Data centers face growing water pressure as artificial intelligence expands

Monday 31 August 2026 - 13:15

By: Azzat Manal

Data centers face growing water pressure as artificial intelligence expands

The rapid expansion of data centers is creating a new environmental challenge: rising pressure on water resources. As artificial intelligence, cloud computing and other digital services continue to grow, large-scale facilities require increasingly sophisticated cooling systems to manage the heat generated by thousands of servers.

According to estimates from Rystad Energy, direct water consumption for cooling data centers worldwide could rise sharply over the coming years. Under a scenario in which current cooling practices remain largely unchanged, annual consumption could reach around 644 billion liters by 2030, compared with approximately 222 billion liters in 2025.

The outlook could improve significantly if operators adopt more efficient technologies. Rystad Energy estimates that advanced water-saving measures could limit annual consumption to about 388 billion liters by the end of the decade. Under a more moderate efficiency scenario, consumption could reach roughly 543 billion liters.

The amount of water required varies considerably between facilities. Climate conditions, the design of the data center, the cooling technology used and the methodology applied to measure water use can all influence the figures. A distinction must also be made between water withdrawn from natural or public sources and water actually consumed during operations.

The growing water footprint of digital infrastructure has prompted major technology companies to strengthen their sustainability strategies. Companies such as Amazon Web Services, Google, Microsoft and Meta have announced initiatives aimed at improving water efficiency and supporting projects designed to replenish freshwater resources.

These programs can include investments in watershed restoration and measures to improve water efficiency in sectors such as agriculture. However, their effectiveness can vary substantially depending on local conditions, particularly in regions already facing severe water stress.

Governments and regulators are also beginning to pay closer attention to the issue. In several markets, authorities are introducing measures aimed at improving the environmental performance of data centers, although some policies continue to focus primarily on monitoring and reporting water consumption rather than imposing strict efficiency requirements.

The European Union is preparing measures addressing data-center energy efficiency that include performance standards and classification mechanisms. Singapore has also established targets for water efficiency as part of its efforts to develop greener data-center infrastructure.

In the United States, regulation differs from one state to another. Texas, for example, has seen discussions and policy initiatives concerning the rapid development of data centers, including their demands for electricity and water and the potential impact of cooling systems on local resources.

Rystad Energy expects water availability to become an increasingly important factor in determining where new data centers are built. This consideration could become particularly significant as technology companies develop larger facilities designed to support the growing computing requirements of artificial intelligence.

By 2030, areas classified as experiencing high or extremely high water stress could account for around 34% of direct global water consumption by data centers, according to the research firm. The use of more water-efficient cooling technologies could reduce consumption in these areas by approximately 45%.

Several regions are already facing the combined challenge of water scarcity and expanding digital infrastructure. Areas such as Jamnagar and Thane in India, as well as Reeves County in Texas, illustrate the growing tension between rising data-center demand and the capacity of local water resources.

As the digital economy continues to expand, competition for data-center infrastructure is therefore likely to extend beyond access to electricity, land and telecommunications networks. Water availability and cooling efficiency could become equally important considerations, making resource management a central issue in the future development of the global data-center industry.