AI’s water strain includes surging demand from electricity use
AI data centers are increasing water demand not only through onsite cooling but also indirectly through power plants that generate their electricity. Researchers warn that this hidden consumption could significantly strain water supplies, especially in drought-stressed areas such as the Phoenix region, while developers promote lower-water cooling and renewable energy solutions.
Researchers say the rapid expansion of AI data centers is creating substantial indirect water demand because power plants use water to generate the electricity needed to run energy-intensive servers. A University of Michigan study estimated that offsite water consumption could add 14 billion gallons annually to the total associated with three planned AI data centers in Michigan. National estimates of indirect data center water use vary widely, from 211 billion gallons to as much as 4 trillion gallons per year.
The issue is particularly acute in Arizona, where data centers are concentrated around Phoenix and drought has reduced Colorado River supplies. Phoenix officials currently evaluate applicants based on onsite water use, not the water consumed to produce electricity. Amazon, Google and Microsoft described efforts to reduce direct water use or rely on renewable energy, but the article notes that air-cooled systems can shift water demand to power generation and may consume more water indirectly than water-cooled systems.