BUILD YOUR OWN
RESOURCE LIBRARY
Opinions
Smart lighting: enabling smart cities beyond illuminationSponsored by Paradox Engineering
How AI and biometrics are shaping next-generation mobility paymentsSponsored by ST Engineering
AI’s water demand to grow 129 per cent by 2050
Report finds AI could add 30 trillion litres of annual water demand, but reuse and infrastructure investments can help offset demand and protect communities.
At a glance
Who: Xylem; Global Water Intelligence.
What: The Watering the New Economy: Managing the Impacts of the AI Revolution report by Xylem and Global Water Intelligence finds expansion of AI is set to drive a 129 per cent increase in water demand across the AI value chain by 2050. It calls for a coordinated “water transition” centred on water reuse, digital infrastructure, and cross-sector partnerships.
Why: By the middle of the century, this expansion is projected to add 30 trillion litres of water demand, annually, fuelled by a surge in power generation. Moreover, nearly 40 per cent of existing data centres are already located in regions experiencing high water stress.
Where: The study is global but highlights water-stressed areas as well as examples of good practice in cities working together such as Mexico City and Monterrey, which collaborated on a smart pipelines project with Amazon and Xylem.
The rapid global expansion of artificial intelligence (AI) is set to drive a 129 per cent increase in water demand across the AI value chain by 2050, according to new research by water solutions company Xylem and Global Water Intelligence (GWI).
The report calls for a coordinated “water transition” centered on water reuse, digital infrastructure, and cross-sector partnerships.
AI infrastructure build-out
Spending on AI is forecast to approach $2 trillion in 2026 according to analyst Gartner, accelerating infrastructure build-out worldwide. By the middle of the century, this expansion is projected to add 30 trillion litres of water demand, annually, fuelled by a surge in power generation (~54 per cent of the increase), semiconductor fabrication (~42 per cent), and data centre expansion (~4 per cent).
Xylem said that the report finds that this additional demand does not have to result in competition between industry and communities. Today, global water systems process roughly 320 trillion liters of wastewater each year and lose an estimated 100 trillion litres through ageing infrastructure – volumes that, if recovered through targeted investment, could substantially offset AI’s projected growth in water use and reduce strain on freshwater resources.
“It’s time for a water transition built on targeted investment and collaboration between industry, utilities, and governments to ensure water systems can support both growth and community resilience”
To ensure water is a resilient foundation for economic growth, rather than a constraint on innovation, Xylem said a water transition is required that is centred on reuse, digital infrastructure, and cross-sector partnerships.
“AI is placing new demands on water supplies, but many of the tools needed to address the challenge already exist,” said Matthew Pine, Xylem’s president and CEO.
“Advanced treatment technologies, for example, allow us to recycle water rather than waste it. Digital systems can help better manage supply in real time, reducing water lost to leaks. It’s time for a water transition built on targeted investment and collaboration between industry, utilities, and governments to ensure water systems can support both growth and community resilience.”
Read More
The analysis also highlights rising geographic risk. Nearly 40 per cent of existing data centres are already located in regions experiencing high water stress, and future growth is expected to concentrate in similarly constrained watersheds. This underscores the need for localised, basin-level solutions, even as global efficiency gains create headroom for growth.
“Our projections examine water use across the full AI value chain – from chip fabrication and data centre operations to indirect demand from power generation – and assess how technology choices shape future demand,” said Christopher Gasson, CEO, Global Water Intelligence.
“The greatest pressure points emerge in semiconductor manufacturing and in fast-growing data centre hubs in the United States, East Asia, and South Asia. In these regions, expanded wastewater reuse, leakage reduction, and targeted infrastructure investment can fully offset future growth.”
The report points to early examples of how collaboration can deliver shared benefits. In Mexico, for example, utilities in Mexico City and Monterrey worked together with Amazon and Xylem on smart pipeline upgrades to reduce leaks. A system of sensors and advanced analytics will save more than 1.3 billion liters of water a year and help improve the reliability of water supplies for residents.
Read the full report here.
Why not try these links to see what our SmartCitiesWorld AI can tell you.
(Please note this is an experimental service)
How can water reuse technologies reduce AI's overall water demand?What role do digital systems play in managing water supply efficiently?How do semiconductor manufacturing processes impact regional water stress?Which infrastructure investments best support water resilience in AI growth?How do cross-sector partnerships improve water management in stressed regions?AI and Machine LearningAI CityXchange - AI FoundationsCloud and edge computingEnergy & EnvironmentMexico Cityresiliencewaterwater
Latest City Profile
SmartCitiesWorld Newsletters (Daily/Weekly)
You may also like these related articles...
BECOME A MEMBER
© 2026 SmartCitiesWorld
Smart Cities World Ltd, 27 Clements Lane, London, EC4N 7AE