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Home to two million people, the Gaza Strip sits squeezed between Israel and the Mediterranean Sea on a bit of land just twice the size of Washington, D.C. Gaza is the smaller part of Palestine’s two territories; you could walk the length of its southern border with Egypt in under three hours. But land is not the only thing that’s long been in short supply in Gaza. As the war between Israel and Hamas, the Palestinian militant group that rules the region, has made clear, Gaza is also increasingly bereft of water.
Over the course of the tragic war, water infrastructure has played an unprecedented role. In the aftermath of Hamas’s massacre and kidnapping of Israeli civilians on October 7, the Israeli government took measures to halt drinking water — as well as aid, food, and electricity — from entering the Strip. First, on October 9, Israel shut off the pipelines that usually send water into Gaza and halted deliveries by truck. And while it turned back on some of the pipelines on October 15, it didn’t restart the electricity or the fuel shipments that power Gaza’s desalination and wastewater treatment plants.
Yet these harsh measures in recent weeks belie a much longer-term problem, as a deeper dive into the region’s infrastructure reveals. Palestinians in Gaza have not had access to safe or ample drinking water for decades.
“The water crisis that Gaza is facing is a chronic crisis,” Dr. Shaddad Attili, the former Palestinian minister of water and head of the Palestinian Water Authority (PWA) from 2008 to 2014, told me. “But now water is being used as a weapon. If they don’t get killed by missiles, they will die from the contaminated water that they’re using.”
The Israeli Defense Forces, the water authority in the West Bank, and COGAT, the Israeli body responsible for the government activities in the Palestinian territories, all did not reply to requests for comment by the time of publication.
There are three natural water resources that run through Israel and Palestine: the Jordan River Basin on the eastern border; the Mountain Aquifer, which runs directly through the West Bank; and the Coastal Aquifer, on which Israel is upstream and Gaza is downstream. The majority of the water comes from these three sources, but since the region is a desert geography, water is generally in short supply.
Israel acquired control over all the water that runs through the Israeli and Palestinian territories in the Six-Day War in 1967 when it seized the Gaza Strip from Egypt, the West Bank from Jordan, and the Golan Heights in the north from Syria. In November of that year, Israel introduced a military order stating that Palestinians could not construct any new water infrastructure without first obtaining a permit from the Israeli army. Israel gave, and continues to give, these permits sparingly.
Today, the water discrepancy is striking. While there are eight times more Palestinians living in the West Bank than Israeli settlers, 70% of the water output is given to the settlements, where it is largely used for farming, according to an April 2023 report on the West Bank’s water deprivation by the Israeli humanitarian organization, B’Tselem.
During the Oslo Accords in the mid-1990s, the West Bank won some rights to run their own pumping stations in select parts of the territory. Today, they still need to earn permits from the Israeli military in order to build new pumping stations. Gaza used to pump their water from the Coastal Aquifer, but developments over the past 30 years have made that water inaccessible.
Prior to this war, the water situation in Gaza was already dire. The World Health Organization said that Gaza’s water supply was unable to meet the minimum requirement for daily per capita water consumption.
Gaza has some unregulated pumping stations that pull water up from the aquifer, but they’re not a major cause of the problem. The Coastal Aquifer extends from a town called Binyamina in Northern Israel to the Sinai Desert in Egypt. Just 2% of the total aquifer passes through Gaza. Through the late 1990s, it supplied drinkable tap water to most of Gaza’s residents. While it historically has provided 95% of their freshwater, it’s unusable now for a few reasons.
First, Gaza’s population growth rate is among the highest in the world, with almost half of the population under 18 years old in 2022. High population growth means the already scarce groundwater can no longer replenish fast enough to meet demand.
But there are deeper problems with the water’s quality. Seawater seeps into the aquifer since it’s so close to the coast and untreated wastewater has polluted the aquifer for decades to a point that it’s no longer safe to drink. In 2020, a study in the journal Water said that the quality of groundwater in the Coastal Aquifer had “deteriorated rapidly,” largely due to Israeli pumping.
