Microsoft Criticized Over Rising Water Consumption From AI Data Centers

As artificial intelligence continues to scale, demand for energy and natural resources keeps rising. While OpenAI has said its data centers will not significantly affect consumer power bills, and Microsoft has made similar claims, attention has shifted toward water consumption, where Microsoft is now facing growing criticism.

According to Windows Central, Microsoft is under pressure as data center water use increases sharply alongside its AI expansion. The company pledged in a 2020 sustainability blog post to replenish more water than it consumes by 2030, but experts questioned the feasibility of that goal even when it was announced.

Rising water demand raises sustainability concerns

Internal projections reportedly suggest Microsoft’s water requirements could more than double by 2030, largely driven by AI-focused data centers. A report from The New York Times says it reviewed internal documents indicating Microsoft’s annual water use could more than triple this decade, reaching around 28 billion liters by 2030. By comparison, Microsoft used about 7.9 billion liters of water in 2020 and roughly 10.4 billion liters in 2024.

The broader industry trend adds to these worries. Analysts expect global data center water consumption to double by 2030, increasing pressure on water supplies, particularly in regions already facing shortages.

Microsoft responds with efficiency claims

Microsoft has pushed back against the most severe projections, saying efficiency improvements have changed its outlook since those internal estimates. The company now says it expects water use to increase by about 150% by 2030 rather than triple. It has also highlighted recent efficiency-focused efforts, including the introduction of its Maia server chip, which it says was designed with resource efficiency in mind.

Despite these assurances, environmental advocates argue that the rapid expansion of AI data centers could still disproportionately affect drought-prone areas, where water resources remain under significant strain.

The controversy has also reached financial markets. Microsoft’s stock reportedly dropped by around 10% following intensified criticism of its data center strategy and AI push, showing that environmental concerns can translate into real market consequences.

As AI infrastructure continues to expand, Microsoft’s approach to balancing growth with sustainability will likely remain under close scrutiny from investors, regulators, and communities impacted by large-scale data center projects.