Lakshmee Sharma
Data centers are essential computational infrastructure, powering nearly all of today’s digital activities, especially commerce. Lower- and middle-income countries, eager to capitalize on digital transformation and economic growth, have rushed to build this infrastructure.
But there’s a problem: Data centers are water guzzlers, and many countries are currently expanding their data center footprints while ignoring potential water risks. This trend has already resulted in increased water scarcity in several regions, posing heightened social, political, and ecological risks. Further, the salience of artificial intelligence (AI) as a driver of data center demand is only increasing, as AI’s thirst is projected to rival or soon surpass other water-intensive industries such as cattle and textiles. Transparency about AI’s role in exacerbating data centers’ climate impacts is especially consequential now as climate change worsens and industries continue to push AI-based solutions for societal problems.
However, the international community lacks a clear understanding of data centers’ impacts on water resources, as there are no uniform regulatory requirements for data center operators to track and report their water use. Transparency reporting around data center water use has therefore emerged as a promising policy measure to better assess and limit current and future water stress. Policymakers have a critical window of opportunity to address data center-induced water risks: By promoting transparent water use reporting, policymakers can advance insights into the scale and scope of data center-induced water risks and help develop timely interventions.
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