AI companies like OpenAI, Google DeepMind, Microsoft AI, Anthropic, and xAI are consuming billions of gallons of water per year.
According to a new report by the United Nations University Institute for Water, Environment and Health (UNU-INWEH), AI is expected to use so much water by 2030 that the amount could match the basic yearly water needs of 1.3 billion people.
Data centers that power AI require huge amounts of water to cool servers and support their operations.
Lead author Miriam Aczel said researchers were surprised that some energy options that look environmentally friendly from a carbon perspective can actually be worse for water resources.
The report warns that focusing only on carbon emissions could create the false impression that renewable energy makes AI infrastructure completely sustainable.
Data centers use water-based cooling systems like evaporative cooling towers to keep systems cool.
The report says AI's environmental impact is already being felt around the world, not just in future projections.
Researchers warn that this level of water consumption can be dangerous for regions already struggling with drought and water shortages.