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The Basin Water Security Coalition — Founding Member Invitation
An invitation to founding members · Draft for discussion

The Basin Water Security Coalition

The companies building the future in the desert can be the ones that save its river.

Become a founding member See the full stack The evidence behind it
The moment

Hyperscalers and chip fabs are pouring water-intensive infrastructure into the two states at the center of the Colorado River crisis, during the worst hydrology on record. The industry accused of draining the desert is also the one with the balance sheet, the pledges, and the reason to save it.

716M
gallons/yr used by Southern Nevada data centers (2024)
projected growth in Phoenix data-center water, to 3.7B gallons
~4.75M
gallons/day at TSMC’s first Phoenix fab (2025)
$100B+
of announced basin data-center & fab capex at water risk

What these are, and are not. The Southern Nevada figure is reported use for 2024. The Phoenix growth figure is a projection by a third party rather than an observation, and the capex figure aggregates announced projects rather than committed spend. TSMC is building a 15-acre industrial reclamation plant in Phoenix targeting an 85 to 90% recycling rate, due in 2028; quoting its gross draw without that plant would misstate the company’s position.

The backlash has begun, Tucson’s council voted down the “Project Blue” data center, after which the developer committed to a zero-water design. The vote is what is on the record. Arizona is imposing water caps. Every major company has answered with a 2030 water-positive or replenishment pledge. But those pledges are scattered, sub-scale, and defensive. Each company offsetting its own gallons cannot save a river short 3 to 3.5 million acre-feet a year.

Pool them. Convert the industry’s single biggest reputational liability into its signature climate achievement, and secure the water that de-risks the capital.

The full stack

What the Coalition does

The Coalition does not replace the capital markets, it sits on top of them and unlocks them. Layered onto the independently-costed ~$15.7B package (~1 MAF/yr of verified consumptive-use reduction, ~0.6 MAF/yr shepherded to storage), with the cheap, high-integrity conservation market as the anchor (~$400 per verified acre-foot, benefit-cost above 2):

1

Fund the measurement ledger

A public, satellite-and-sensor water ledger, the members’ core competency as data and AI companies. Branded, transparent, the proof of a water-positive basin.

~$0.6B
2

Grant the public-good core

Fund the Glen Canyon temperature retrofit, phreatophyte control, and snowpack work as grants, the pieces with no cash flow. This eliminates the ratepayer surcharge entirely.

~$6B / 10yr
3

Anchor the revenue tier with an offtake commitment

Pre-commit to buy verified conservation, reuse, and recharge water, an advance market commitment that makes the revenue tier project-financeable and crowds in WIFIA, bonds, and infrastructure equity.

~$3–4B
4

Let the markets fund the rest

The offtake and grant layers de-risk the stack so public and private debt fund the balance at roughly 5%.

balance
The result: on the order of a million acre-feet a year of verified, additional consumptive-use reduction, a real dent in a ~1.5 MAF structural deficit, not a claim to erase it, with the no-revenue public goods grant-funded, not loaded onto ratepayers, and every acre-foot verified publicly on a ledger that carries the members’ name. Across five or six of the world’s largest companies over a decade, the commitment is a rounding error against the capex it protects.
Terms · the founding commitment

What founding members commit to

What members get

The return on membership

License to operate

Retires the water risk and moratoria threatening $100B+ of basin data-center and fab investment. Secures the buildout.

2030 pledges met: at scale, with integrity

Coordinated, verified, additional acre-feet at basin scale beat scattered offsets of uncertain quality.

The narrative flip

From “the companies draining the desert” to “the companies that measured and saved the river.” A story no competitor can match and no critic can dismiss.

Regulatory goodwill

Get ahead of the water caps and community opposition rather than fighting them, city by city.

The honest part

If it sounds too good to be true, here is what has to be true

This is a draft concept, not a closed deal. It works only if five things hold. We would rather name them now than have a member’s counsel find them later.

1. A basin finance authority must exist. The capital needs an issuer with a revenue pledge. That means a joint powers authority and, for interstate reach, federal or compact authorization. It does not exist yet. This is the critical path.

2. Verification integrity is everything. The whole thing collapses into greenwashing if the acre-feet are not real, additional, and independently measured. The public ledger and an independent standards council are non-negotiable, not marketing.

3. It must be community-led, not corporate-led in appearance. Tech capital directing basin water invites exactly the speculation backlash that sank private water-rights buyers. Tribal and community partnership must be structural, not decorative.

4. The offtake has to be bankable. A ten-year floor-price commitment from investment-grade counterparties is what anchors the finance. Softer pledges do not move capital.

5. It complements the states, it does not replace them. Allocation and the Law of the River stay public. The Coalition front-runs and de-risks the deal. It does not substitute for it.

None of these is a dealbreaker. Each is a design requirement. Named up front, they are what make the proposal credible to a sustainability lead and their general counsel.

Sign on · founding members

The founding call

We are seeking two or three anchor conveners, the water-positive leaders already in the Water Resilience Coalition, to seed the measurement ledger and the first offtake tranche, then scale to the full coalition. Precedent shows this works: Frontier mobilized a $925M advance market commitment for carbon removal from Alphabet, Meta, Stripe and Shopify. The LEAF Coalition raised $1.5B+ for forests.

Founding anchor, open
Founding anchor, open
Founding anchor, open
+ founding members

Founding Member Letter of Intent DRAFT · non-binding

The undersigned company intends, in good faith and subject to definitive agreements, to become a Founding Member of the Basin Water Security Coalition. We intend to (i) contribute a pro-rata share of funding for a public basin water-measurement ledger, (ii) participate in a ten-year advance market commitment to purchase independently-verified, additional consumptive-use reduction (shepherded to storage) at a floor price, (iii) contribute to a public-good grant pool for basin infrastructure. And (iv) support governance that centers tribal and community partnership and independent verification. This letter creates no binding obligation and is an expression of intent to negotiate in good faith.

Company & authorized signatory
Date & indicative commitment

To express founding-member interest or request the full data room (evidence, model, financing memo), contact Steps Ventures. This page is a draft prospectus for discussion, not an offer of securities or investment advice.