Tech companies driving the rapid expansion of artificial intelligence — including Google, Amazon and Microsoft — have in recent weeks stepped up efforts to explain and justify the water use of their data centers. Nvidia, the dominant AI chip maker, said this week that its latest generation of technology could largely address water concerns.
Why this matters
After defending data centers' electricity needs for much of the past year, companies are increasingly emphasizing that their water use is manageable, pointing to water-replenishment projects, recycled-water use and new cooling technologies. At the same time, regulators, local communities and international leaders are pushing for more transparency and limits where water stress is a concern.
Voices in the debate
Peter Gleick, co-founder of the Pacific Institute and a leading U.S. water expert, said the public conversation around water and energy use has forced companies to rethink their practices and increase transparency because of reputational risk tied to large-scale data center rollouts.
Sarah Porter, director of the Kyl Center for Water Policy at Arizona State University, said aggregate water demand projections "are not eyebrow-raising," and that concerns about water often serve as a stand-in for broader anxieties about a fast-developing industry.
Aaron Bilyeu, chief development officer at Cloverleaf Infrastructure, noted growing public opposition to water-intensive cooling: "the court of public opinion has spoken loudly that consuming water for cooling on data centers is no longer an acceptable method."
On the international stage, United Nations Secretary-General António Guterres called this week in London for more transparency on data centers' energy, water and land use and urged major AI firms to measure and disclose the full environmental impact of their systems.
Social tensions and regulatory moves
A Gallup poll in May found roughly 70% of people in the U.S. would oppose data centers in their communities, with water and energy use cited as top concerns. In Virginia — which has the world's highest concentration of data centers — lawmakers moved this week toward restricting the most water-intensive cooling methods.
How much water do data centers actually use? Local vs. aggregate effects
Analysts and industry representatives point out that compared with many other major industries, data centers overall use less water. Cleanview’s analysis of government, industry and academic sources, including a 2024 Lawrence Berkeley National Laboratory study, supports a view that the full water footprint must account for electricity generation tied to data centers.
A Bank of America report estimated that roughly 75% of a data center's total water footprint is associated with electricity generation rather than on-site cooling.
Experts including Gleick and Porter warn that aggregate figures can obscure local impacts: in drought-prone regions, even modest additional demand can be highly contentious. "The important point is: How much water does a data center use in the region where it's taking the water from?" Gleick said.
The energy–water tradeoff
Energy and water are closely — and sometimes inversely — connected. Water-based cooling systems typically use less electricity than air-based systems, creating a tradeoff between water consumption and energy demand. Electricity generation for data centers also requires water if it comes from fossil-fuel or nuclear plants; wind and solar require none.
Historically, water-intensive cooling was favored for its lower energy use and cost, but public opposition to consuming water for cooling is growing.
What companies are doing and what comes next
Google, Amazon and Microsoft have each launched initiatives in recent weeks to explain their water use and highlight mitigation measures such as replenishment projects, recycled-water use and newer cooling technologies. Nvidia has claimed its newest chips can reduce water-related concerns.
Transparency is becoming a key next phase: Microsoft and Google are due to release annual environmental reports in the coming weeks that may shed light on their water use. António Guterres’ call for an AI environmental transparency initiative adds urgency to demands that major AI firms measure and publicly disclose carbon, water and land footprints.
Bottom line
Water use has emerged as a defining battleground in debates over AI infrastructure. Tech firms promote technological and programmatic responses, but local communities, regulators and international institutions are pressing for greater disclosure and limits, especially in water-stressed regions.
