Xylem Inc., in partnership with Global Water Intelligence, has published a comprehensive analysis highlighting the significant impact of artificial intelligence $(AI)$ on global water demand. The report forecasts that AI-driven expansion will increase water demand across the AI value chain by 129% by 2050, equating to an additional 30 trillion liters of water annually. The primary drivers are expected to be power generation (54% of the increase), semiconductor manufacturing (42%), and data center growth (4%). The research underscores that nearly 40% of current data centers are already located in regions experiencing high water stress, with future growth likely to concentrate in similarly constrained areas. However, the report emphasizes that targeted investments in water recycling, advanced treatment technologies, digital water management systems, and infrastructure upgrades can offset this surge in demand and help avoid competition between industry and local communities. Xylem calls for a coordinated “water transition” focused on water reuse, digital infrastructure, and cross-sector collaboration to ensure that water supply remains resilient as AI infrastructure continues to expand globally.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Xylem Inc. published the original content used to generate this news brief via Business Wire (Ref. ID: 20260114858723) on January 14, 2026, and is solely responsible for the information contained therein.