AI data center sues for Colorado River water

Imperial Valley Computer Manufacturing, the developer of United States — California's largest planned AI data center in the United States — Imperial, California Valley, filed a lawsuit in June 2026 seeking access to 287 million gallons of United States — Colorado water annually for cooling. The company had earlier promised not to use river water, planning instead to use recycled wastewater from the cities of United States — El Centro, California and United States — Imperial, California, but both cities rejected the proposal. The United States — Imperial Irrigation District, which manages United States — Colorado water in the region, also denied the company's request. The developer, Sebastian Rice, argues the project would have 'zero impact' because it would stop irrigating 160 acres of farmland and redirect that water to the data center. Critics, including water experts and local advocates, worry about the precedent of converting farmland to industrial use and the potential loss of agricultural jobs. The project is expected to create 1,688 construction jobs and over 100 permanent jobs, with an estimated $2.95 billion economic impact over 30 years. United States — Imperial County, California has imposed a temporary moratorium on new data center projects while reviewing its rules.