Dubai, UNITED ARAB EMIRATES — A global rush for the next wave of generative artificial intelligence is increasing public scrutiny on an often-overlooked but critically important environmental issue: Big Tech’s expanding water footprint.
Tech giants, including the likes of Microsoft and Alphabet-owned Google, have recently reported a substantial upswing in their water consumption and researchers say one of the main culprits is the race to capitalize on the next wave of AI.
Shaolei Ren, a researcher at the University of California, Riverside, published a study in April investigating the resources needed to run buzzy generative AI models, such as OpenAI’s ChatGPT.
Ren and his colleagues found that ChatGPT gulps 500 milliliters of water (roughly the amount of water in a standard 16-ounce bottle) for every 10 to 50 prompts, depending on when and where the AI model is deployed.
The study’s authors warned that if the growing water footprint of AI models is not sufficiently addressed, the issue could become a major roadblock to the socially responsible and sustainable use of AI in the future.
People take part in a protest called by Uruguay’s Central Union (PIT-CNT) in “defense of water” against the handling of the national authorities with respect to the management of the shortage of drinking water reserves in Montevideo on May 31, 2023.
Eitan Abramovich | Afp | Getty Images
ChatGPT creator OpenAI, part owned by Microsoft, did not respond to a request to comment on the study’s findings.
“In general, the public is getting more knowledgeable and aware of the water issue and if they learn that the Big Tech’s are taking away their water resources and they are not getting enough water, nobody will like it,” Ren told CNBC via videoconference.
“I think we are going to see more clashes over the water usage in the coming years as well, so this type of risk will have to be taken care of by the companies,” he added.
‘A hidden cost’
Data centers are part of the lifeblood of Big Tech — and a lot of water is required to keep the power-hungry servers cool and running smoothly.
In July, protesters took to the streets of Uruguay’s capital to push back against Google’s plan to build a data center. The proposal sought to use vast quantities of water at a time when the South American country was suffering its worst drought in 74 years.
Google reportedly said at the time the project was still at an exploratory phase and stressed that sustainability remained at the heart of its mission.
With AI, we’re seeing the classic problem with technology in that you have efficiency gains but then you have rebound effects with more energy and more resources being used.
Somya Joshi
Head of division: global agendas, climate and systems at SEI
In Microsoft’s latest environmental sustainability report, the U.S. tech company disclosed that its global water consumption rose by more than a third from 2021 to 2022, climbing to nearly 1.7 billion gallons.
It means that Microsoft’s annual water use would be enough to fill more than 2,500 Olympic-sized swimming pools.
For Google, meanwhile, total water consumption at its data centers and offices came in at 5.6 billion gallons in 2022, a 21% increase on the year before.
Both companies are working to reduce their water footprint and become “water positive” by the end of the decade, meaning that they aim to replenish more water than they use.
It’s notable, however, that their latest water consumption figures were disclosed before the launch of their own respective ChatGPT competitors. The computing power needed to run Microsoft’s Bing Chat and Google Bard could mean significantly higher levels of water use over the coming months.
“With AI, we’re seeing the classic problem with technology in that you have efficiency gains but then you have rebound effects with more energy and more resources being used,” said Somya Joshi, head of division: global agendas, climate and systems at the Stockholm Environment Institute.
“And when it comes to water, we’re seeing an exponential rise in water use just for supplying cooling to some of the machines that are needed, like heavy computation servers, and large-language models using larger and larger amounts of data,” Joshi told CNBC during the COP28 climate summit in the United Arab Emirates.
“So, on one hand, companies are promising to their customers more efficient models … but this comes with a hidden cost when it comes to energy, carbon and water,” she added.
How are tech firms reducing their water footprint?
A spokesperson for Microsoft told CNBC that the company is investing in research to measure the energy and water use and carbon impact of AI, while working on ways to make large systems more efficient.
“AI will be a powerful tool for advancing sustainability solutions, but we need a plentiful clean energy supply globally to power this new technology, which has increased consumption demands,” a spokesperson for Microsoft told CNBC via email.
“We will continue to monitor our emissions, accelerate progress while increasing our use of clean energy to power datacenters, purchasing renewable energy, and other efforts to meet our sustainability goals of being carbon negative, water positive and zero waste by 2030,” they added.
Aerial view of the proposed site of the Meta Platforms Inc. data center outside Talavera de la Reina, Spain, on Monday, July 17, 2023. Meta is planning to build a 1 billion ($1.1 billion) data center which it expects to use about 665 million liters (176 million gallons) of water a year, and up to 195 liters per second during “peak water flow,” according to a technical report.
Paul Hanna | Bloomberg | Getty Images
Separately, a Google spokesperson told CNBC that research shows that while AI computing demand has dramatically increased, the energy needed to power this technology is rising “at a much slower rate than many forecasts have predicted.”
