Guest Column | January 7, 2025

Water: The Unsung Hero Of The AI Boom

By Lihy Teuerstein

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Water, the lifeblood of everything, also powers artificial intelligence. Here’s how we can enjoy both in abundance.

Artificial intelligence (AI) is rapidly transforming our lives, with its capabilities expanding at an unprecedented pace. From virtual assistants to machine learning algorithms, which power everything from medical diagnostics to financial forecasting, AI is becoming an essential part of our lives. However, this technological boom comes with a significant environmental cost, particularly related to water consumption. Data centers that power AI operations consume millions of liters of water to cool servers, with each operation on AI platforms having a tangible, yet often overlooked, impact on our water resources.

To put it into perspective, asking between 20 to 50 questions on AI systems like ChatGPT can use half a liter of water. According to research from the University of California Riverside, published in Nature, if each of the 100 million weekly users of virtual assistants submitted just one prompt, it could result in water consumption of up to 0.189 million gallons per day (MGD). In 2022 alone, tech giants like Google, Microsoft, and Meta consumed over 2 billion cubic meters of water for server cooling and electricity use, more than double Denmark’s annual consumption. Virginia, a major data center hub, saw its water usage grow by nearly two-thirds between 2019 and 2023, rising from 1.13 billion gallons to 1.85 billion gallons. These numbers underscore the growing demand for water in AI infrastructure, and with AI innovation showing no signs of slowing, the question becomes: “How can we ensure lasting access to water in a world that is increasingly dependent on data?”

Strategies For Replenishing Water Supplies

To reduce water consumption tied to AI and data centers, companies can employ various water replenishment strategies:

  • Reuse wastewater: Companies can treat their process effluent and reuse it in their systems, thus reducing the strain on local water resources. This can help reduce freshwater utilization and improve the overall sustainability of operations.
  • Use treated municipal water: Companies can invest in treating local municipal water for reuse in their operations as feedwater. By using treated water from nearby municipalities, businesses can minimize their impact on freshwater resources while also contributing to local water management efforts.
  • New sources of water: Another alternative is investing in the creation of new sources of water, such as seawater or brackish water desalination plants, ensuring a sustainable long-term supply of water without impacting freshwater resources. Desalination can provide a critical solution for data centers located near coastal areas where freshwater resources are limited or in areas where there is brackish groundwater.
  • Water offset/credits: In the event that the aforementioned alternatives are not feasible or available, another option is to offset water usage by investing in regional or other water conservation, reuse, or desalination projects. By contributing to other projects and the creation of new water thus acquiring water benefits or credits, companies can compensate for their own consumption and help ensure balanced water supplies in their regions or states or even on a global level.

Additionally, regions looking to attract data centers or industrial operations for job creation and economic growth can invest in water infrastructure, such as centralized wastewater treatment and desalination plants. By creating new, sustainable water sources, these areas can position themselves as attractive locations for companies seeking reliable water supplies for their operations, encouraging them to set up facilities and contribute to their local economies.

Tech Giants Leading The Way

Several corporations are already embracing a water-positive approach in response to growing concerns over water usage. For example, PepsiCo’s “Positive Water Impact” initiative aims to replenish more water than it consumes in high-risk areas by 2030. The company is working on watershed protection, improving water use efficiency in its operations, and providing safe water access in water-stressed regions. Also, Google has committed to replenishing 120% of the water it uses by 2030, primarily through investments in water stewardship, watershed restoration, and infrastructure improvements in water-scarce areas. The tech giant is actively working on projects that enhance community watershed health and support sustainable water practices. Similarly, Coca-Cola has already achieved its goal of replenishing 100% of the water used in its beverages by improving water efficiency, treating wastewater from its plants, and investing in community water projects.

These tech giants are setting a precedent for how AI-driven businesses and large corporations can minimize their environmental footprints. By taking proactive measures to mitigate their water usage, these companies are contributing to global sustainability efforts and setting an example for others to follow. But the question remains: Should we entrust corporations to lead the way, or should governments play a more active role in safeguarding our water resources?

Why Government Intervention Is Key To Sustainable Water Management

While corporations are making strides toward reducing their water footprints, we need to see public policy get involved. Corporations have a duty to their shareholders to ensure profitability, which means that environmental initiatives and long-term sustainability goals, including becoming water-positive, would benefit from being enhanced by the public sector. Though efforts like water stewardship and water credits are important steps in the right direction, they often fall short of addressing the scale of the problem.

By coupling regulations with financial incentives, governments can ensure that corporate efforts align with broader environmental sustainability goals, driving lasting change that benefits both businesses and communities.

Securing Our Water Future: A Collective Responsibility

AI, through its data centers, changes the traditional understanding of industry and industrial use. As AI continues to expand its reach, the water demands of the data centers powering this technology will only grow. While some companies are leading the charge in becoming water-positive, their efforts alone will not be enough to secure the future of our water resources. This should be a collaborative effort by the private and public sectors, through global initiatives and local regulations, to ensure that water remains available for future generations.

About The Author

Lihy Teuerstein, CEO of IDE Water Assets, has been with IDE since 2011 and has been leading the IDE Water Assets business as of 2018. Her previous roles included establishing and heading the Commercial Department of IDE and General Counsel for the IDE group. Teuerstein has a combined LL.B in Law and Far East Studies from the Hebrew University in Jerusalem and is a member of the Israel Bar Association. She also has an M.A. in Sociology and Anthropology from Tel Aviv University.