Artificial intelligence (AI) is undeniably transforming industries, but its environmental impact is increasingly under scrutiny, particularly in the water, sanitation, and drainage sectors. As AI’s popularity surges, so does its demand for water and energy, raising critical questions about sustainability.
Morgan Stanley’s recent research highlights a stark reality: AI data centers could consume approximately 1,068 billion liters of water annually by 2028, an 11-fold increase from 2024 estimates. This alarming projection is driven by the anticipated 8.5-fold expansion of generative AI power. The report also underscores that over half of the world’s top data center hubs are in areas already vulnerable to water-related risks, including drought and declining water quality.
Simultaneously, electricity consumption by data centers is on the rise. The International Energy Agency (IEA) predicts that by 2030, data centers will double their electricity demand to approximately 945 terawatt-hours (TWh), an amount comparable to Japan’s entire current electricity consumption. AI is a significant driver of this growth, with the U.S. alone expected to account for about half of this demand.
Despite these concerns, experts remain optimistic about AI’s potential to aid sustainability outcomes. Tallat Hussain, a partner in Reed Smith’s energy and natural resources group, believes AI can create efficiencies in various industries, including fashion and apparel, outweighing its carbon footprint. “Where AI can contribute positively to that, I think, relatively outweighs the carbon footprint of it,” Hussain explained.
Meera Atreya, director of decarbonization science and EMEA advisory at Carbon Direct, emphasizes the need for responsible deployment of AI. “The same analytical power that drives hyper-personalized marketing can also be applied to optimize manufacturing, reduce waste and improve demand forecasting when deployed responsibly,” Atreya said. However, she cautions against exacerbating overproduction, noting that generative AI could create even more rapid consumer demand cycles, resulting in higher waste.
Saskia Van Gendt, chief sustainability officer at Blue Yonder, agrees that AI holds promise for sustainability but stresses the need for a balanced approach. “It’s important that companies think about AI from the perspective of a balance sheet,” she said. “They need to acknowledge the water and energy use associated with AI systems while matching the technology to pressing sustainability challenges.”
Experts agree that a thorough understanding of AI’s environmental impact is still evolving. Hussain notes that many companies are not yet considering the sustainability ramifications of using AI. “AI, in so many ways, isn’t tangible, so you don’t think of the tangible cost of it,” she said.
As the water, sanitation, and drainage sectors grapple with these challenges, the need for efficient, sustainable AI solutions becomes increasingly apparent. The sector must push for cleaner energy sources, water-efficient data centers, and responsible AI deployment to mitigate environmental impacts. The future of AI in these sectors hinges on balancing innovation with sustainability, ensuring that technological advancements do not come at the cost of our planet’s health.