Data centers require massive volumes of water to operate, and the growing use of artificial intelligence means more of these centers are popping up in water-abundant regions such as the Great Lakes. However, despite their access to the vast bodies of water, not all communities in or near the Great Lakes basin have the capacity to sustainably support this industry, experts say.

A recent report warns the region is not prepared for the unprecedented, growing demand from data centers and other water-heavy users — which, if not addressed, could lead to shortages and conflict. The report also points to agriculture as a growing stressor.

Every Great Lakes state has passed tax incentive legislation to encourage data centers to locate there. But these incentives are not “reflective of where wate

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