AI Industry’s Growth Raises Concerns Over Water Use, Report Says

As the artificial intelligence industry booms, a new report by JPMorgan Chase and ERM warns that this rapid growth is putting added pressure on America’s water resources. Released on Oct. 28, the report highlights the impact of AI-driven data centers and semiconductor production on the nation’s already stressed water supply.

Data centers, which use millions of gallons of water daily for cooling, have seen a surge in demand due to AI. Semiconductor manufacturing, another water-intensive process, supports this industry but also produces toxic wastewater. Together, these industries consumed over 75 billion gallons of water in 2023, with about 20% coming from areas experiencing water shortages.

The report urges increased funding for water infrastructure, noting a shortfall of $91 billion annually to meet growing demands. Suggested measures include water-saving innovations, such as waterless cooling systems and advanced wastewater recycling to support semiconductor manufacturing.

JPMorgan warns that these industries’ growth, combined with population increases in dry regions, could lead to water shortages affecting both ecosystems and communities. The AI industry may be on the cutting edge, but sustainable water management practices will be essential to mitigate its environmental impact.

Increased investment and innovative technology will be vital for balancing AI’s growth with America’s water needs.