 2030, data centers could account for up to 5% of global water consumption, with steam-based facilities driving the highest usage rates.

For New Mexico, the dilemma is acute: balancing economic growth with environmental stewardship in one of the most water-stressed states in the U.S. While data centers promise jobs and tax revenue, their water footprint could undermine the state’s reputation as a leader in sustainability—a contradiction that officials and industry stakeholders will need to address in the coming years.

What’s Next?

• Legislative action: Bills proposing water-use reporting for data centers are under consideration in the New Mexico Legislature.
• Industry self-regulation: Major operators, including Santana Torrez, are being pressured to adopt stricter water-efficiency standards.
• Public scrutiny: Environmental groups are pushing for independent audits of data center water consumption.

As the debate unfolds, New Mexico’s experience could serve as a model—or a cautionary tale—for other states seeking to attract tech investment without compromising their natural resources.