Data centers have long been the subject of criticism, especially from environmentalists and those worried about water consumption.
But Creekstone Energy — an AI infrastructure developer — is trying to change that.
On Wednesday, the company announced a patent-pending technology that turns natural gas into water. The process — named Gigawater — is the centerpiece of Creekstone's Project Oasis initiative at the Delta Gigasite in Millard County in central Utah, which is currently under construction.
The company said in a press release that natural gas from Wyoming will be transported to Utah for the project.
Ray Conley, founder and CEO of Creekstone Energy, said the principle behind Gigawater "is elegantly simple."
He pointed to cars as an example: "If you've ever been sitting at a stoplight and the car in front of you takes off and you see some water dripping from the tailpipe ... that's actually condensed water in the tailpipe from the combustion process."
The chemistry is real — burning methane produces carbon dioxide and water. The question is whether it can work at scale, and at what environmental cost.
Project Oasis aims to accomplish the feat on a massive scale. To do so, scientists would "take that exhaust tailpipe and run it underground through a very large set of rocks," said Conley. Underneath the rocks is a sort of rubber mat — impermeable to water — that would allow for water to condense and be captured.
"We bring in natural gas and, rather than relying solely on local resources, we generate a new water supply," he continued — emphasizing the project requires no external power sources.
The issue, however, is that it is all theoretical.
Creekstone announced a partnership with the University of Utah. The first phase of the project — including model verification, evaluating the chemistry, thermodynamics and other assumptions — could take as long as a year to complete.
The second phase — conceptual design with an experimental pilot facility — is expected to be completed in the following year.
Creekstone's engineering analysis projects a yield of approximately 4,000 acre-feet of water per year — which the company claims exceeds what the Delta Gigasite itself will ever consume.
"The facility won't just be water-neutral, it will be water-positive," the press release stated. "The recovered water has real-world applications: irrigation and agriculture, geothermal energy cycles, and, after filtration, potentially as a potable source."
But the 4,000 acre-feet of water seems minute when compared to the 11.7 million acre-feet that was the statewide water supply in 2024, according to Utah State University Water Metrics.
"So this data center might produce 1% of the agricultural usage," said Logan Mitchell, a climate scientist and energy analyst with Utah Clean Energy. "It's not 0 — it's a positive number, but it's very close to 0. It's not something that is going to meaningfully change" the state's overall water picture.
Mitchell describes the innovation as one part of a 1,000-piece large, complex data center facility puzzle. "This addresses one of the components, which is great," he said. "But there are many other parts of it that to understand the full picture, you need to understand all the other moving pieces."
One of those moving pieces, he said, is state policy.
Creekstone said Project Oasis is "the latest demonstration of Creekstone's belief that the data center industry and the communities that host it don't have to choose between economic growth and environmental stewardship," but recognizes that simply the technology existing does not mean other data centers will follow suit.
"Utah has been working to make sure data centers are accountable for how they use our water; it's why I sponsored legislation last session to bring greater transparency to that reporting," said Rep. Jill Koford, R-Ogden. "What Creekstone is doing with Project Oasis goes well beyond compliance. This is exactly what it looks like when Utah businesses, our universities, and state leaders work together to meet a challenge head-on. I hope it sets the standard for how the entire industry operates."
Mitchell said leveling the playing field with appropriate legislation is critical to moving the industry forward.
"We built Gigawater because we don't think Utah should have to choose between hosting this industry and protecting its water," Conley said. "We hope it becomes the model for how data centers are built across every arid climate where water is precious."