'Unprecedented drought conditions': More than 500 data centers across Nevada, California, and Arizona could feel the pinch as the iconic Hoover Dam potentially loses 40% of its power output because of poor rainfall and abnormally low snowpack numbers

Hydropower losses mount as water levels in the Colorado River plunge

by · TechRadar

News By Efosa Udinmwen published 3 May 2026

(Image credit: Know Your Water News)

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  • Hoover Dam power output threatened by severe drought conditions
  • Federal water management plan prioritizes upper basin reservoir stability
  • Colorado River system storage falls to historically low levels

The Hoover Dam, a critical power source for three US states, could see its electricity generation drop by as much as 40% as early as this fall.

Completed in 1936, the dam currently has an installed capacity of 2,078.8 megawatts (approximately 2.08 gigawatts) and produces about 3.3 terawatt hours of energy annually.

The Department of the Interior has announced an emergency drought management plan that will cut water releases from Lake Powell to the minimum legally allowed level.

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Upper basin rescue, lower basin sacrifice

This decision, designed to protect Glen Canyon Dam’s ability to produce power, will directly reduce Hoover Dam’s generating capacity by approximately 830 megawatts (0.83 gigawatts), removing roughly 1.32 terawatt hours of annual energy from the regional grid.

Long-term drought has reduced Colorado River system storage to roughly 36% of its total designed capacity, according to the Bureau of Reclamation.

Lake Powell’s inflow forecast sits at just 2.78 million acre-feet, only 29% of the historical average and among the lowest ever recorded.

Without major intervention, Lake Powell could fall below the minimum power pool level of 3,490 feet by August of this year.

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