“At least 95% of the freshwater (from the aquifer) is either inaccessible or not drinkable,” said Jordan Fischbach, director of planning and policy research at The Water Institute and author of a report on the public health impacts of Gaza’s water crisis in 2018.
As a result, the Coastal Aquifer — the primary source of Gaza’s water — is essentially out of commission. Residents of Gaza are now left with only about 20% of their needs filled.
But those sources have also proven to be unreliable.
The first are the pipelines, which were built with funding from international humanitarian aid. The pipelines run from Israel-controlled fresh aquifers and the water is paid for by the Palestinian National Authority (PA) in the West Bank. These are the pipelines that Israel stopped sending water from following Hamas’ attack on Israeli civilians.
But even in the best of times, the pipelines only supply around 10% of the water demand in Gaza. Attili from the Palestinian National Authority said that the water is combined with some of the unsafe brackish water in order to increase volume.
The second source of water are small-scale desalination plants, which turn seawater into potable water, but they rely on electricity to run.
Usually they provide another 10% of Gaza’s water, but when Israel halted the importation of fuel and shut down electricity transmission into Gaza, these plants stopped running too.
However, even when electricity and fuel are available, over one-third of plants are not monitored, maintained, or officially regulated. “A number of construction materials, fuel and other things you would need to build and power drinking and wastewater facilities are considered ‘dual use.’” said Fischbach, meaning they could also be used to build weapons. “These are types of materials that are restricted by both Egyptian and Israeli authorities.”
A 2021 study showed that 79% of desalination plants are unlicensed and 12% of water samples tested showed dangerous contamination levels.
“Desalination is necessary to get anything even close to drinking water quality and only a fraction of [desalination plants] are actually licensed and monitored” said Fischbach. “Many of them are producing water that we would still consider below drinking water quality.”
He added that most of them don’t run to their capacity anyways because they are so energy intensive and Gaza doesn’t have enough electricity.
Gaza also gets water from water trucks controlled by humanitarian aid or delivered by the Palestinian National Authority. This water passes directly through Israeli land, which means Israel was able to easily halt deliveries in the wake of the Hamas attacks.
In recent weeks, some residents of Gaza have resorted to drinking sea water or brackish water directly from the Coastal Aquifer. Not only are these not sources of freshwater, they are also further polluted by untreated sewage running through the region.
Israel’s decision to cut electricity to Gaza also meant that the wastewater treatment plants can’t run. Treated wastewater is used for showering and other sanitation uses. But when it’s not processed through a plant, wastewater runs into the aquifer and groundwater, further polluting what’s left of their drinking sources.
While the situation is worse due to the lack of electricity from the war, Gaza has never had ample wastewater treatment plants.
“For two decades now Palestinians have been prevented from building and maintaining the infrastructures that keep wastewater out of the aquifer,” says Sophia Stamatopoulou-Robbins, a cultural anthropologist and professor at Bard College. She is the author of Waste Siege: the Life and Infrastructure of Palestine.
In the West Bank, the aquifer is deep, carrying around 340 million cubic meters of water every year, so wastewater that has been somewhat treated can be further cleaned by soil and rock as it seeps through the aquifer. But Gaza’s aquifer is very shallow — its estimated to carry only about 55 million cubic meters per year —, and therefore cannot clean the water. Instead, it needs extensive infrastructure.
“In Gaza, you would need an incredibly high sophistication of technology to permit the wastewater to go safely into the ground,” says Stamatopoulou-Robbins. “Even the kind of concrete containers that would hold wastewater are not permitted to be maintained or built.”
In addition to the plants themselves, you would need piping to connect buildings to the wastewater treatment plants, she adds. “So all of the conveyance technology and infrastructure which is expensive anywhere in the world, all of that is subject to Israeli controls and tends to be prevented.”
