Spartex, water is an ongoing deep concern for southwestern states. Droughts are sporadic, but access to a reliable water supply is always a concern. From a real estate aspect, I have a very good handle on what the issues are. In NM, agricultural use is extremely high, due to the amount of farming in my region. Water use for Ag purposes is metered at the wells and annual allotments are regulated by the NM Office of the State Engineer. They regulate surface water from the Rio Grande River AND ground water that comes from wells.
Regarding Foundries and Datacenters, it is my understanding that on a global level, Fabs and Datacenters recover and reuse roughly 45% of the water they use. In the case of Intel and TSMC, it is my belief that they do/will recover/reuse over 90% of the water they receive in regions like NM and AZ. I hope that is true. The tech industry uses a LOT of water. In my mind, the semiconductor industry in PHX will eclipse what Intel built in ALBQ a few decades ago.
Then there is the energy topic. I shared an article a few months ago regarding deep concerns about Datacenters being built in Loudon County, VA. Virginia has concerns that they don't have enough energy available to feed the wave that is coming.
On the bright side, drought conditions seem to run in cycles. Shasta Lake in California is expected to reach full capacity shortly, after years of alarming drought conditions. Regardless of the cause, the climate is changing and always will, as it has for billions of years.
Industries that consume a lot of water should be compelled to recapture and reuse as much water as possible IMHO. Desalinization might be an option for coastal states, but the cost to treat and transport water by pipeline to interior states like NM and AZ would be tremendous and cost-prohibitive.
Bullish
Unless substantiated by FACTS, everything one reads on a stock forum is nothing more than speculative opinion, whether pro or con. FACTS come from the company. OPINIONS come from investors, whether long or short...
