California AI Data Center’s Water Filing Contains Conflicting Estimates

Imperial Valley Computer Manufacturing's legal filing for an AI data center in California's Imperial Valley contains conflicting water-use estimates, including a miscalculation that 750,000 gallons per day equals 880 acre-feet annually when it actually equals about 840 acre-feet, and two different figures for the water offset from retiring 160 acres of farmland. The developer is suing the Imperial Irrigation District after its water application was rejected, while a one-year county moratorium blocks further data center permits.

California AI Data Center’s Water Filing Contains Conflicting Estimates - Imperial Valley Computer Manufacturing requested 880 acre-feet of water annually, equal to about 286.7 million gallons and 0.028% of IID’s stated 3.1 million-acre-foot entitlement. 1 https://cdn.kpbs.org/f8/15/208c856542c68ced8bb0bcf6836f/imperial-valley-computer-manufacturing-v-imperial-irrigation-district.pdf 2 https://law.justia.com/cases/california/court-of-appeal/2020/d072850.html - The filing also calls 750,000 gallons per day equivalent to 880 acre-feet a year. It is not: that daily rate equals about 274 million gallons, or 840 acre-feet, annually. 1 https://cdn.kpbs.org/f8/15/208c856542c68ced8bb0bcf6836f/imperial-valley-computer-manufacturing-v-imperial-irrigation-district.pdf 2 https://law.justia.com/cases/california/court-of-appeal/2020/d072850.html - The developer alternately values its proposed 160-acre farmland offset at 880 acre-feet and 803.7 acre-feet, leaving its claim of no net increase unresolved. 1 https://cdn.kpbs.org/f8/15/208c856542c68ced8bb0bcf6836f/imperial-valley-computer-manufacturing-v-imperial-irrigation-district.pdf - A one-year county moratorium now blocks further data center permits while the developer litigates the water denial and challenges the development pause. 3 https://inewsource.org/2026/07/14/data-center-moratorium-imperial-county/ The developer behind a proposed 330-megawatt artificial-intelligence data center in California’s Imperial Valley is suing for 880 acre-feet of Colorado River water each year, an amount equal to about 286.7 million gallons. 1 https://cdn.kpbs.org/f8/15/208c856542c68ced8bb0bcf6836f/imperial-valley-computer-manufacturing-v-imperial-irrigation-district.pdf 2 https://law.justia.com/cases/california/court-of-appeal/2020/d072850.html That verifies the rounded 287-million-gallon figure attached to the dispute. But Imperial Valley Computer Manufacturing’s filing contains two significant inconsistencies: 750,000 gallons per day does not equal 880 acre-feet annually, and the company uses two different figures for the water associated with the 160 acres of farmland it proposes to retire. 1 https://cdn.kpbs.org/f8/15/208c856542c68ced8bb0bcf6836f/imperial-valley-computer-manufacturing-v-imperial-irrigation-district.pdf The company’s water figures do not fully reconcile IVCM filed its petition in Imperial County Superior Court on June 5 after the Imperial Irrigation District rejected its industrial water-service application on May 1. The complaint contains eight claims challenging IID’s denial and its rules for parcel eligibility, water transfers, agricultural fallowing, allocation-clearinghouse access and industrial fees. 1 https://cdn.kpbs.org/f8/15/208c856542c68ced8bb0bcf6836f/imperial-valley-computer-manufacturing-v-imperial-irrigation-district.pdf In an April 17 request attached to the complaint, IVCM projected cooling demand of 750,000 gallons per day and described that as equivalent to 880 acre-feet per year. At 365 days of operation, however, 750,000 gallons per day totals 273.75 million gallons, or about 840 acre-feet. A demand of 880 acre-feet would average roughly 785,000 gallons per day. 1 https://cdn.kpbs.org/f8/15/208c856542c68ced8bb0bcf6836f/imperial-valley-computer-manufacturing-v-imperial-irrigation-district.pdf 2 https://law.justia.com/cases/california/court-of-appeal/2020/d072850.html The agricultural comparison also changes within the filing. The April request estimates that the 160-acre parcel uses 5.5 acre-feet per acre, producing an 880-acre-foot offset and, the company says, no net increase in IID demand. But the petition’s requested relief identifies approximately 803.7 acre-feet of conserved water from the same parcel. That lower figure would cover about 91% of an 880-acre-foot request, leaving a difference of 76.3 acre-feet. 1 https://cdn.kpbs.org/f8/15/208c856542c68ced8bb0bcf6836f/imperial-valley-computer-manufacturing-v-imperial-irrigation-district.pdf The filing does not explain the difference between the estimated 880-acre-foot farm use and the 803.7-acre-foot historical apportionment. It therefore supports describing the proposed demand as comparable to this particular 160-acre parcel, but not as definitively equivalent to a typical 160-acre Imperial Valley farm. The lawsuit tests IID’s authority over agricultural-to-industrial shifts IID rejected the application because the proposed data center is within the City of Imperial’s sphere of influence and near municipal water infrastructure, according to the district’s May 1 letter included with the complaint. IVCM argues that the site remains in unincorporated Imperial County and within IID’s service territory, making the district responsible for offering water on equitable terms. 