‘Behind the AI boom’: Data centers consume 20 lakh litres of water daily
The Economic Survey 2025-26 reveals a single AI data centre can consume 20 lakh litres of water daily. It warns that rapid expansion of such infrastructure could stress India's freshwater reserves, suggesting a shift towards smaller, energy-efficient AI models to mitigate environmental risks.
Around 20 lakh litres of water per day
A single AI data centre can consume up to 20 lakh litres of water per day for cooling purposes, a massive environmental footprint.
56,000 Crore Litres Globally
The Survey cites reports stating that globally, data centres consume an estimated 56,000 crore litres of water annually to keep servers cool.
India's Data Paradox
While India generates 20 per cent of the world's data, it currently holds only 3 per cent of global data centre capacity.
Threat to Groundwater
The Survey warns that scaling up AI data centres could add "extraordinary amount of stress" to India's strained groundwater and freshwater reserves.
Energy and Water Nexus
Mark P. Mills is cited noting that the energy used to launch a rocket is consumed every day by just one AI-infused data centre.
Competition for Resources
Investment in AI infrastructure competes directly with households and industries for essential resources like power and water.
The "Frugal" Solution
The Survey suggests India should focus on "small models" that run on local hardware to avoid the high water and energy costs of massive centres.
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