California's largest AI data center project sues for 287 million gallons of Colorado River water access, equivalent to 160-acre farm demand amid regional scarcity.
Imperial Valley Computer Manufacturing has filed a lawsuit against the Imperial Irrigation District to secure access to Colorado River water for cooling a 330-megawatt data center project—set to be California's largest. The company is seeking approximately 287 million gallons of water annually, equivalent to roughly 750,000 gallons per day or 880 acre-feet per year.
The legal challenge emerged after two local cities—El Centro and Imperial—declined to provide reclaimed wastewater for cooling the facility, and the Imperial Irrigation District also denied the company's request. Originally, the data center was designed with a commitment not to use Colorado River water, contingent on receiving recycled wastewater from the cities. That agreement has now broken down.
Despite the large absolute figure, the requested water represents only 0.028% of the Imperial Irrigation District's total annual allocation of approximately 3.1 million acre-feet from the Colorado River. The Colorado River supplies water to roughly 40 million people across seven western states and serves as the valley's sole freshwater source for approximately 180,000 residents. Agriculture consumes about 80% of California's Colorado River allocation, with 95–97% of water distributed by the Imperial Irrigation District going to agricultural use.
Sebastian Rucci, a Huntington Beach attorney leading the project, argues that the facility's water consumption would be comparable to a 160-acre farm and would not increase pressure on the river. His strategy pivots on the company's intention to purchase nearby farmland along with its associated water allocations. Under this approach, irrigation on those properties would cease, redirecting existing water quotas to data center cooling in place of agricultural production.
This "buy and dry" strategy has prompted significant local resistance. While water policy specialists acknowledge that the volume represents only a small fraction of regional supply, they emphasize that the debate centers on a deeper concern: whether converting irrigated farmland into industrial use represents an appropriate long-term direction for a region historically dependent on farming. The loss of agricultural activity would affect not only direct farming employment but also ancillary industries including equipment suppliers, repair shops, and fertilizer retailers.
The company projects substantial economic benefits, including 1,688 construction jobs, more than 100 permanent positions, and an estimated $2.95 billion in economic impact over 30 years. For a region where unemployment stood at approximately 17% in May, economic diversification is significant. However, experts question whether 100 permanent positions could adequately offset job losses across farming and agricultural industries. Additionally, the Imperial Valley and Yuma, Arizona region supply critical agricultural products to the nation during winter months—a factor that complicates the long-term implications of converting productive farmland.