SpaceX has added a new concern to the risk factors listed in its IPO filing: access to water. The amended prospectus, filed Monday and reported by journalist Sean O'Kane on June 1, 2026, warns prospective investors that water — needed to cool the company's expanding data center operations — has become just as critical a constraint as electricity, processors, and construction materials. The update reflects the growing footprint of xAI, Elon Musk's artificial intelligence company, which is now part of SpaceX and driving much of the demand for compute infrastructure. The original filing focused heavily on power constraints, telling investors that data center buildouts were limited by "power at economically feasible prices," long construction timelines, and shortages of key materials. The amended version broadens that language, stating that significant water resources may be required for cooling large-scale operations and that water availability has become a "critical consideration in data center site selection, development and operations." SpaceX goes on to warn that water scarcity, drought, competition for local supplies, or regulatory restrictions could limit cooling capacity, drive up costs, delay expansion, or force the company to adopt more expensive alternative cooling methods. The change comes against the backdrop of a heated national debate over how much water data centers actually consume, and whether hyperscale facilities are worsening the localized droughts that climate change has made more frequent. Communities from Virginia to Arizona have pushed back on new data center projects, and several states have begun scrutinizing water permits tied to large AI campuses. It's unclear what specifically prompted SpaceX to add the water language now, or why it was absent from the earlier version of the S-1, though the company is currently in the pre-IPO review period with the Securities and Exchange Commission. The timing is notable for investors weighing the offering. SpaceX is positioning itself as more than a launch provider, with xAI's compute-heavy workloads now baked into the company's growth story. But by elevating water to a top-tier risk factor alongside power, SpaceX is signaling that the physical resources underpinning AI infrastructure may be harder to secure than the rockets and satellites that built its original reputation.