How water can unleash growth in the era of AI

The world is on the cusp of unprecedented growth: artificial intelligence (AI) is reshaping industries, global populations are increasing, and demand for energy and natural resources – including water – is accelerating.

By 2050, the world will have 30% more people who will need 47% more energy. At the same time, the world faces a 56% freshwater deficit by 2030, which could have a significant impact on businesses as well as individuals.

When it comes to business, performance is everything and water will become increasingly vital for operations. Yet the freshwater gap isn’t a challenge to fear; it’s an opportunity to lead – but only if we act boldly and act now.

Water is the foundation of life and business. Every breakthrough, every industry, every life depends on it. Yet all the freshwater on Earth would fit inside a bubble just 35 miles wide – the size of Los Angeles. And the pressure on our water resources is only growing with the rise of AI.

AI’s annual power use is projected to rival India's and its water use will match the annual drinking water needs of the United States by 2030, Ecolab analysis shows. Every new data centre and semiconductor fab adds pressure to a resource that is already stretched thin.

These facilities do not just need power; they need water to enable that power. Power generates heat and to keep servers from overheating water is used in cooling systems to maintain safe operating temperatures for racks and chips.

Semiconductor manufacturing adds another layer of complexity because it requires ultra-pure water – 1,000 times cleaner than pharmaceutical-grade water – to produce the chips that power our future. Water is the hidden link between power and performance in data centres.

AI is transforming industries and promises extraordinary progress, but it cannot thrive without water. If we fail to address water scarcity, the promise of AI and the growth it drives will stall.

We can’t create more water. But we can reimagine and re-engineer how we use it.

Today, less than 12% of industrial wastewater is reused. In microelectronics, that number is even smaller. Wastewater isn’t inevitable; it’s an engineering flaw. Every gallon discharged is a missed opportunity for growth, resilience and sustainability.

Circular water solutions where water is treated, reused and recirculated – just as nature has done for billions of years – are the answer. Circularity reduces operational costs, saves energy and strengthens performance. Up to 75% of a production plant’s energy use is tied to water management, according to research by Ecolab. So, when we save water, we save energy and we unlock more value.

And consumers agree. Our latest Ecolab Watermark Study shows that while most people understand AI’s power demands, far fewer recognize its water footprint. In the United States, only 46% of consumers acknowledge the water required to operate AI, compared to 55% who recognize its power use.

A majority believe smart water management, such as reusing or recycling water, should be a top priority for businesses. Yet confidence that companies and governments are doing enough remains low, with belief hovering around 40% across most regions.

This trust gap is clear. Consumers expect transformative technologies and transparent action. Businesses that deliver both will earn trust, drive innovation and unlock growth.

The good news? Just 150 companies influence one-third of the world’s water use and that means real impact is within reach. At Ecolab, we’ve seen what’s possible when businesses embrace circularity:

These are proof points that, alongside environmental benefits, circular solutions can scale and deliver measurable results: lower costs, stronger performance and reduced risk.

Ambitious goals matter, but only when they deliver real, measurable impact. Today, companies face growing pressure to reduce risk, control costs and drive results across every operation. The question is: How do you scale success beyond one site or pilot?

Ecolab’s Best-in-Class (BiC) programme is the answer. It’s a proven framework that turns ambition into enterprise-wide action. By benchmarking performance across sites, identifying clear leaders and replicating what works, BiC creates a roadmap for operational excellence that makes every location your best location.

At the heart of BiC are circular water solutions – strategies that recover, reuse and optimize water to reduce dependency and strengthen resilience. Combined with data-driven insights, advanced digital tools and deep operational expertise, these solutions help companies achieve peak efficiency while cutting costs and mitigating risk.

The impact speaks for itself: greater efficiency, stronger business performance and a smaller environmental footprint. For businesses, this means improved margins and resilience. For communities and ecosystems, it means less strain on shared resources and progress towards long-term water security.

Best-in-Class makes success predictable and repeatable. It transforms ambition into action and operational excellence into environmental progress – delivering results where they matter most.

By 2030, the freshwater gap threatens to disrupt supply chains, raise costs and put communities at risk. The only path forward is sustainable growth – and that starts with water.

Circularity is no longer optional; it’s a strategic imperative. Companies that act now will lead, while those that wait will fall behind.

Working together to reduce water loss, we can help unlock growth and positive impact while building a thriving tomorrow for everyone.