The water demands of China’s data centers are set to soar in the coming years as demand for AI increases.
Hong Kong-based non-profit China Water Risk (CWR) estimates in a new report that water demand could double over the next six years.
CWR estimates China’s data center water consumption to be ~1.3 billion m3 today, but could rise to more than 3bn m3 by 2030.
The company notes the China Academy of Environmental Planning (CAEP) previously found the the number of data center racks in China grew 27 percent from 4.3 million in 2020 to 5.4m in 2021, and expects racks to grow from to 11.3m by 2030.
Total water consumption by data centers in the US isn’t clear, but some research estimates the figure was around 300 million m3 in 2020.
“For the ICT sector, the time to tackle water risks is now – we must get on top of these before the explosion of AI. China’s ICT giants must take the lead to be 'water neutral' or 'water positive' like their Silicon Valley counterparts of Meta and Google,” said report author Debra Tan.
China has been developing major data center markets around its inland western region, but CWR noted many of these provinces, autonomous regions & municipalities are as dry as the Middle East, while many are facing ‘Extremely High’ or ‘High’ water stress.
“Despite rising water use, water supply may fall due to the mismanagement of the increased volatility from extreme weather events as well as a rise in chronic risks such as water scarcity and sea level rise,” said CWR. “While some leading ICT companies have started to map their transition plans, many have yet to formulate comprehensive water risk mitigation and stewardship strategies."
The report adds: "Even those that are aware are likely to be caught off-guard by the fast-evolving water risk landscape due accelerated warming as previous steps to ensure climate resilience may now not be good enough.”
Only 32 percent of China's data center racks are in water-rich regions. CWR said 46 percent are located in ‘Dry 10’ areas, which are as dry as the Middle East. At least 41 percent of racks are said to be located in regions that are highly prone to drought while at least 28 percent are in areas that are highly prone to floods; at least a fifth – in Jiangsu, Shanghai, and Tianjin – are very prone to both.
“Competition for water in the 'Dry 10' will rise and ICT may not be the number one priority as demands from agri, households & industry must also be met,” said CWR.
China has yet to issue national standards for Water Usage Effectiveness (WUE), but local governments are starting to introduce their own; for example, the Shanghai government recommends a WUE of 1.4.
Based on limited public disclosures, Baidu and Xiaomi increased their water consumption in 2021 by 23 percent and 53 percent, respectively. Tencent saw water consumption and water intensity (water consumption per unit of revenue) levels increase 31 percent and 32 percent respectively in 2022.
China Mobile, however, reportedly saw a 17 percent drop in water consumption and a 25 percent decline in water intensity.
CWR recommends companies in China start formulating a water stewardship strategy and aim for water-positive goals.
It also suggests switching from water-cooling to other less water-intensive technologies in water-stressed locations – though acknowledges this can sometimes lead to worse Power Usage Effectiveness (PUE).
