Imperial County pauses AI data centers as developer sues for Colorado River water

Key Takeaways

Imperial County approved a 45-day moratorium on new data center projects in June.
Developer Imperial Valley Computer Manufacturing is suing for about 880 acre-feet per year from the Colorado River.
The proposed complex is 330 megawatts and billed as California’s largest AI data center.
The company had previously pointed to recycled wastewater instead of river water.

Eight hundred eighty acre-feet. That’s the cooling water a developer says it needs each year to run a planned AI data center outside Imperial. The county’s Board of Supervisors voted to hit pause for at least 45 days, citing questions about energy demand, water use, and public health. Hard stop.

The fight matters up here in the Valley because it tests whether industrial projects can claim water that’s historically gone to fields. If that argument sticks in court there, growers and districts in places like western Fresno County will pay attention, since outside demand tends to travel Highway 99 sooner or later.

How much water, and from where

Imperial Valley Computer Manufacturing, or IVCM, wants roughly 880 acre-feet a year from the Colorado River, which pencils to about 287 million gallons. The Imperial Irrigation District denied the request on May 1. IVCM sued, arguing it can offset the draw by fallowing nearby farmland with similar historical use and shifting the saved water to the data center. The company’s filings say that swap means no net increase. IID says no.

Earlier in the process the developer talked up using recycled wastewater from nearby cities rather than tapping the river. Those cities didn’t commit, according to local reporting, and the plan shifted to a legal push for river supply.

What the project is

On paper, the campus runs 330 megawatts and would be the biggest AI-focused facility in the state, a million square feet near the city of Imperial. It’s built for high-density compute, which means big cooling loads, which is why the water numbers sit at the center of the dispute. County supervisors put a time-out in place while they study rules for siting, air quality, and infrastructure. The moratorium can be extended under state law.

The case reaches past one site. Data center builders across the West are chasing power interconnections and water sources at the same time, which has led to talk of so-called buy and dry arrangements, where irrigated acreage is taken out of production and its water is steered to industry. That’s the crux of IVCM’s argument. A court will decide whether a farm-to-server transfer fits IID’s service rules and the region’s long-standing water rights.

Why the Valley should care

We’re not on the Colorado, but our math isn’t that different. Westlands Water District and Turlock Irrigation District guard agricultural supply for permanent plantings and row crops, and they’ll be asked to weigh new industrial draws as AI campuses scout for sites along existing transmission north of Bakersfield and around Tracy. Even if the first big battles land elsewhere, the precedent on farm allocation and recycled-water commitments would shape any proposal that shows up in Fresno or Kern. That’s why this one isn’t just an Imperial County story.

An orange Fanta can sat on a staff table at the last hearing, sweating under the lights.

Central Valley AI is produced by the CVAI Agriculture Desk team and developed by Kaweah Tech, a regional firm that builds, deploys, and integrates AI solutions for businesses across California's Central Valley.

Source

https://www.yahoo.com/news/us/articles/california-hits-pause-could-biggest-031900686.html