“We are using tested practices to reduce the carbon footprint of workloads by large margins; together these principles can reduce the energy of training a model by up to 100x and emissions by up to 1000x,” the spokesperson said.
“Google data centers are designed, built and operated to maximize efficiency – compared with five years ago, Google now delivers around 5X as much computing power with the same amount of electrical power,” they continued.
“To support the next generation of fundamental advances in AI, our latest TPU v4 [supercomputer] is proven to be one of the fastest, most efficient, and most sustainable ML [machine leanring] infrastructure hubs in the world.”
An Amazon worker moves boxes on Amazon Prime Day in the East Village of New York City, July 11, 2023.
Spencer Platt | Getty Images
Amazon is extending its Prime Day discount bonanza, announcing that the annual sale will run four days this year.
The 96-hour event will start at 12:01 a.m. PT on July 8, and continue through July 11, Amazon said in a release.
For the first time, the company will roll out themed “deal drops” that change daily and are available “while supplies last.” Amazon has in recent years toyed with adding more limited-run and invite-only deals during Prime Day events to create a feeling of urgency or scarcity.
Amazon launched Prime Day in 2015 as a way to secure new members for its $139-a-year loyalty program, and to promote its own products and services while providing a sales boost in the middle of the year. In 2019, the company made Prime Day a 48-hour event, and it’s since added a second Prime Day-like event in the fall.
Prime Day is also a significant revenue driver for other retailers, which often host competing discount events.
Illustration of the SK Hynix company logo seen displayed on a smartphone screen.
Sopa Images | Lightrocket | Getty Images
Shares in South Korea’s SK Hynix extended gains to hit a more than 2-decade high on Tuesday, following reports over the weekend that SK Group plans to build the country’s largest AI data center.
SK Hynix shares, which have surged almost 50% so far this year on the back of an AI boom, were up nearly 3%, following gains on Monday.
The company’s parent, SK Group, plans to build the AI data center in partnership with Amazon Web Services in Ulsan, according to domestic media. SK Telecom and SK Broadband are reportedly leading the initiative, with support from other affiliates, including SK Hynix.
SK Hynix is a leading supplier of dynamic random access memory or DRAM — a type of semiconductor memory found in PCs, workstations and servers that is used to store data and program code.
The company’s DRAM rival, Samsung, was also trading up 4% on Tuesday. However, it’s growth has fallen behind that of SK Hynix.
On Friday, Samsung Electronics’ market cap reportedly slid to a 9-year low of 345.1 trillion won ($252 billion) as the chipmaker struggles to capitalize on AI-led demand.
SK Hynix, on the other hand, has become a leader in high bandwidth memory — a type of DRAM used in artificial intelligence servers — supplying to clients such as AI behemoth Nvidia.
A report from Counterpoint Research in April said that SK Hynix had captured 70% of the HBM market by revenue share in the first quarter.
This HBM strength helped it overtake Samsung in the overall DRAM market for the first time ever, with a 36% global market share as compared to Samsung’s 34%.
OpenAI has been awarded a $200 million contract to provide the U.S. Defense Department with artificial intelligence tools.
The department announced the one-year contract on Monday, months after OpenAI said it would collaborate with defense technology startup Anduril to deploy advanced AI systems for “national security missions.”
“Under this award, the performer will develop prototype frontier AI capabilities to address critical national security challenges in both warfighting and enterprise domains,” the Defense Department said. It’s the first contract with OpenAI listed on the Department of Defense’s website.
Anduril received a $100 million defense contract in December. Weeks earlier, OpenAI rival Anthropic said it would work with Palantir and Amazon to supply its AI models to U.S. defense and intelligence agencies.
Sam Altman, OpenAI’s co-founder and CEO, said in a discussion with OpenAI board member and former National Security Agency leader Paul Nakasone at a Vanderbilt University event in April that “we have to and are proud to and really want to engage in national security areas.”
OpenAI did not immediately respond to a request for comment.
The Defense Department specified that the contract is with OpenAI Public Sector LLC, and that the work will mostly occur in the National Capital Region, which encompasses Washington, D.C., and several nearby counties in Maryland and Virginia.
Meanwhile, OpenAI is working to build additional computing power in the U.S. In January, Altman appeared alongside President Donald Trump at the White House to announce the $500 billion Stargate project to build AI infrastructure in the U.S.
The new contract will represent a small portion of revenue at OpenAI, which is generating over $10 billion in annualized sales. In March, the company announced a $40 billion financing round at a $300 billion valuation.
In April, Microsoft, which supplies cloud infrastructure to OpenAI, said the U.S. Defense Information Systems Agency has authorized the use of the Azure OpenAI service with secret classified information.