Reporter: Bridget Bruchalski
•6/25/2026
ARCADIA, Fla. (WINK) — A proposed artificial intelligence data center in DeSoto County is raising questions among residents and environmental advocates who worry about its potential impact on local water supplies amid a drought and historically low river levels.
The proposed facility, backed by developer DCIP Group, is still in the planning stages. While company representatives say the project would rely primarily on reclaimed wastewater, stormwater collection, and a closed-loop cooling system designed to reduce water consumption, some residents remain skeptical about how much water the center could ultimately require.
Those concerns are heightened by current conditions along the Peace River.
"It's so low right now, it's literally record-breaking low," said Arcadia resident Josi Bickers.
Other residents echoed similar concerns.
"We're already low. We can't really afford to lose any more water," said Caroline Zeller, who works at Arcadia Campgrounds.
At public meetings and in interviews with WINK News, DCIP representatives have emphasized that the proposed facility would use a closed-loop cooling system, which recirculates water rather than continuously discharging and replacing it.
"Modern data centers use a closed-loop system for cooling," a DCIP representative said during a public meeting. "Closed-loop systems decrease water consumption by more than 90% of former cooling systems."
DCIP spokesperson Erica Robinson compared the system to a vehicle radiator.
"The closed-loop system is similar to the radiator in your car. It is filled, and it runs continuously," Robinson said. "It reduces the amount of water by at least 90%."
According to DCIP, the company is pursuing an agreement with the City of Arcadia to use reclaimed wastewater as its primary water source. Stormwater collection would serve as a backup source, while groundwater would be used only if necessary.
"We are pursuing the use of the city's reclaimed wastewater as our primary water source," Robinson said during the meeting.
Robinson said the company is also exploring fuel-cell technology that could generate water as a byproduct.
"There are multiple strategies," she said.
However, some residents question whether stormwater and rainfall can reliably support a large-scale facility during Florida's dry season.
"It's not even raining, and when it does rain, we need that water," Bickers said.
Andy Mele, a board member with Peace Myakka Waterkeeper, said a closed-loop system may reduce water demand but does not eliminate the need for a water source.
"You still have to get your water from someplace," Mele said.
Mele said he is particularly concerned about the possibility of future groundwater withdrawals from the Floridan Aquifer, which supplies drinking water to much of Florida.
"The Floridan Aquifer is the main source of our potable water," he said.
He also questioned whether rainwater collection alone could support the facility's needs.
"The idea of getting enough rainwater to run that stuff is just absurd," Mele said.
While closed-loop systems reuse water, Mele noted they still require maintenance and eventual replacement of water within the system.
"It just means they can reuse it and reuse it and reuse it," he said. "Eventually it'll get contaminated, and they'll have to find a way to dispose of it."
Mele warned that significant groundwater withdrawals could potentially affect nearby wells and aquifer levels.
"It could impair people's drinking water wells," he said.
At this stage, DCIP has not publicly released specific estimates for how much water the proposed facility would consume daily, monthly, or annually. Robinson said studies examining water demand and other impacts are still underway.
"They're still in the study space, so I don't have anything to share about that at this point," Robinson said.
As the proposal continues through the approval process, water availability remains a central issue for residents evaluating the project's potential benefits and environmental impacts.
"I know it will bring jobs, and it's a good thing," Zeller said. "But yet it's going to use our water."
