Discussions, negotiations and agreements are in full swing at COP 28. The current iteration of the COP, short of “Conference of the Parties”, which is held in Dubai, UAE explores a myriad of issues that affect global temperature rise and other ill effects of climate change. And one aspect of the global climate crisis is water crisis.
🪣 Why are Big Tech companies guzzling water?
Tech giants are witnessing a surge in water consumption. Unexpectedly, the race to advance artificial intelligence (AI) is a major contributor to this sharp increase. Shaolei Ren, who is Associate Professor of Electrical and Computer Engineering at the University of California, notes that AI models, like OpenAI’s ChatGPT, can gulp down 500 ml of water for every 10 to 50 prompts. The study raises alarm bells, emphasising that the growing water footprint of AI models could pose a significant obstacle, if it is left unaddressed.
🚨 Is Big Tech putting more than just water resources at risk?
The environmental impact of sustaining power-hungry servers and AI models extends far beyond water consumption. Meta, for instance, relies on warehouse-scale data centres that not only drive its water consumption but also contribute to energy use and greenhouse gas emissions. Similarly, Microsoft and Google have also disclosed substantial increases in their global water consumption.
🎙️ How Are Big Tech Companies Responding to Water Concerns?
Both Microsoft and Google have pledged to reduce their water footprint and become “water positive” by the end of the decade. Microsoft reports a 36% rise in water consumption from 2021 to 2022, amounting to nearly 1.7 billion gallons, while Google’s water usage at its data centres and offices increased by 21% to 5.6 billion gallons in 2022. However, these figures precede the launch of their AI competitors, Bing Chat and Google Bard, which could lead to even higher water consumption in the coming months.
Microsoft and Google respond to concerns by emphasising their commitment to sustainability. Microsoft is investing in research to measure the impact of AI on energy, water, and carbon, with a focus on making large systems more efficient. Google, on the other hand, claims that the energy needed to power AI technology is rising at a slower rate than predicted. Both companies assert their efforts to reduce emissions and increase the use of clean energy, aiming to be carbon negative, water positive, and zero waste by 2030.
🖼️ Looking at the broader picture
As companies like Microsoft and Google grapple with the environmental repercussions of sustaining power-hungry servers and AI models, investors and stakeholders face heightened scrutiny. The potential clash over water resources, coupled with the hidden costs of increased energy and resource usage, introduces a new dimension to risk assessment. Balancing technological innovation with sustainable practices becomes imperative, impacting both the valuation and reputation of tech giants as they navigate the delicate intersection of business, finance, and environmental responsibility.