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Amid ongoing concerns about the Colorado River, it is understandable that Arizonans would ask hard questions about water use from new industries, including data centers. Under different scenarios, the Central Arizona Water Conservation District has estimated reductions between 20 and 57 percent to municipal water entitlements, which could require some cities to rely on alternative supplies or banked water savings reserves.

But the fear of shortages shouldn’t stop state and local officials from viewing growth in context with the broader water picture. Our state has some of the toughest water laws in the nation. Arizona鈥檚 water managers are among the best in the country, and remarkably, Arizona uses less water today than it did in the 1950s, despite a population that has grown sevenfold and an economy that has expanded dramatically.

That record should give us confidence, not fear.

Given our strong track record for conservation, Arizona should continue welcoming responsible businesses, especially those with a demonstrated commitment to water conservation and stewardship. That includes data centers, which are becoming as essential to modern life as power lines, water systems, and fiber-optic networks.

Just as important, many modern data centers are being designed with water efficiency in mind.

Many hyperscale facilities use closed-loop cooling systems that require a one-time initial water fill and then use only minimal additional water beyond domestic needs. Others rely on dry cooling or similarly advanced methods that greatly reduce or eliminate traditional evaporative water use.

Arizona is already seeing this shift in practice.

CyrusOne uses air cooling and a closed-loop system at its Chandler campus, which largely eliminates ongoing evaporative water demand after the initial fill.

Google uses advanced dry-cooling technology at its Mesa data center to reduce long-term water use.

Meta uses a closed-loop, multi-pass system at its Mesa facility to recycle and recirculate water before discharge.

These examples make an important point: data center operators are not ignoring Arizona鈥檚 water realities. They are adapting to them.

That is not surprising. As the has noted, data centers have strong economic incentives to improve operational efficiency in both energy and water use. Conservation is not just good stewardship. It is also smart business. Data centers also provide critical revenues that are necessary to help fund the next tranche of major water conservation investments.

The construction of new digital infrastructure requires millions of dollars in new capital investment, which translates to assessed value, jobs, and secondary impacts that increase state and local revenues. A single 250 megawatt data center, for example, brings in nearly $45 million in annual real and business property taxes and pays over $15 million in sales taxes on its annual electric bill alone.

Arizona should absolutely position itself to take advantage of this investment and use it to fund the future water infrastructure projects for this state. No additional fees or surcharges are required.

Although the uncertainty on the Colorado River is real, our state鈥檚 largest cities and towns have the water they need to accommodate future growth, and they should continue to attract the latest and most cutting-edge industries to our state, especially those like data centers that are adopting the latest technology in water-efficient infrastructure.

Arizona has never succeeded by retreating from the future. Our state has long embraced innovation, growth, and responsible stewardship of limited resources. The next era of economic development will depend on technological infrastructure, and data centers will be part of that future.

Economic growth, technological advancement, and water stewardship do not have to be in conflict. Arizona can and should lead on all three.

Michael Carbone is a Republican member of the Arizona House of Representatives representing Legislative District 25 and serves as House Majority Leader. Follow him on X at @MichaelCarbone. Justin Wilmeth is a Republican member of the Arizona House of Representatives serving Legislative District 2 in North Phoenix and is Chairman of the House Committee on Artificial Intelligence & Innovation. Follow him on X at @JustinWilmethAZ.