The artificial intelligence boom is driving a global surge in data centre construction, and a new study suggests that many of these facilities are being built in places where water is already scarce.
About a quarter of the world's data centres are located in areas where water demand can exceed available supply, according to research published by the American Chemical Society (ACS). Climate change could increase that share to about a third, the researchers found, as rising temperatures and changing rainfall patterns put more regions under water stress.
"These facilities are not landing in empty landscapes. They are landing on top of the water supply of cities and farms," said Lorenzo Rosa, one of the researchers behind the study.
Why data centres need water
Data centres consume large amounts of electricity to power servers, and much of that energy is converted into heat. Many facilities use water-based cooling systems, such as evaporative cooling towers, to keep equipment at safe operating temperatures. These systems can consume significant volumes of water, particularly in hot climates.
Data centres also use water indirectly, through the electricity they consume. Thermal power plants, which burn coal or gas, and some other power sources require water for cooling, so the water footprint of a data centre depends in part on how its electricity is generated.
AI has intensified these demands. Training and running large AI models requires powerful chips that generate more heat than traditional servers, increasing cooling needs. As companies race to build AI infrastructure, the total water footprint of the data centre industry is growing rapidly.
Competition with cities and farms
The study's central finding is that data centres are often located in regions where they compete with other water users, including households, agriculture and industry. In water-stressed areas, demand from data centres can add pressure on already strained supplies, particularly during droughts.
Data centre locations are typically chosen based on factors such as access to electricity, fibre networks, land, tax incentives and proximity to customers. Water availability has not always been a primary consideration, although that is changing as companies and governments recognise the risks.
In several regions, data centre projects have faced opposition from local communities concerned about water use. Disputes have arisen in parts of the United States, Latin America and Europe, where residents and farmers have questioned whether scarce water should be used to cool servers.
Industry responses
Technology companies have responded by investing in more water-efficient cooling technologies. These include closed-loop systems that recycle water, air cooling in cooler climates, and liquid cooling that delivers coolant directly to chips, which can be more efficient. Some companies use recycled or non-potable water and have pledged to become "water positive," replenishing more water than they consume.
However, these measures involve trade-offs. Systems that use less water may consume more electricity, and the most efficient technologies can be expensive to deploy. Critics argue that corporate water pledges often rely on offsetting projects elsewhere and do not address local impacts in water-stressed areas.
The market for digital sustainability solutions is growing rapidly. A report from Lenovo and research firm ISG estimates that the digital sustainability market will reach $34.3 billion in 2026, reflecting demand for technologies that reduce the environmental footprint of IT.
