Environment & land
Imperial Valley AI data center developer, after pledging not to touch the Colorado River, sues local water district for 260 million gallons a year
Confidence: Corroborated · 3 sourcesImperial County · Sep 21, 2026
Subject of this story
Imperial Valley Computer Manufacturing (Sebastian Rucci)
Also named
Affected
Imperial Irrigation District
What happened
Imperial Valley Computer Manufacturing (IVCM), developer of a roughly $10 billion, ~330 MW AI data center campus in California's Imperial Valley, repeatedly promised the project would rely on recycled wastewater and would not draw from the Colorado River. After recycled-water deals with the cities of El Centro and Imperial collapsed, IVCM sued the Imperial Irrigation District in June 2026 for about 260 million gallons of river water per year (roughly what 7,300 county residents use annually), offering to leave 160 acres of leased farmland fallow in exchange. Imperial County has since moved toward an emergency moratorium on new data center development.
Sources (3)
KPBSConfirms the lawsuit, the 260 million gallon/880 acre-foot figure, the prior recycled-water pledge including the direct quote 'does not touch a single drop of the Colorado River,' and the collapse of the El Centro/Imperial deals.
Tom's HardwareIndependent corroboration of the water volume and the 160-acre farmland tradeoff, from a technology-industry outlet.
Western WaterIndependent water-policy journalism confirming the case is headed to Imperial County court.
Response
Imperial Valley Computer Manufacturing (Sebastian Rucci)
Not yet contacted
Not yet contacted for this story.
What happened next (0)
No outcome recorded yet.