AI Boom Spurs Water Concerns Amid Infrastructure Shortfalls

A new report from JPMorgan Chase and ERM has raised concerns about the impact of artificial intelligence on America’s water supply. The report, released Oct. 28, warns that the AI industry’s rapid growth is straining water resources, particularly in areas already facing shortages.

As AI technologies like data centers and semiconductor manufacturing expand, their water needs increase. Data centers consume substantial water for cooling servers, and semiconductor production, which supplies the chips powering AI, uses significant water and produces hazardous wastewater.

According to JPMorgan, data centers in the U.S. used over 75 billion gallons of water in 2023, with 20% coming from stressed water sources. The report notes that these industries risk straining water supplies for surrounding communities and wildlife, calling for better water management to avoid future shortages.

The report also highlights a funding gap in America’s water infrastructure, which needs an estimated $91 billion annually. Without investment, these resources could face even greater strain as the population grows and industries expand in warmer, arid regions.

To address these challenges, JPMorgan suggests exploring innovative technologies like waterless cooling and recycling wastewater in semiconductor manufacturing. These solutions could help reduce water usage and waste, easing the burden on local water supplies.

As AI’s demand for water continues to grow, sustainable water practices may become a priority to ensure the stability of water supplies for both industrial and public needs.