AI Data Centers Under Scrutiny for Water Usage Amid Environmental Concerns

As artificial intelligence (AI) continues to permeate various sectors, the data centers powering this revolution are consuming substantial amounts of water for cooling purposes, raising environmental concerns, particularly in regions facing water scarcity.

The rapid expansion of AI has led to a surge in data center construction, significantly increasing water usage for cooling. In 2023, Google's data centers consumed over 6 billion gallons of water. Similarly, Microsoft's data centers reported that 42% of their freshwater withdrawals in 2023 came from areas experiencing water stress. A medium-sized data center can consume up to approximately 110 million gallons of water annually for cooling purposes, equivalent to the annual water usage of about 1,000 households.

The substantial water consumption by data centers has raised environmental concerns, particularly in regions facing water scarcity. In The Dalles, Oregon, a Google data center used 29% of the town's total water supply in 2022, leading to public outcry. Similarly, in Santiago, Chile, Google's data center consumed approximately 100 million gallons of water annually amid a 15-year drought, prompting local activism and legal challenges. The indirect water usage through electricity generation further compounds the issue. Thermoelectric and hydroelectric power plants, which supply electricity to data centers, require significant amounts of water for cooling and steam generation. The national weighted average for thermoelectric and hydroelectric water use is 2.0 gallons of evaporated water per kilowatt-hour of electricity consumed.

In response to these challenges, the tech industry is exploring various strategies to mitigate water consumption. Innovations such as liquid immersion cooling and direct-to-chip cooling have been developed to reduce water usage. Liquid immersion cooling, for example, can reduce water usage by up to 80% compared to traditional cooling methods. Companies are increasingly powering data centers with renewable energy sources like solar, wind, and hydroelectric power to reduce the environmental impact associated with electricity generation. Some data centers are implementing closed-loop cooling systems that recycle water, significantly reducing waste. For instance, Google's data center in Atlanta uses recycled water, accounting for 30% of its total water usage for cooling.

Governments and regulatory bodies are increasingly addressing the environmental impact of data centers. In the United States, the Artificial Intelligence Environmental Impacts Act of 2024 was introduced to mandate the development of standards for assessing AI's environmental impact and to create a voluntary reporting framework for AI developers and operators. In the European Union, the upcoming AI Act will require high-risk AI systems to report their energy consumption, resource use, and other impacts throughout their lifecycle.

Despite these efforts, challenges remain. The effectiveness and transparency of industry measures are under scrutiny, with concerns about the adequacy of current strategies in addressing the scale of water consumption. Calls for more comprehensive reporting and sustainable practices within the industry are growing.

Balancing technological advancement with environmental sustainability is crucial. Continued innovation, transparency, and regulatory oversight are essential to ensure the responsible growth of AI and data center operations.