AI's Hidden Cost

Artificial intelligence (AI) is creating an unprecedented water crisis. Data centers powering AI systems consumed approximately 17 billion gallons of water in 2023, a figure projected to surge to 68 billion gallons by 2028—a nearly 300 percent increase in just five years.

"Never in the history of this country has demand for water increased so dramatically in such a short time," Klaus Reichardt, CEO of Waterless Co., Inc., says. "This will obviously reshape utility costs."

Why AI Needs So Much Water

Data centers require massive amounts of water to cool the processors running AI systems. Each AI interaction, for example a single ChatGPT query, consumes roughly one-fifth of a teaspoon of water. With ChatGPT alone handling over one billion daily interactions, the scale becomes staggering.

The crisis is compounded by location. Many data centers are built in the country's driest regions to capitalize on solar power, placing enormous strain on already-limited water supplies.

What It Means for You

As demand begins to spike in 2026, water costs are expected to rise dramatically across affected regions. The laws of supply and demand are simple: when billions more gallons are needed annually, price increases will follow.

No industry can operate without water—from cleaning to packaging. This means businesses in all industries should also expect to pay more for water in the coming years.

“Obviously, the owners of these AI data centers know something must be done and quick,” Reichardt shares. “However, it will take time. The best thing we can do right now is use water more efficiently, which is a long-term reduction in water consumption.”