AI development sparks water and utility concerns

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AMWA urges national AI plan to assess water usage impacts.
Next 100 Coalition warns fast-tracked AI sites may raise utility rates.
AI data centers use millions of gallons of water daily.
Communities demand environmental reviews and fair rate structures.

Wednesday, April 30, 2025 — As the federal government moves to rapidly expand artificial intelligence (AI) infrastructure across the U.S., water utilities and environmental groups are sounding the alarm over the hidden consequences of that growth—particularly the strain it could place on water supplies, utility costs, and community health.

On March 14, 2025, the Association of Metropolitan Water Agencies (AMWA) submitted formal comments to the White House Office of Science and Technology Policy and the National Science Foundation, urging them to incorporate water resource impacts into the national AI Action Plan. The letter emphasizes the dual role AI plays in the water sector—as both a potential burden and a solution.

“AI presents both challenges and opportunities for water utilities,” said AMWA CEO Tom Dobbins, CAE. “As AI-driven industries expand, we must account for increased water demands in data centers, manufacturing, and technology, while harnessing AI’s potential to optimize utility operations, improve leak detection, and enhance water conservation efforts.”

AMWA recommends a full assessment of AI’s water footprint, proactive collaboration between AI developers and water managers, and strategic use of AI tools to support conservation and operational efficiency. The organization, which represents major public drinking water systems serving more than 160 million people, stresses that water resource planning must keep pace with AI’s rapid expansion.

Communities Push Back Against Federal AI Infrastructure Order.

Later, on April 29, 2025, the Next 100 Coalition—joined by eight allied organizations—issued a warning about a separate federal initiative that could accelerate construction of AI data centers on U.S. Department of Energy (DOE) lands. The DOE is pursuing this action under President Trump’s Executive Order 13859, calling for “rapid data center construction” at 16 federally managed sites before the end of 2025.

The Coalition argues that the fast-tracked process risks sidelining communities, increasing household utility costs, and straining already scarce water resources. “This isn’t about resisting technology, it’s about making sure communities aren’t left behind in the race for AI,” said Chela Garcia Irlando, Executive Director of the Next 100 Coalition.

Their joint letter calls for the DOE to slow down, engage in meaningful consultation with frontline communities, and halt expedited development until full environmental reviews are completed. Of particular concern are the potential impacts on water systems, air quality, and ratepayer costs—especially where energy-hungry data centers are paired with high-risk power sources such as fossil fuels or small modular nuclear reactors.

Water and Energy Demands at Odds with Public Interests.

A recent report from Harvard Law School’s Electricity Law Initiative, Extracting Profits from the Public, examined nearly 50 regulatory proceedings and found that utilities are increasingly offering discounted energy rates to large tech firms—shifting infrastructure costs onto ordinary households. The study highlighted the financial burden being placed on the public as utilities prioritize lucrative AI and tech partnerships.

“Most Americans don’t realize they may be subsidizing AI expansion through their energy and water bills,” Garcia Irlando warned. “That’s a hidden cost shift. And one that families shouldn’t have to absorb.”

In addition to economic strain, AI data centers are some of the nation’s most resource-intensive facilities, often requiring several million gallons of water daily for cooling and operating at energy levels comparable to small cities. Many of the proposed DOE sites are located near Tribal nations, vital waterways, or ecologically sensitive habitats—yet the current federal process does not mandate public transparency, formal consultation, or environmental review at this stage.

A Call for Responsible Development.

The Next 100 Coalition outlines five guiding principles for any federal AI infrastructure buildout:

Transparent assessments of environmental, health, and economic impacts.
Equitable utility rates that don’t offload corporate costs onto residents.
Strong protection for water resources, particularly in drought-prone areas.
Pollution controls to prevent placing burdens on vulnerable communities.
Mandatory consultation with Tribal governments and local residents.

Garcia Irlando stressed the long-term implications of unchecked development: “If AI is going to shape the future, then the public must have a say in how, where, and why it’s built. Because once these facilities are up, their impacts will last for decades.”

With the public comment period for the DOE initiative closing May 7 (Federal Register link), communities and water advocates are urging policymakers to slow the pace, ensure environmental compliance, and incorporate sustainability into every stage of the AI buildout. As AI continues to redefine infrastructure needs, stakeholders across the country are demanding that water, equity, and transparency not be left behind.