In this new industrial revolution, artificial intelligence is increasing water and energy demands exponentially. Smart water management can help companies navigate complexity with resilience, sustainability and profitability front of mind.

The challenge is easy to explain. The rise of artificial intelligence has created exponential growth for data centres, with U.S. demand expected to grow from 25 GW in 2024 to more than 80 GW by 2030, according to McKinsey. Few people outside the tech industry realize that every AI query, every microchip and every server has a real-world footprint — and these footprints are rapidly expanding.

In short order, AI has dramatically impacted local water systems and energy grids. Data centres contain complex computing hardware that generates significant amounts of heat, and advanced cooling technologies are required for operations. While many cooling methods exist, water-based methods are 23.5 times more efficient than air-cooled methods.

Ecolab is seeing the pressure that data centre customers face firsthand. Data centres are popping up quickly and need to navigate complex resource requirements to scale their operations. Ecolab helps its customers understand that water is more than a utility issue — it’s a business-critical risk for future growth. Furthermore, companies face mounting pressure to act responsibly for more than profitability — prioritizing the needs of surrounding communities.

“Artificial intelligence is booming everywhere. We love its transformational power, but it’s using a lot of water and energy,” said Nevin Sant, global vice president of Research and Development, Light Industries, Ecolab. “We have an urgent challenge to integrate smart water management solutions and cooling efficiency into data centre operations now — addressing both direct and indirect power and water use — or we’ll be faced with serious consequences in the future.”

Cooling is crucial

Cooling efficiency is an immediate lever companies can use to reduce energy demand linked to AI growth. Ecolab’s approach focuses on helping customers optimise cooling loops, monitor coolant performance and manage system energy load through innovation. The goal is to apply chemistry, digital, monitoring innovation and on-site expertise to drive resilient operations and profitable growth while managing escalating water and energy needs. 

“Cooling efficiency is the biggest factor we are focused on right now. Managing thermal demand is critical to control total power and water consumption,” Nevin Sant said. “We’re rolling out an innovation strategy including coolant, digital and monitoring processes along with our onsite services to help companies address cooling efficiency and better position themselves to manage energy demands.”

Ecolab uses an outcome-based approach to help data centre customers. By applying innovative coolant programmes, real-time monitoring technologies that are lock and key with coolants, on-site global service and expertise, Ecolab helps data centre operators maintain uptime through reliable cooling. 

Optimized cooling systems can have an outsized impact on operations. Ecolab’s goal is to help reduce cooling power, returning as much power as possible back to compute. This power can be used for the core purpose of the data centre — running servers and AI models. With growing power constraints, every watt matters.

Constrained power availability

Access to power is also a top concern. McKinsey projects that data centre electricity demands are expected to grow to about three times higher by the end of the decade. They could account for 11–12% of total U.S. power demand by 2030, up from 3–4% today.

“Most companies don’t have a clear power generation strategy. There is simply not enough power. They are scrambling to mitigate the issue by turning to large-scale renewable projects, like solar, or returning to nuclear energy,” Nevin Sant explained. “This is not a looming threat — this scenario is happening now.”

Like many industries, data centres can look at water and energy together as interconnected levers. Ecolab helps its customers take a circular approach to managing water and energy efficiency. There are often opportunities to reduce, reuse and reclaim water while preserving the quality needed for system uptime and reliable performance. By managing water in a circular way, data centres can minimise resource intensity while still prioritizing business growth goals.

Impacts across industries

Suppliers throughout the technology value chain will be affected by AI’s resource demands. The competition for water, energy and infrastructure is already driving up costs for companies in most industries. “Companies are trying to figure out how to keep up, but at some point, we’re going to plateau —and those who waited will be stuck,” Sant said. “They’ll be locked into infrastructure that wasn’t designed for efficiency, and it’ll cost a lot more to retrofit it later. That’s why the time to act is now.”

Ecolab’s smart water management approach can help companies get a head start on the challenge. By collaborating with experts who understand the AI-water-energy nexus, companies can optimise operations and address sustainability while prioritizing productivity and profitability. The future of water management demands a mix of tools that include active monitoring, advanced chemistries, industrial know-how — and even AI itself. “There’s no reason to wait. The sooner we can get ahead of this, the better positioned companies will be,” Sant said.