Our Blue Backyard

January 2025: When people think about about artificial intelligence, they usually focus on how it will improve our work and lives. But they almost never talk about water. But according to a recent New York Times article, water is becoming one of the biggest hidden costs of the AI explosion.

In 2020, Microsoft promised to become “water positive” by 2030, meaning it would replenish more water than it used. At the time, that sounded realistic. But the rise of AI has changed everything. Microsoft’s AI data centers require huge amounts of water to cool their servers. According to the article, Microsoft’s water use will increase dramatically by the end of the decade, even as the company continues to promote sustainability goals.

The issue isn’t just how much water is being used, but where. Many new data centers are being built in places that already struggle with drought and water shortages, such as in the American Southwest. When tech companies use these limited water supplies, it strains local communities that depend on the same resources.

Microsoft says it’s investing in more efficient cooling systems and water replenishment projects, but this situation exposes a bigger problem: our current sustainability promises weren’t designed for an AI-driven world.

One solution I propose is the creation of a water offset marketplace. In this system, AI companies that want to expand in water-scarce regions would be required to invest in wastewater recycling and water recovery projects. Just like carbon offsets, water offsets would force companies to directly account for the resources they consume. We have to ensure that technological growth doesn’t come at the cost of basic human needs.