1 https://cdn.kpbs.org/f8/15/208c856542c68ced8bb0bcf6836f/imperial-valley-computer-manufacturing-v-imperial-irrigation-district.pdf The company had previously said the facility would use reclaimed wastewater from Imperial or El Centro rather than Colorado River water. Those negotiations collapsed. The complaint characterizes the IID request as a last resort, while Rucci told KYMA that fallowing the farm would make the project’s impact on the Colorado River zero. 4 https://www.kpbs.org/news/environment/2026/06/15/imperial-valley-data-center-developer-files-lawsuit-seeking-access-to-colorado-river-water 5 https://kyma.com/dsw-living/data-centers/2026/06/19/data-center-developer-sues-iid-for-refusing-water-service-in-imperial-county/ The requested 880 acre-feet is about 0.028% of IID’s stated 3.1 million-acre-foot Colorado River entitlement, which explains the rounded 0.03% comparison. But that denominator is the district’s face-value entitlement, not a measure of water freely available for new local demand. IID also has conservation and transfer commitments, including deliveries to outside agencies. 6 https://www.iid.com/water/water-transportation-system/colorado-river-facilities IVCM’s legal theory relies partly on the 2020 appellate ruling Abatti v. Imperial Irrigation District. That decision found that IID must treat agricultural, municipal and industrial users equitably. It did not give individual landowners a guaranteed historical volume. The court held that landowners possess a right to water service while IID retains discretion to manage and distribute the supply among categories of users. 2 https://law.justia.com/cases/california/court-of-appeal/2020/d072850.html The lawsuit does not seek to increase IID’s Colorado River entitlement. It seeks water service for the data center and access to transfer and fallowing mechanisms the company argues are available to agricultural users. The effect on other allocations will depend on whether IID or the court recognizes 803.7 acre-feet, 880 acre-feet or another amount as the valid conservation credit. A county moratorium has overtaken earlier approvals County records describe a 950,000-square-foot campus on a 75.39-acre project site at Aten and Clark roads, including an electrical substation, battery storage and natural-gas backup generation. County staff classified the proposed use as permissible by right and recommended treating it as ministerial and exempt from review under the California Environmental Quality Act. Supervisors approved a related five-parcel lot merger on April 7. 7 https://imperial.granicus.com/MetaViewer.php?event id=2981&meta id=512596&view id=2 8 https://inewsource.org/2026/04/08/california-data-center-nimby-imperial-county/ That decision did not amount to a completed set of construction approvals. On July 14, county supervisors extended a data center moratorium to one year, preventing the issuance of additional permits while an advisory panel develops zoning and construction recommendations. County counsel said the pause applies to IVCM unless overturned in court. Rucci said the company would challenge the extension. 3 https://inewsource.org/2026/07/14/data-center-moratorium-imperial-county/ IVCM claims the project would produce 1,688 union construction positions, about 100 permanent jobs and $28.7 million in annual tax revenue. 9 https://www.ourimperialvalley.com/imperial-data-center/ 10 The 1,688 figure comes from developer-backed project materials; no underlying employment study or signed project labor agreement was identified in the sources reviewed. CalMatters independently attributed the 100-job and tax estimates to the company rather than presenting them as government projections. 10 https://calmatters.org/newsletter/data-center-imperial-county/ The project has some organized-labor support: inewsource identified Laborers’ International Union of North America Local 1184 among its supporters. Opposition is also substantial. More than 3,400 people had signed a petition against the development by April, with nearby residents demanding environmental review and raising concerns about water, electricity, noise, emissions and proximity to homes and schools. 8 https://inewsource.org/2026/04/08/california-data-center-nimby-imperial-county/ IID has declined to discuss the pending water case. Its public data center guidance says the utility evaluates large projects for water feasibility, system reliability, infrastructure costs and risks to existing customers, and requires developers to fund project-driven upgrades. 11 The project remains blocked by the county moratorium and lacks the IID water approval at issue in the lawsuit. Further sources 1 Imperial Valley Computer Manufacturing v. Imperial Irrigation District, verifie… ↗ https://cdn.kpbs.org/f8/15/208c856542c68ced8bb0bcf6836f/imperial-valley-computer-manufacturing-v-imperial-irrigation-district.pdf 2 Abatti v. Imperial Irrigation District, including the court’s statement that on… ↗ https://law.justia.com/cases/california/court-of-appeal/2020/d072850.html 3 inewsource report on Imperial County’s July 2026 extension of its data center m… ↗ https://inewsource.org/2026/07/14/data-center-moratorium-imperial-county/ 4 KPBS report on the lawsuit and the collapse of proposed reclaimed-water agreeme… ↗ https://www.kpbs.org/news/environment/2026/06/15/imperial-valley-data-center-developer-files-lawsuit-seeking-access-to-colorado-river-water 5 KYMA interview in which Sebastian Rucci said the farmland arrangement would pro… ↗ https://kyma.com/dsw-living/data-centers/2026/06/19/data-center-developer-sues-iid-for-refusing-water-service-in-imperial-county/ 6 IID description of its 3.1 million-acre-foot entitlement and water-transfer obl… ↗ https://www.iid.com/water/water-transportation-system/colorado-river-facilities +5 more The stories that matter, in one email. Free — unsubscribe anytime.