Global AI Data Centers May Use 681 Olympic-Sized Pools Of Fresh Water Daily, JPM Predicts
Wall Street banks are currently buzzing about the potential of the next big thing in artificial intelligence (AI) trade, with many investing heavily in 'Powering up America' themes. These include power grid companies, commodities like copper, gold, silver, and uranium, and AI chipmakers. This investment surge is in anticipation of a nationwide boom in generative AI data centers expected to last until the end of the decade and beyond.
JPMorgan Joins the AI Trade
JPMorgan's Asia Pacific Equity Research desk is the latest financial institution to express interest in AI trade, as evidenced by a note titled "Deep Dive into Power, Cooling, Electric Grid and ESG implications." The focus on AI data center power consumption is not new, with several discussions and analysis already available on the subject.
Increased Commercial Power Demand
For instance, there's been a noticeable increase in commercial power demand in Virginia, largely due to the soaring 'Next AI Trade.' High-profile figures like Blackstone CEO Steve Schwarzman and BlackRock Chairman and CEO Larry Fink have also shown interest in the power grid and AI investment theme, anticipating significant growth in the coming years.
Water Consumption by Data Centers
In a note by JPMorgan analyst William Yang and his team, attention was drawn to the water-intensive nature of data center operations. According to data from Bluefield Research, total water consumption by global data centers has grown by 6% annually from 2017 to 2022. By 2030, it's predicted that water consumption could rise to 450 million gallons per day, equivalent to 681 Olympic-sized pools of fresh water needed daily to cool global data centers.
Water Demand and Its Implications
Yang also highlighted that by 2027, global AI demand could account for 4.2 – 6.6 billion cubic meters of water withdrawal, surpassing the total annual water withdrawal of half of the United Kingdom. The high water demand from data centers, especially in areas with scarce water resources, could lead to increased competition and strain water availability, potentially causing data center closures.
Water Usage in Data Centers
A significant portion of water usage in data centers is due to the evaporation of millions of gallons of water daily in cooling systems designed to offset server heat. Interestingly, while crypto miners have received criticism for their power and water consumption, AI data centers are predicted to consume even larger amounts of power and water.
Will There Be Protests Against AI Data Centers?
Despite these alarming predictions, it remains to be seen whether non-governmental organizations or environmental activists like Greta Thunberg will protest against AI data centers.
What's Your Take?
This article presents a thought-provoking perspective on the potential environmental impact of AI data centers. What are your thoughts on this issue? Feel free to share this article with your friends and engage in a discussion. Don't forget to sign up for the Daily Briefing, which is delivered every day at 6pm.
