AI Boom Strains Water Supply Across America

The rapid growth of artificial intelligence in the United States is leading to an increased demand for water, as detailed in a report by JPMorgan Chase and ERM. This demand is due to a combination of factors, including a growing population and the relocation of individuals to arid regions already facing water scarcity. Data centers, which are essential for AI operations, consume an enormous amount of water for cooling purposes—up to 5 million gallons daily—akin to the needs of a town of 10,000 to 50,000 residents. In 2023, these facilities used over 75 billion gallons of water, with significant portions sourced from stressed watersheds, raising concerns among industry stakeholders and local communities about water availability and environmental impact. Moreover, the manufacturing of semiconductor chips, the core components for AI technologies, also imposes water management challenges. The production of these chips is water-intensive and generates toxic wastewater, which complicates existing water resource issues. The report underlines the interconnectedness of AI advancements and water management, stressing how critical it is for sustainable practices to be implemented for these operations. Given the ongoing challenges such as insufficient funding for water infrastructure, projected at an annual gap of $91 billion, the report advocates for innovative solutions. These include adopting waterless cooling methods for data centers and advanced wastewater recycling technologies. Failing to act on these recommendations could result in stranding business assets due to water regulation changes and supply shortages, further endangering ecosystems and livelihoods.