In Fayette County, Georgia, a massive data center project quietly consumed nearly 30 million gallons of municipal water over 15 months, equivalent to about 44 Olympic-sized swimming pools, before residents noticed dropping water pressure in their taps. The issue came to light last week when homeowners in a nearby subdivision complained, prompting county officials to investigate. They discovered two unaccounted-for water connections linked to the QTS Fayetteville campus—known as "Project Excalibur"—a sprawling development 20 miles south of Atlanta comprising 13 buildings totaling 6.2 million square feet, with plans for up to 16 at full buildout.
The data center's developer, Quality Technology Services (QTS), owned by the private equity firm Blackstone, now owes the county utility nearly $150,000 for the excess usage, which far exceeded the peak limits agreed upon during planning. According to reports from Politico and detailed in Slashdot coverage, the connections slipped through because the county was transitioning to a cloud-based system while accommodating the industrial customer, leaving the small utility staff overwhelmed and unaware. QTS maintains that the high consumption stemmed from temporary construction activities, such as concrete pouring, dust control, and site preparation, rather than operational cooling needs.
This incident unfolded amid broader strains on Georgia's water resources. The state, home to over 200 data centers, is grappling with moderate to high drought levels, exacerbated by one of its worst wildfire outbreaks in years—prompting Governor Brian Kemp to declare a state of emergency last month. At the time, local officials were urging residents to conserve water, including restrictions on lawn watering, which fueled outrage when the data center's role emerged. Residents like local advocate Tigert, who obtained a May 2025 utility letter to QTS via public records request, highlighted the frustration, as the facility's draw went unnoticed in utility reporting.
QTS emphasizes that its operational data centers employ a "closed-loop" cooling system, which recirculates water without drawing from municipal supplies for cooling servers—a critical need to prevent overheating of chips powering AI and other high-demand computing. Once fully operational, expected in three to five years after starting construction in 2023 with up to $1 billion in investment, the campus will use water only for domestic purposes like bathrooms and kitchens, roughly equivalent to four U.S. households per month, the company states.
The episode underscores growing tensions over data centers' resource demands, particularly as AI expansion accelerates water use nationwide. Most cities classify these facilities like commercial office buildings, lacking separate reporting requirements that could flag such spikes early. A University of California Riverside study projects global data center water consumption could reach 6.6 billion cubic meters by the end of this year—about half of the UK's annual total—highlighting risks in drought-prone areas. In Georgia, this has turned data centers into a political flashpoint, with calls for better oversight to balance tech growth against community needs.
Local officials and residents are now pushing for improved monitoring and transparency in water hookups for industrial projects. Fayette County has billed QTS and is reviewing its processes, but the case raises questions about how similar facilities elsewhere might strain supplies unnoticed. As data center booms continue, especially for power-hungry AI, communities in water-stressed regions face mounting pressure to enforce limits and disclosures.