Business EconomyPosted at: Sep 8 2025 1:25PM


AI data centres will drive massive annual water consumption by 2028: Morgan Stanley Report

New Delhi, Sep 8 (UNI) The Artificial Intelligence (AI) boom could soon put heavy pressure on global water resources, with data centres projected to increase their water consumption eleven times by 2028, according to a report by Morgan Stanley.
The report said, “AI data centres will drive annual water consumption for cooling and electricity generation to approximately 1,608 billion litres by 2028 (our base case)- an 11 times increase from 2024 estimates.”
An 'AI data centre' is a specialised and highly advanced facility designed to meet the demanding requirements of artificial intelligence (AI) and machine learning (ML) workloads.
It consumes a massive amount of water primarily for cooling, as the servers and routers inside these facilities generate enormous heat, and to prevent overheating, companies rely on cooling systems.
Morgan Stanley noted that its analysis covered three categories of water use:- direct consumption at data centres, indirect water usage tied to electricity generation, and upstream demand from semiconductor fabrication.
The report also noted that AI’s water use could vary between 637 billion litres and 1,485 billion litres annually by 2028, depending on regional energy mixes, cooling technologies, and efficiency improvements.”
The report also flagged growing concerns about the location of new data centres. More than half of the world’s largest hubs are concentrated in regions facing medium-to-high water stress, raising risks of shortages and local environmental strain.
“More than half of the world’s top data centre hubs are in areas already facing medium basin physical risk (medium level vulnerability) to threats from drought, flooding, and declining water levels,” the report said.
Morgan Stanley is a US-based multinational investment bank and financial services company that provides investment banking, securities, wealth management, and investment management services to corporations, governments, institutions, and individuals worldwide.
UNI SAS ARN
Please log in to get detailed story.
Tags: #AI data centres will drive massive annual water consumption by 2028: Morgan Stanley Report
More News

Tech Mahindra reports 6 1 pc revenue growth, Q1 profit rises 28 4 pc

16 Jul 2026 | 8:39 PM

Hyderabad, July 16 (UNI) Tech Mahindra on Thursday reported a strong performance for the first quarter ended June 30, 2026, with consolidated revenue rising 6.1 per cent year-on-year to USD 1.66 billion, while Profit After Tax (PAT) increased 28.4 per cent year-on-year to Rs 1,465 crore, driven by broad-based growth across key business verticals and sustained margin expansion.

see more..

NABARD balance sheet grows to ₹10 96 lakh crore, disburses ₹1 37 lakh crore in Telangana over 12 years

16 Jul 2026 | 8:29 PM

Hyderabad, July 16 (UNI) National Bank for Agriculture and Rural Development (NABARD) Telangana Chief General Manager B. Uday Bhaskar on Thursday said the institution's balance sheet had grown in size from ₹4,519 crore in 1982 to ₹10.96 lakh crore as of March 2026, reflecting its continued evolution to meet the changing needs of rural India.

see more..

Telangana to leverage India-UK Trade Pact to boost exports: Sridhar Babu

16 Jul 2026 | 8:21 PM

Hyderabad, July 16 (UNI) Telangana IT and Industries Minister D Sridhar Babu on Thursday said the state government is preparing a roadmap to maximise the benefits of the India-UK Comprehensive Economic and Trade Agreement (CETA) and significantly enhance exports to the United Kingdom.

see more..

Jio Financial accelerates full-stack financial push as Q1 profit jumps 156 pc

16 Jul 2026 | 8:05 PM

Mumbai, July 16 (UNI) Jio Financial Services Ltd (JFSL) is rapidly transforming into a full-stack financial services platform, with strong growth across lending, payments, asset management and insurance businesses powering a 156 per cent jump in consolidated profit after tax (PAT) to Rs 830 crore in the first quarter of FY27.

see more..

Trust, governance key to AI's next phase: Industry

16 Jul 2026 | 7:51 PM

Bengaluru, July 16 (UNI) Artificial intelligence (AI) has entered a new phase where the biggest challenge is no longer persuading businesses to adopt the technology, but ensuring it is secure, trustworthy and capable of delivering measurable business outcomes, industry leaders said on AI Appreciation Day.

see more..