As is the case with desalination plants, neither Israel nor Egypt allows the necessary materials into Gaza for building wastewater treatment plants because those materials are also considered dual-use materials.
Even as Israel turned the water and electricity back on, there are questions around how many of these desalination and wastewater treatment plants have been bombed and are no longer running.
As far as logistically turning off these resources, it’s fairly straightforward. “The ability to shut off electricity transmission is quite easy,” said Fischbach. “It’s just flipping a switch — the same way with a rolling blackout. Fuel imports are also easy. Nothing is going into Gaza. As far as drinking water lines, you can just not pump that water. So the logistics are easy.”
Several reports of hygiene related diseases spreading through cramped spaces are surfacing in recent days. Doctors in Gaza are saying that patients are showing signs of disease caused by overcrowding and poor sanitation. Children are suffering from diarrhea, lung infections, and rashes.
“The desalination plants are out of service because there’s no electricity, the sewage treatment plants are out of service because there is no electricity. And because our people now take refuge in shelters, there is a hygiene problem,” said Attili. “I have gone to so many conferences where we say water is a tool for cooperation, not conflict, and they all agree, but now the international community remains silent.”
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1. Suffolk County, New York – Rarely do I get to say battery fire fears can be quelched but we have a very good example brewing in the Empire State.
2. Loudon County, Virginia – I can’t believe it: Data Center Alley is going to enact a moratorium.
3. Pulaski County, Arkansas – Entergy has dropped the lawsuit it filed against an Arkansas newspaper over the publication of a power deal with Google.
4. Darlington County, South Carolina – We conclude this week’s Hotspots with a focus on a GOP-leaning county rejecting a renewables moratorium.
A conversation with Sam Lyman of the Bitcoin Policy Institute.
This week’s conversation is with Sam Lyman, head of research at the Bitcoin Policy Institute. Originally focused on cryptocurrency, Lyman’s organization has expanded to policy and messaging development around data centers, most notably providing research many AI boosters cite to claim foreign influence is driving opposition to new hyperscale projects. Last week, the think tank released a new report calling for a novel solution to the data center permitting bottleneck: direct cash payments from data center projects to individuals involved with building them, as well as residents nearby facilities once they’re operating.
I reached out to BPI and asked for a chat with Lyman about the data center dividend proposal. I also tried to get to the bottom of where this increasingly relevant think tank stands on the general idea of a national data center law. The conversation was immensely informative. So here it is, in a lightly abridged and edited format.
Let’s start with the data center dividend proposal. Walk my readers through it.
Data center dividends came from the idea that, ideally in the AI revolution, we want all Americans to benefit. Especially rural Americans. You look at the landscape today, the majority of AI data centers are being built in rural America. It’s critical they’ll benefit from the massive wealth AI will unlock.
There’s lots of ways to make that happen. People point to the jobs AI data centers will build out, for example. But with data center dividends, we take the logic of the Alaska Permanent Fund and we apply it to America’s rural counties, which are sitting on a proverbial gold mine right now but lack any kind of public mechanism allowing them to benefit from that in a maximal way.
If you look at the tax revenue these data centers create, which is astronomical, how do we distribute this tax revenue in a way where it has the most tangible impact on the families living there? We believe data center dividends are the best way to do that – after allocating money for schools, public safety, and infrastructure, it allows these counties with tens of millions of dollars left over to distribute them as they see fit. They should distribute that money to the men and women who make those data centers happen in the first place.
The most effective form of a dividend would take a direct payment: a cash payment, a physical check, a direct deposit. Or the form of credits paying back property taxes, utility bills, an endowment for scholarships. There’s a number of different forms this can take.
Hopefully this gets the conversation going about how we can make these work for everybody.
Who do you want to see set up this dividend mechanism? How’s your approach to implementation?
The report is addressed to county commissioners. I’m thinking of commissioners who represent both sides of the political spectrum facing this huge backlash. Many of them want to do good by their communities and their voters, even if it means doing a data center, in places where it’s difficult to explain right now. Dividends make this indisputably clear.
