SpaceX Adds Water Scarcity Risk to IPO Filing, Citing Data Center Cooling Needs

SpaceX on Monday, June 1, 2026, amended its initial public offering filing to warn investors that water availability could become a critical constraint for cooling its data centers. The updated prospectus elevates water to the same level as power and processors as essential resources for AI infrastructure. The filing states that “significant water resources may be required for cooling large-scale data center operations.” It cautions that water scarcity, drought conditions, or regulatory limits could impede data center expansion, raise costs, or force reliance on more expensive alternative cooling techniques. The disclosure follows an active SEC review period, though related comment letters will not be public until after the IPO. In other revisions, SpaceX said it will reserve up to 5% of shares for employees and friends of executives. The company also flagged potential dilution, warning that significant future share issuance could occur in transactions such as a merger with Tesla.