AI’s Hidden Water Cost: 73% Of Indian Data Centres Face Water Stress, Study Warns
A new study has found that one in four data centres across the world is located in areas facing water shortages, raising concerns about the growing demand for water as artificial intelligence and digital services expand.
The research found that 2,315 of the 9,347 operational data centres examined are in regions where water demand exceeds renewable supply for at least one month every year.
The study, titled One Quarter of Global Data Centers are Located in Water-Stressed Areas, was published in the peer-reviewed journal Environmental Science & Technology on September 24, 2026.
It was led by Stanford University engineer and hydrologist Lorenzo Rosa, along with Matteo Sangiorgio, Bridget R. Scanlon, Marco Mazzotti, Joseph Berry and Anna M. Michalak.
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For the research, the team used a supercomputer to map 9,347 operational data centres around the world.
The facilities were plotted on grids measuring 50 km by 50 km and compared with the renewable water available in their surrounding areas.
The researchers also considered water consumption by nearby cities, farms, factories and power plants to understand how data centres compete with other users.
The study identifies India, the United Arab Emirates, Spain, China, Japan, Mexico, parts of the United States, the Mediterranean and the Middle East as areas where data centres face water-stress risks.
The UAE and India stand out in the country-level figures: 93% of data centres in the UAE and 73% in India are exposed to at least one month of water gaps annually.
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The findings show that the problem is more serious in some regions. Around 15 per cent of the data centres are located in areas that experience water shortages for at least five months a year.
Nearly six per cent operate in regions facing water deficits for nine to 12 months annually. In such areas, communities and industries may face greater pressure on rivers and groundwater supplies.
The study also points to direct competition between data centres and local communities for water.
Cities and municipal residents are the largest competing water users near 41 per cent of the facilities.
Agriculture is the main competing user near 28 per cent, followed by manufacturing at 18 per cent and power generation at eight per cent.
The United States accounts for 39 per cent of all the data centres included in the study. Of these US facilities, 21 per cent are already located in water-scarce regions.
Climate change could make the situation worse.
Under models that project global temperatures rising by 3°C above pre-industrial levels, the share of data centres facing annual water shortages could increase from 25 per cent to 33 per cent.
This would affect around 3,045 facilities, with most of the newly affected sites located in the United States.
The researchers point out that although data centres use less water globally than agricultural irrigation, their impact can be significant in the areas where they operate.
These facilities run around the clock and cannot easily stop operations during periods of drought, putting additional pressure on local water supplies.
The study recommends taking water availability into account before approving new data centre projects.
It also suggests using treated municipal wastewater or desalinated seawater instead of fresh drinking water for cooling.
Water-free and closed-loop cooling systems could further reduce the amount of water consumed by these facilities.
The American Chemical Society highlighted the research on October 19, while The Washington Post reported on its wider implications on November 9.
As demand for data centres continues to grow, the findings raise questions about how countries can expand digital infrastructure without adding to the water stress faced by local communities.
