Archive · 24 Dec 2025
AI's Growing Energy and Water Demands
AI is becoming a big part of our lives, but it needs a lot of energy and water to work.
The computers that run AI, called data centres, use lots of electricity and water to stay cool.
This is causing problems because these data centres are often built in places where there isn't enough water or electricity.
In India, the government is trying to figure out how to manage this.
They need to make sure there is enough clean energy and water for these data centres without hurting the environment or the people who need these resources.
Some companies are trying to use nuclear power and recycled water to help, but there are still many challenges to solve.
AI data centres require continuous, high-load electricity and significant water for cooling.
Global data centre electricity consumption is expected to rise to 945 TWH by 2030.
AI infrastructure may soon consume 6 times Denmark's annual water use.
India's data centre capacity is expected to reach 2.5 GW by 2027, intensifying grid strain.
India lacks a comprehensive national data centre policy, with fragmented state-level policies focusing on investment incentives rather than sustainability.
- Who
- AI industry, tech giants, governments, and regulatory bodies
- What
- Growing energy and water demands of AI data centres
- When
- Current and projected future
- Where
- Globally, with a focus on India
- Why
- AI data centres require continuous, high-load electricity and significant water for cooling
- Global Data Centre Electricity Consumption
- Expected to rise to 945 TWH by 2030
- Water Consumption for AI
- AI infrastructure may soon consume 6 times Denmark's annual water use
- Water Usage per Data Centre
- 100 megawatt data centre consumes 2 million litres of water daily
- India's Data Centre Capacity
- Expected to reach 2.5 GW by 2027
- Coal-Based Energy in India
- Coal remains the prominent stabiliser for grid-supporting data centre clusters
- Non-Fossil Fuel Capacity in India
- 235.7 GW of total capacity
- Data Centre Policy in India
- Lacks a comprehensive national policy; Draft Centre Policy 2020 not implemented
- Energy Efficiency Rules
- No compulsory energy efficiency rules; most standards are voluntary