Geothermal energy is drawing attention as a clean power source for the data center boom in the American West. But according to Grist, the resource comes with a catch: it sits beneath the desert, and tapping it requires water.

That creates a difficult tradeoff for developers. The same arid conditions that make the region attractive for solar and geothermal development also make water a scarce and contested resource. As data centers multiply, so does the pressure on both electricity and water supplies.

The Grist report frames this as a tension between two environmental priorities: reducing fossil fuel use and protecting limited water resources. It does not suggest an easy resolution, only that geothermal companies will need to navigate these competing demands as they expand.