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County staff and engineers say data centers increasingly use air-cooled systems; water sourcing and reporting remain key concerns

Jefferson County Economic Development Objectives Committee · December 3, 2025
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Summary

Technical experts told the committee that most modern data centers favor closed-loop air-cooled systems that use little makeup water, but when water cooling is proposed developers must demonstrate source capacity, hydrological testing and commitments not to harm private wells; staff proposed annual reporting and telemetry for large users.

Olsen water and mechanical experts told the committee that the prevailing industry trend is toward air‑cooled, closed‑loop systems that use little to no makeup water for cooling. Lauren Stanton, a water/wastewater engineer with Olsen, said site due diligence includes reviewing existing infrastructure, capital improvement plans, source capacity and potential upgrades in collaboration with utilities and water districts.

Brad Hutchins said water-cooled sites still exist and, when used, typically require treatment, blowdown and coordination with treatment plants. He said closed-loop systems reduce routine makeup water needs and that makeup water is often needed only to replace evaporation or in the event of leaks. Mitch Baer reported that a neighboring jurisdiction’s older facility used about "500,000 gallons per day" on city water but that newer systems are closed-loop with only about "5% to 10%" makeup water for evaporation, based on his discussion with officials in that jurisdiction.

Regulatory proposals discussed included: requiring demonstration that projected demands do not exceed utility or district capacity; requiring verification from the water district; hydrologic testing and proof that groundwater use will not impair surrounding wells; identifying primary and secondary water sources (municipal, groundwater, industrial); requiring best management practices (recirculation, leak detection, reuse); and, for large users, requiring real-time telemetry and annual transparent reporting of total gallons used and water‑use intensity metrics.

Committee members asked who would be responsible to expand infrastructure if capacity is insufficient; Baer said staff will draft language that would place the cost of capacity increases on developers where appropriate. The committee also discussed prohibiting use of private well water for cooling in some areas and the need to evaluate state statutes such as the recently passed SB 4 to understand capacity and permitting constraints.

Ending: Staff will detail reporting metrics, thresholds that trigger telemetry, and developer responsibilities for infrastructure upgrades in the draft language returned to the committee.