China’s booming data centres and AI advancements could put significant strain on the country’s already scarce water resources, a recent report by the Hong Kong-based think tank China Water Risk has revealed.
The report estimates that Chinese data centres currently consume around 1.3 billion cubic metres of water annually, which is equivalent to the water usage of 26 million people for residential purposes. By 2030, this figure is projected to more than double, reaching over 3 billion cubic metres due to the anticipated increase in data facility openings.
This surge in water consumption can be attributed to the direct cooling requirements of data centres to prevent equipment overheating, as well as the indirect consumption associated with coal-powered electricity generation. In addition, the rapid growth of artificial intelligence (AI) technologies, particularly generative AI, is expected to further intensify water demands from the information and communication technology (ICT) industry.
One striking finding highlighted in the report is the considerable water consumption associated with AI chatbots. Researchers found that it takes 20 times more water to sustain a conversation with an AI chatbot, such as GPT-3, compared to running multiple Google searches. The report emphasizes that as the user base for chatbots continues to expand, leading Chinese tech companies like Baidu, Tencent, and Alibaba are likely to contribute significantly to the uptick in water usage.
With almost half of China’s data centre racks located in water-scarce regions akin to the Middle East, the urgency to address this growing water risk is paramount. The report urges corporates and financial institutions to evaluate and mitigate climate and water risks proactively, emphasizing the importance of enhancing energy and water efficiency to combat water scarcity.
It also calls for the adoption of strategies like watershed restoration, water reuse, and rainwater collection to minimize and offset water usage. Encouraging Chinese ICT giants to strive for water neutrality or positivity, akin to their Silicon Valley counterparts, the report highlights the importance of integrating water risk management into corporate strategies to navigate the evolving landscape of AI and data centre expansion.
As the Chinese government moves towards implementing stricter regulations and standards for the ICT sector, including measures to manage river basins holistically, the report underscores the critical need for concerted efforts to ensure sustainable water usage across the rapidly evolving data and AI landscape.
