Microsoft’s ambition to save water is coming under pressure due to the rapid growth of AI. Internal estimates show that the company’s water consumption will increase significantly by 2030 due to the expansion of data centers, including in locations where water availability is already a concern.
The development was reported by The New York Times. In 2020, Microsoft President Brad Smith announced that the company would reduce its water consumption and even become “water positive” by 2030. This means that Microsoft would replenish more water than it consumes. At the time, this goal seemed achievable, but the rapid rise of generative AI has completely changed the playing field. The construction of new data centers has accelerated, and with it the need for water for cooling.
According to internal estimates made last year, Microsoft’s global water consumption could reach 28 billion liters per year by 2030, more than three times as much as in 2020. After questions from journalists, the company revised those figures. Thanks to more efficient designs and new cooling techniques, Microsoft now expects to use around 18 billion liters. That is still an increase of about 150 percent in ten years. It should be noted that recent investments of tens of billions of dollars in new data center capacity are not included in these figures.
It is striking that a large part of the water consumption takes place in areas that already suffer from structural drought or water shortages. In the Jakarta region, where land subsidence and depleted groundwater aquifers are a major problem, Microsoft initially predicted a fourfold increase in water consumption. That estimate was later lowered, without the company explaining exactly why. In the Phoenix area, which has been experiencing drought for decades, Microsoft remains one of the largest industrial water users, despite adjustments such as running data centers at higher temperatures.
AI industry requires a lot of raw materials
The increasing demand for water is not a problem exclusive to Microsoft. AI is transforming the entire technology sector into an industry that requires more and more physical raw materials. Data centers were relatively invisible for a long time, but are now becoming a crucial layer of infrastructure with a significant environmental impact. Researchers expect that water consumption by data centers in the United States could quadruple within a few years compared to 2022.
There is also internal criticism within Microsoft. Former employees indicate that the choice of data center locations was primarily based on speed, cost, and access to electricity. Water often only came into the picture later. According to them, the fact that water has historically been cheap and therefore felt less urgent than energy consumption played a role.
Microsoft emphasizes that it works with local water companies and invests in infrastructure and restoration projects, such as protecting wetlands and reducing leaks in existing water systems. Nevertheless, the company acknowledges that it is difficult to find enough projects that can actually replenish water, especially in regions where the pressure is greatest.
In addition, indirect water consumption often remains out of sight. Power plants that supply electricity to data centers also use large amounts of water for cooling. When this is taken into account, the total water footprint of AI data centers may be significantly higher than companies currently report.