Your AI dependence threatens your water security, 1 MW data centre uses 26 mn litres a year

Data centers, computational infrastructure that powers nearly all of today’s digital activities, especially commerce, consume vast amounts of water — up to 26 million liters annually for just a 1MW facility, according to a Lawfare report.

While these data hubs are critical for powering online activities, the unchecked expansion of such infrastructure, especially in water-stressed regions, is exacerbating water scarcity, with significant political, social, and ecological consequences.

Many countries, especially lower-and middle-income nations eager to capitalise on digital transformation and economic growth, have rushed to build this infrastructure and are currently expanding their data center footprints while ignoring potential water risks.

The demand for data centers driven by artificial intelligence (AI) is rapidly growing, with AI’s water consumption expected to soon rival or exceed that of other water-intensive industries like cattle farming and textiles, reported Lawfare.

As climate change intensifies, the need for transparency about AI’s contribution to data centers’ environmental impact becomes even more urgent, especially as industries continue to promote AI-driven solutions to societal challenges.

At the same time, the international community lacks a clear understanding of how data centers impact water resources, largely due to the absence of standardised regulations requiring operators to track and disclose their water usage, added the report.

In this context, transparency in reporting water use has emerged as a crucial policy tool to assess and mitigate both current and future water stress.

According to Lawfare, policymakers have a key opportunity to address water risks linked to data centers: by encouraging transparent reporting of water consumption, they can gain a clearer understanding of the scale of the issue and implement timely, effective interventions.

How data centers use water

While data center energy consumption has garnered attention, their significant water usage remains overlooked.

A small, 1MW data center can consume up to 26 million liters of water annually — equivalent to the yearly consumption of 62 US families. With over 40,000 megawatts of data center capacity in the US, the total water consumption amounts to the equivalent of 2 million families’ yearly needs, reported Lawfare.

Liquid-cooled data centers primarily use water to regulate temperatures. Potable water is typically used to prevent impurities from damaging server systems.

Data centers employ either closed-loop or open-loop cooling systems, depending on whether the coolant water interacts with the air. Closed-loop systems are more water-efficient, as water is circulated through sealed pipes, minimising evaporation.

However, they are more expensive than open-loop systems, where water is lost to evaporation. Most large data centers use evaporative cooling methods. Water consumption varies based on activity levels and location, making it dynamic and sensitive to climate and resource availability.

Understanding the factors driving water use helps assess water loss and scarcity in a region.

According to Lawfare, transparency in water loss, displacement, and distribution would allow policymakers to better evaluate localised water risks and establish usage limits.

Without this, addressing resource displacement and uneven scarcity becomes more challenging, added the report.

Data center-induced water stress spurs political tensions

Developing economies have prioritised data center expansion to drive digital transformation, often at the expense of local water resources.

Tech corporations benefit from incentives like tax subsidies and low-cost real estate, while regions already facing water scarcity struggle with the environmental impact.

According to Lawfare, in Bengaluru where data centers consume 8 million liters of water per day, expansion plans threaten a city still recovering from a severe water crisis.

This issue is not isolated.

In Uruguay, the government’s approval of Google data centers during a historic drought sparked widespread protests. Similarly, in Santiago, Chile, local residents called for transparency over data center water use, while in the US, Loudoun County, Virginia, saw a 250% increase in data center water consumption since 2019, prompting public demands for more oversight, added the report.

Civil action has driven some change.

In Chile, public pressure led to the revocation of Google’s permits, while in Oregon and the Netherlands, citizen groups forced transparency on data center water use. Despite these successes, governments have yet to implement comprehensive transparency measures, leaving local communities increasingly vocal about the environmental impact of data centers.

Emerging actions are welcome but inadequate

Tech giants like Google and Microsoft have taken steps to address water stress through voluntary sustainability measures, such as green data centers, closed-loop systems, and renewable energy. However, these actions are insufficient without greater transparency.

Many cloud service providers (CSPs), including Google, Meta, and AWS, withhold water usage data, citing trade secrets, while local governments, incentivized by subsidies, enter confidentiality agreements that limit information sharing. This lack of transparency undermines accountability and exacerbates water stress.

In a landmark move, the EU introduced mandatory water and energy use reporting for data centers in 2024. While a positive first step, more widespread regulation is needed. Developing countries, balancing digital growth with environmental costs, must prioritize sustainability to prevent long-term political and ecological risks.

Transparency: A crucial step toward sustainability

Transparency is essential for all stakeholders. Data center operators in water-stressed regions face long-term operational and legal risks if resources are depleted. The social and economic impacts of water insecurity will erode public trust and damage reputations.

Governments, particularly in the US, should mandate transparency from tech corporations at the outset, as regulators hold significant influence over global data center operations. Given the regional variability of water use, tailored transparency measures are crucial for addressing local water stress.

Civil society has driven accountability through fragmented but impactful actions, pushing for transparency and policy changes. As water resources are finite, immediate action is necessary to prevent disproportionate harm to vulnerable populations.

With inputs from agencies