The AI data centre scale-up is escalating at such a pace that water consumption by these facilities could triple by the end of the decade, says an energy researcher. Rystad Energy estimates that data centres consumed 222 billion litres of water for cooling in 2025, but that consumption could rise to just under 644 billion litres a year by 2030 without gains in water efficiency. That’s the worst case scenario. Rystad estimates that with some improvements, water consumption could be reduced to 543 billion litres. In an aggressive water-saving scenario, it could be cut to 388 billion litres. But that’s not the whole story. “These figures only capture direct cooling-water consumption, while the less visible water footprint embedded in the electricity supply adds another layer of complexity,” said Minh Khoi Le, global head of data center and hydrogen research at Rystad Energy. Data centres use water primarily to remove heat generated by the computers, but how much they use varies significantly depending on the cooling technology and the climate. Dry cooling, such as that proposed for Nvidia Corp.’s Vera Rubin platform, could cut on-site water use by more than two litres for every kilowatt hour (kWh) of IT load, but it requires more electricity. That’s important because is some cases the indirect portion of water consumption used to generate power for data centres can be more than twice that of direct consumption, the study said. Water efficiency technologies also work better in colder climes. Amazon Web Services’s water use varies from 0.02 litres per kWh in Stockholm to 2.85 litres per kWh in Jakarta – “a spread of more than 100 times within one operator’s reporting framework, underscoring how strongly geography and cooling architecture influence the metric.” Amazon, Alphabet Inc. , Microsoft Corp. and Meta Platforms Inc. have set targets to become “water positive” by 2030, aiming to replenish more water than they consume, but regulation is only just starting to emerge and usually stops at reporting, rather than mandating performance, said Rystad. This will become especially important in areas that already experience water shortages. Rystad said regions with high water stress are expected to account for 34 per cent of the data centre sector’s total direct water consumption by 2030. Some of the most vulnerable areas include Jamnagar and Thane in India and Reeves County in Texas. Sign up here to get Posthaste delivered straight to your inbox. So long, technical recession. Canada stormed through the gates in the second quarter, data showed Friday, with gross domestic product jumping 3.3 per cent annualized. What’s more, Statistics Canada revised GDP growth in the first quarter up to 0.3 per cent, meaning that Canada’s economy did not shrink for two straight quarters as previously thought. Unfortunately, there are already signs the momentum won’t last. Statistics Canada’s flash estimate for July suggests GDP was unchanged for the first time in four months, following 0.3 per cent month-to-month growth in June. Economists say much of the gains in the second quarter were temporary, the boost from the FIFA World Cup being the most obvious example. Now renewed trade tensions with the United States threaten to inject another dose of uncertainty into the fragile economy. Read the whole story G20 central bankers and finance heads meet in North Carolina today and tomorrow. Canada’s economy posts fastest growth in three years How can Paul and his wife save tax on their $2-million portfolio? The FP500: Your guide to corporate Canada in 2026 Over the past two decades, the asset management industry has witnessed a massive transformation during which assets have migrated from active to passive approaches. Investing columnist Noah Solomon explains how active versus passive is not an either/or proposition and how the two approaches are not mutually exclusive. Learn more about his three pillars of active management: the characteristics that determine whether an active manager can add value to investors’ portfolios. Interested in energy? The subscriber-only FP West: Energy Insider newsletter brings you exclusive reporting and in-depth analysis on one of the country’s most important sectors. Sign up here. Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at wealth@postmedia.com with your contact info and the gist of your problem and we’ll find some experts to help you out while writing a Family Finance story about it (we’ll keep your name out of it, of course).McLister on mortgages Want to learn more about mortgages? Mortgage strategist Robert McLister’s Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won’t want to miss. Plus check his mortgage rate page for Canada’s lowest national mortgage rates, updated daily. Financial Post on YouTube Visit the Financial Post’s YouTube channel for interviews with Canada’s leading experts in business, economics, housing, the energy sector and more. Today’s Posthaste was written by Pamela Heaven with additional reporting from Financial Post staff and Bloomberg. Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@postmedia.com . Why Trump’s tariff pressure isn’t crushing the Canadian dollarHow Canada could trigger the biggest investment ‘supercycle’ in decades Bookmark our website and support our journalism: Don’t miss the business news you need to know — add financialpost.com to your bookmarks and sign up for our newsletters here
Posthaste: AI boom could triple data centre water consumption this decade, warns energy researcher
