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Report Warns Data Centers Pose Hidden Water Risk Through Energy Consumption

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A new report by Ceres highlights an often-overlooked environmental risk linked to data centers: their indirect water consumption through power generation. While data centers are frequently scrutinized for their direct water use in cooling systems, the report focuses on the water required by power plants that supply their electricity. This hidden water footprint is described as a significant and underappreciated strain on freshwater resources. The findings call on investors and companies to better account for water risks embedded in data center energy supply chains.

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