A data center linked to AI and bitcoin mining operations in El Reno, Oklahoma, lost more than 3 million gallons of water after a private water line failed, according to local news reports, raising fresh concerns about water-intensive data centers amid one of the worst droughts the state has seen since 2022. The leak, which city officials traced to a privately owned fire hydrant connected to a water line on the property, caused a dramatic drop in local water pressure and disrupted services across the community. El Reno officials said residents and businesses experienced low water pressure, while schools, government offices and other facilities were forced to close temporarily as crews worked to stabilize the system.
According to Canadian County property records, cited by local outlet KOCO 5 News, the site is owned by Athlon BT, a company that develops mobile data centers designed for AI storage and bitcoin mining. The facilities use containerized systems equipped with air- and water-cooling technology. Newsweek has contacted Athlon BT for comment via email.
El Reno officials said a damaged private water line connected to a fire hydrant on the property leaked more than 3 million gallons before the source was identified and isolated. The loss was significant enough to strain the city's water system and force emergency conservation measures. Residents, however, were reassured that they would not bear the financial burden.
"The citizens of the City of El Reno can be assured that none of the costs related to the water leak at the property will be passed along to our citizens," interim City Manager Ken Brown said in a statement, adding that the city's legal team was on standby, "preparing to take the necessary legal actions to recoup all costs and expenses related to the water leak from the property owner." Newsweek has contacted Brown's office for comment via email. According to a statement the city released, construction began on the facility after a building permit was issued in 2021. However, El Reno issued a stop-work order in June 2023 after identifying multiple fire and life-safety code violations and permit issues.
Brown said city officials believe the facility may have continued construction and potentially begun operating despite lacking a certificate of occupancy, though he noted that claim remained under investigation. Following the leak, the city condemned the property, arguing that the water line failure and other conditions presented "a hazard to the health, safety, and welfare of the community." "As this incident has demonstrated, failure to follow the City's directives and its Code of Ordinances can have catastrophic consequences," Brown said. The incident comes as drought conditions worsen across Oklahoma.
Drought Monitor shows 100 percent of Oklahoma experiencing drought conditions, with large portions of the state categorized as seeing severe, extreme or exceptional drought. Data released on August 27 showed substantial areas of western and central Oklahoma falling into the two most serious drought categories. The Oklahoma Water Resources Bulletin reported that the state received 21 percent of normal rainfall during the previous 30-day period, making August among the driest on record in several regions.
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