Tech investment in state-of-the-art water system could reshape Prineville’s economy

PRINEVILLE, Ore. (KTVZ) — Deep in the heart of Central Oregon’s oldest city sits a state-of-the-art aquifer system that many other states wish they had. Funded almost entirely by Meta and Apple, the system stores winter water for summer use and keeps Prineville’s data centers cool during the dog days of summer. It has fueled growth in Prineville and could even revive manufacturing, but it has also raised questions about water use, costs, and who is footing the bill.

A City at a Crossroads

In the early 2000s, Prineville was at an inflection point. Businesses wanted to move in, but water was running out. Casey Kaiser, assistant city manager, explained, “We were running up against the capacity of our water system. So we needed a solution.”

The solution came in the form of a giant buried canyon that could store millions of gallons of water. Mayor Jason Beebe explained, “It’s a large aquifer that used to be that Crooked River channel before the Cascade eruptions pushed it to where it is now.”

How the Aquifer System Works

Prineville’s system is based on a concept called Aquifer Storage and Recovery (ASR), a water management technique used in municipalities across the U.S. to store excess water underground for later use.

In Prineville, the system starts with 17 giant pumps that draw water from beneath the Crooked River, where groundwater rights allow it. Because of how water rights are structured, the city draws from groundwater beneath the river rather than directly from the river itself. The water then goes to a treatment facility to be filtered, removing impurities so it meets drinking water standards.

From the treatment plant, a booster-pump system pushes the water uphill to an injection well near Prineville’s airport. There, the water is injected down through well casings under pressure into a confined aquifer, where it fills the natural spaces between rock and sediment. In geological terms, this aquifer is an ancient channel of the Crooked River, isolated and capable of storing vast quantities of water underground.

Kaiser said the system’s capacity is massive, up to 800 million gallons of water, making it uniquely powerful for a small community. “It’s pretty amazing to be this little community of 12, 13,000 people that has the kind of infrastructure and capacity that we do.”

Tech Giants Step In

The aquifer allows the city to store winter water for summer use and keeps data centers cool during peak demand. Kaiser noted that the system’s water usage is surprisingly modest: “Of the three data centers in town, they only use about 10 percent of the water used in Prineville. That’s not a lot of water compared to when we had five lumber mills here that were watering their log decks all summer long.”

Mayor Beebe echoed that sentiment, saying the lumber mills used vastly more water, though he still strongly supports bringing them back to the City.

Meta and Apple funded nearly the entire system. Kaiser emphasized that the data centers pay the same water rates and system development charges as any other industrial developer: “Neither Apple nor Meta gets any break on the fees assessed for water usage, despite them paying for nearly the entire system.”

Community Benefits and Economic Growth

Meta emphasized that their support of the aquifer system is part of broader investments in Crook County, including partnerships with local schools and nonprofits. The company has contributed millions to support digital skills and opportunities, while its more than $2 billion investment in Oregon supports local jobs and economic growth. They also highlighted their commitment to 100% clean and renewable energy and their goal of becoming water positive by 2030, helping ensure a sustainable future for Prineville.

Apple didn't respond to multiple interview requests.

Mayor Jason Beebe said the tech companies have been excellent partners. “They’ve been an awesome part of projects and things we’ve done, and they contribute to a lot of the local community,” he said. Beebe, a lifelong resident, acknowledged that while it’s sometimes tough for tech to fit in, the benefits outweigh the negatives. “I don’t care if Mark Zuckerberg’s liberal, what he does in his own personal time, that’s on him. The way he runs a business is outstanding, and it’s provided a lot of jobs,” he said.

Beebe also noted that careers have been created from opportunities provided by the data centers. “I would conservatively estimate there’s probably 600 people between the two sites at least. There’s probably more,” he said.

With as much as 800 million gallons of water on hand, the tech partnership could support more data centers, as well as the revitalization of manufacturing and timber operations. “Yeah, absolutely. I would love to see us… put people back to work out there and clean up the forest. I would love to see that,” Beebe added.

Balancing Growth and Culture

While the aquifer system and tech presence have brought tangible benefits, some residents are concerned about cultural impacts. Crook County has hundreds of years of history, and many families have lived there for generations. Residents take pride not only in where they live but also in how they live, with a strong cowboy and ranching culture.

Many locals have expressed concern that large-scale land purchases by tech companies could erode that culture. Beebe acknowledged this tension but said he has learned it is impossible to make everyone happy. “And that’s the hard thing I had to realize years ago, I can’t make everybody happy about data centers,” he said.