New Delhi, Sept. 8 -- Artificial Intelligence (AI) data centers are expected to significantly increase global water consumption in the coming years, according to a report by Morgan Stanley.

The report said annual water use for cooling and electricity generation by AI data centres could reach around 1,068 billion litres by 2028.

"AI data centers to drive annual water consumption for cooling and electricity generation to approximately 1,068 billion liters by 2028 (our base case) - an 11x increase from 2024 estimates," it stated.

The report noted that while water use for cooling data centres is widely acknowledged, the indirect water use through electricity generation remains underappreciated. AI's broader water footprint also includes se...