Posthaste: AI boom could triple data centre water consumption this decade, warns energy researcher

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeNewsPosthaste: AI boom could triple data centre water consumption this decade, warns energy researcherData centres could suck up 644 billion litres a year without gains in water efficiencyServers stand inside a data centre in northern France. Rystad Energy estimates that data centres consumed 222 billion litres of water for cooling in 2025. Photo by Sameer Al-DOUMY / AFP via Getty ImagesTHIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe AI data centre scale-up is escalating at such a pace that water consumption by these facilities could triple by the end of the decade, says an energy researcher.Rystad Energy estimates that data centres consumed 222 billion litres of water for cooling in 2025, but that consumption could rise to just under 644 billion litres a year by 2030 without gains in water efficiency.That’s the worst case scenario. Rystad estimates that with some improvements, water consumption could be reduced to 543 billion litres. In an aggressive water-saving scenario, it could be cut to 388 billion litres.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againBut that’s not the whole story.“These figures only capture direct cooling-water consumption, while the less visible water footprint embedded in the electricity supply adds another layer of complexity,” said Minh Khoi Le, global head of data center and hydrogen research at Rystad Energy.Data centres use water primarily to remove heat generated by the computers, but how much they use varies significantly depending on the cooling technology and the climate.Dry cooling, such as that proposed for Nvidia Corp.’s Vera Rubin platform, could cut on-site water use by more than two litres for every kilowatt hour (kWh) of IT load, but it requires more electricity.That’s important because is some cases the indirect portion of water consumption used to generate power for data centres can be more than twice that of direct consumption, the study said.Water efficiency technologies also work better in colder climes.Amazon Web Services’s water use varies from 0.02 litres per kWh in Stockholm to 2.85 litres per kWh in Jakarta – “a spread of more than 100 times within one operator’s reporting framework, underscoring how strongly geography and cooling architecture influence the metric.”Amazon, Alphabet Inc., Microsoft Corp. and Meta Platforms Inc. have set targets to become “water positive” by 2030, aiming to replenish more water than they consume, but regulation is only just starting to emerge and usually stops at reporting, rather than mandating performance, said Rystad.This will become especially important in areas that already experience water shortages.Rystad said regions with high water stress are expected to account for 34 per cent of the data centre sector’s total direct water consumption by 2030.Some of the most vulnerable areas include Jamnagar and Thane in India and Reeves County in Texas.Sign up here to get Posthaste delivered straight to your inbox.Canada stormed through the gates in the second quarter, data showed Friday, with gross domestic product jumping 3.3 per cent annualized.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.What’s more, Statistics Canada revised GDP growth in the first quarter up to 0.3 per cent, meaning that Canada’s economy did not shrink for two straight quarters as previously thought.Unfortunately, there are already signs the momentum won’t last.Statistics Canada’s flash estimate for July suggests GDP was unchanged for the first time in four months, following 0.3 per cent month-to-month growth in June.Economists say much of the gains in the second quarter were temporary, the boost from the FIFA World Cup being the most obvious example. Now renewed trade tensions with the United States threaten to inject another dose of uncertainty into the fragile economy.G20 central bankers and finance heads meet in North Carolina today and tomorrow.Over the past two decades, the asset management industry has witnessed a massive transformation during which assets have migrated from active to passive approaches.Investing columnist Noah Solomon explains how active versus passive is not an either/or proposition and how the two approaches are not mutually exclusive.Learn more about his three pillars of active management: the characteristics that determine whether an active manager can add value to investors’ portfolios.Interested in energy? The subscriber-only FP West: Energy Insider newsletter brings you exclusive reporting and in-depth analysis on one of the country’s most important sectors.Are you worried about having enough for retirement? Do you need to adjust your portfolio? 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Plus check his mortgage rate page for Canada’s lowest national mortgage rates, updated daily.Financial Post on YouTubeVisit the Financial Post’s YouTube channel for interviews with Canada’s leading experts in business, economics, housing, the energy sector and more.Today’s Posthaste was written by Pamela Heaven with additional reporting from Financial Post staff and Bloomberg.Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@postmedia.com.Bookmark our website and support our journalism: Don’t miss the business news you need to know — add financialpost.com to your bookmarks and sign up for our newsletters hereNotice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.