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Vanderbilt Journal of Entertainment & Technology Law

First Page

795

Abstract

The rise of generative artificial intelligence (AI) has fueled a global race to construct increasingly powerful supercomputers and data centers. Yet, the legal infrastructure meant to regulate these water-intensive projects remains dangerously underdeveloped. Current water law principles in prior appropriation states only further exacerbate this concern. This Note suggests that reform of water law principles can provide a framework for regulating AI data centers’ water consumption in order to protect societal interests during the global AI race. While data centers present beneficial technological advancements, their lack of transparency regarding water consumption presents concerns for local communities suffering from the numerous negative externalities presented by data center facilities. Given that state regulation has yet to properly address concerns presented by these local communities, water law may be able to offer a solution if strengthened. To demonstrate water law’s weak protection of this critical resource, this Note analyzes the goals of prior appropriation law, its main principles, and where data centers fit into this framework. This Note proposes a legal framework based on the purpose of prior appropriation law in order to regulate AI infrastructure. States following the prior appropriation doctrine will be highlighted since these states are generally those facing severe droughts. Through this framework, it will be demonstrated that the priority of use principle is misaligned, and the beneficial use principle should be the central theme of prior appropriation law, and the establishment of a proper water right. As AI accelerates and environmental harms concentrate in historically marginalized areas, the time has come to adapt the logic of natural resource law to the digital age. To do so, this Note will argue that prior appropriation law (1) must be recentralized with its original purpose of promoting efficient beneficial use; and (2) must assert transparency of consumption as a critical factor in order to reflect the belief that water is a public resource owned by the state rather than individuals. These reformed water law principles provide courts with a proper framework that prioritizes such a limited and critical natural resource. This analysis can also serve as a deterrent for further oppression communities will face due to the race to develop smarter AI tools.

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