I tried to put myself in the shoes of an enterprising county commissioner who sees the merits in the data center buildout and wants to break out of the political storm. It’s important to note data centers can be a huge economic boon for communities, in ways that can impact lives positively.
Have any communities – counties, as you noted – taken this idea up yet? Are there any models for this proposal?
The best analogue is West Feliciana, Louisiana, which is the case study we feature. West Feliciana made an agreement with a data center developer where in lieu of taxes, they make direct payments of about $90 million a year to the parish. That triples the community’s tax budget every year. It leaves ample room not only for essential services but dividends afterwards. Louisiana then passed a law – Act 434 – that allowed West Feliciana to remit some of those payments to residents as a tax credit. This bill first provided the opportunity for the parish to even remit those payments as cash, but it was changed in the legislature to make it a credit. That’s the closest we’ve gotten so far.
As far as reaching out to individual counties, we’re a think tank. We put ideas into the universe. We haven’t had anyone reach out to us since the publication of the report so far but we’re hoping they will.
Your report does lay out how there’s a bottleneck in development and this could help with easing it. Do you see an impetus to put ideas like the dividend out there right now, in light of the increased data center scrutiny in this year’s midterms?
Our publication is irrespective of the midterms. But it is tied to the fact that a bottleneck facing the data center buildout includes it becoming a politicized issue. We’re of the belief these projects shouldn't be political at all. One way to break through the noise is by showing how they can benefit those involved in construction and residents who live there. Data centers are critical infrastructure; other forms of critical infrastructure aren’t being politicized. Our efforts are to demonstrate how these shouldn’t be political.
When it comes to the future of AI data center regulation, this proposal is obviously geared towards incentivizing a resolution to the bottleneck through using resources produced from data centers – namely, new investment.
Where does your organization stand on the increased push for environmental or siting regulation on AI data centers?
I’m not familiar with what you might be referring to there.
I mean, there’s all kinds of proposals at the federal level and in states for everything from being required to pay for infrastructure upgrades to being required to use closed-loop cooling to siting restrictions, like temporary moratoria.
What I’m asking is, what else do you as an organization believe when it comes to regulating AI data center development at the federal level? State level?
We believe data centers should work for the communities where they’re being built. That’s important. So the concept of BYOP – Bring Your Own Power – we very much support that idea. We think the Ratepayer Protection Pledge is a great proposal because ultimately we want data centers, with them being critical infrastructure, to not only strengthen our national security but strengthen the communities where they’re being built.
Some states are rejecting data centers. We think that’s a mistake because it's something that’ll ultimately short-change the people who live there. For the states that do decide to build data centers, it's up to them what regulations make data centers more sustainable over time.
There’s increased public discussion for policy on AI development – as an organization, do you see any role in the federal government making policy here with a national data center law?
We think AI will be key to America’s prosperity over the long-term. We have concerns about the regulation of open-source artificial intelligence; bitcoin is a form of open-source software and open-source money. We believe intelligence should be something available to all Americans. That’s our concern with talk about regulating AI right now, it feels like a ploy for regulatory capture.
But what about national policy on AI data centers? Does your think tank support the national legislature doing a federal data center bill or is that something best for localities or states?
It depends on the bill. Are you talking about Sen. Bernie Sanders’ national moratorium?
With a permitting deal seemingly on the horizon, Republican Gabe Evans and Democrat Scott Peters may be about to see their partnership pay off.
The fate of permitting reform legislation that could smooth the way to all kinds of new and improved energy infrastructure — including transmission lines and renewables — is currently hostage to opaque discussions between Senate committee chairs. Rhode Island Senator Sheldon Whitehouse, the Democratic ranking member of the Senate Environment and Public Works Committee, told a Rhode Island business group earlier this week that “we’re actually in a pretty good place on permitting reform,” and that there was “maybe another week of negotiations.” Whitehouse’s Republican counterpart on the EPW committee, West Virginia Senator Shelly Moore-Capito, told Semafor on Friday that any bill has “got to pop out of here in the next 48 hours.”
