One ChatGPT Prompt Uses Half a Litre of Drinking Water: ESG Concerns Mount as AI Booms

With increased development in artificial intelligence, a new source of worry has made its way into the ESG (Environment, Social, and Governance) limelight: water usage. Recent studies assert that one question on popular generative AI systems such as ChatGPT is capable of consuming up to half a litre of drinking water, sparking concerns about resource competition and climate commitments in the tech industry.

The water is put mainly to use in cooling systems within data centres — the gargantuan warehouses that power AI and store endless streams of digital data. These centres use clean, drinkable water to cool high-performance computing hardware to safe working temperatures extensively. The amounts are staggering: several data centres are reported to use as much water in one day as 1,000 farms or homes.

 Environmental Trade-offs in the AI Boom

This enormous water usage has transformed AI from a climate solution to an environmental sustainability danger. In a paradoxical twist, the same technologies employed to monitor emissions, streamline supply chains, and identify environmental risk are now being questioned for increasing water shortage and energy consumption.

Experts note how the majority of technology companies were blindsided by the boom in AI, more recklessly extrapolating the pace of demand and the ensuing environmental pressures. The result? A number of major corporations are now paring back or resetting their net-zero targets, unable to handle the double challenge of innovation and climate responsibility.

Water Stress: The Next Climate Risk

What makes this issue even more pressing is that AI’s thirst for water might place tech companies in direct competition with local communities—especially in already water-stressed regions. And relocating data centres doesn’t solve the problem; it may simply shift the water burden to new, previously unaffected areas.

Electricity and Heat: The Power-Hungry Side of AI

Water is just half the issue. AI is also a huge energy consumer. Estimates have AI data centers consuming more energy than the whole nation of France. The old air-cooling systems don't cut it anymore, so they are being pushed toward liquid cooling systems that are almost 1,000 times more effective—but which need more advanced infrastructure.

Nations such as Norway are leading the way with creative solutions by routing excess heat from data centres into heating buildings. Not only does it save waste, but it also brings AI infrastructure onto the circular energy economy.

 Hope Through Technology: Closed-Loop Cooling and Renewable Energy

There is a silver lining. A move towards closed-loop cooling systems—that re-use water rather than wasting it—would cut the water footprint of AI dramatically. Meanwhile, technology giants are increasingly powering their operations with renewables such as wind and solar power, cleaning up the electricity that drives AI models.

Although imperfect, they speak to an emerging recognition in the tech sector that it needs to balance quick development of AI with serious climate action.

 AI as Problem and Solution

A carbon-greedy as it is, AI still has huge potential to fight climate change. It's already being applied to:

Catch methane leaks, a highly potent greenhouse gas

Track energy consumption in real time

Cut overproduction and waste

Streamline logistics and supply chains

Even the International Energy Agency (IEA) opines that, if used correctly, AI can use less power than it saves in the long run.

But here's the rub. Hortense Bioy, head of sustainable investing at Morningstar, is warning of the Jevons Paradox—a phenomenon whereby increases in efficiency make for increased overall use, not decreased. With AI, maximizing the efficiency of systems might actually boost overall energy and water consumption, making net-zero ambitions even more challenging.

The Bottom Line: A Double-Edged Sword

The message is clear: AI is not good or bad—it's how we use it. Left to run wild, the tech has the capacity to entrench climate injustice and cut down on international climate action. But with tough ESG standards, increased regulation, and responsible tech innovation, AI could be our greatest driver of sustainable growth.

As we move further into the AI era, companies, investors, and policymakers must ensure that the environmental consequence is given equal importance alongside innovation goals. In this manner, AI can serve only individuals and the planet. 

Source: Citywire Selector