If that’s going to happen, it will be because Republicans and Democrats have decided it’s worth it to get along. Any deal will eventually have to be voted on by the House, which has already produced several bills on a bipartisan basis, and even passed one — the SPEED Act — late last year.
Two of the busier House members on this issue are Scott Peters, a Democratic former environmental lawyer from San Diego, and Gabe Evans, a first term Colorado Republican representing a suburban and rural district north of Denver that includes wind farms and crude oil production. “The district that I represent truly is an all of the above energy district,” Evans told me.
Their latest effort is a bill aimed at smoothing out permitting for transmission development, especially interregional transmission. Last week, the two congressmen unveiled the CLEAR Act, seeking to apply a stricter set of standards for lawsuits against transmission projects that aligned with how natural gas and hydropower projects are treated under the Federal Power Act (it’s much harder to sue to stop these projects). Earlier this year, the two also sponsored the CERTAIN Act, a more comprehensive streamlining of federal permitting for energy infrastructure projects.
“We’re proud to have a lot of our work as the foundation for this, and I think if they send us over something that includes this, it’s got a really good chance of passing in the House,” Peters told me. Evans added that bringing forward bipartisan bills “gives a little bit more impetus to the Senate to know that the House is looking for these things.”
While the Senate’s deal will be up to the senators, Peters told me he envisions a broad permitting package that could include reforms to the National Environmental Policy Act to shorten permitting timelines, preventing the president from nixing individual projects, and reform Section 401 of the Clean Water Act which effectively devolves power to tribes and states to block a variety of interstate projects. “I think it’s coming together pretty well,” Peters said. “Obviously, we’re waiting for white smoke from the Senate.”
A permitting reform package may be one of the last major bills several bipartisan-minded House members get to vote on.
Election day is about six weeks off, and while Peters will likely have an easy time getting reelected for this eighth term, Evans is in a tough race. His purple-hued district is a target for the House Democratic campaign arm, which is hoping to flip it to former Colorado House of Representatives member Manny Rutinel, who worked as a lawyer at the environmental group Earthjustice. The Cook Political Report rates the race as toss-up, and Nate Silver gives Rutinel a roughly 75% to win.
But Rutinel won’t be getting any campaign help from Peters.
When I asked Peters about the timing of releasing a bill that could boost an endangered Republican’s bipartisan bona fides less than two months before an election, Peters told me that he and Evans had been working on it “for a while,” and that “my colleagues know that I’ve worked with Republicans to get problems solved.”
He said he wasn’t “participating in Gabe’s election” and wasn’t giving any money to his campaign, but also that he wouldn’t campaign Evans’ challenger, despite the opportunity to bolster his own caucus.
Peters is not shy about praising Evans. “What I appreciate about Gabe is that it takes a little bit of initiative to separate yourself from the majority — particularly when you’re in the trifecta — and do your own thing. He’s been a good partner in helping find ways to reduce process and make things go faster,” he told me.
Evans told me that he and Peters met early in this Congress, as Evans was getting settled into his new office in the Longworth building. “We’ve built the relationship over the last two years with a lot of the different areas that we’ve collaborated on.”
“I always try to meet the members of my committee and find out who will work with me. And I was fortunate to find Gabe,” Peters said.
“I do want to win the majority in the next Congress,” Peters went on, but “the norm should be that we figure out ways to work together to solve problems, and, you know, we’ll let the voters of Colorado 8 decide who to send me.”
Evans, for his part, told me that he had to work with Democrats to get anything passed as a member of a minuscule Republican minority in the Colorado statehouse, and that the 40-plus members of the bipartisan Problem Solvers Caucus have agreed not to campaign against each other. “There’s 385 other members that you can go pick fights with,” he said.