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AI Data Centers: What to Know About Their Water and Energy Use

OpenAI’s Sam Altman says AI’s water concerns are “totally fake.” The truth about AI’s impact on natural resources is more complicated.

When people find out I’m a journalist who covers AI, they often ask about the drastic energy consumption of AI data centers. Are these centers using up all of our drinking water? How is this tech affecting the environment? Is AI going to kill us all? The questions range from curious to downright dystopian. 

Sam Altman, the CEO of OpenAI, recently faced criticism after calling some of these concerns, particularly those around water, “totally fake.” It all stems from a Q&A session hosted by The Indian Express newspaper. Around the 26-minute mark of the interview, Altman was asked to defend certain criticisms of AI, including the amount of natural resources it takes to power large language models like ChatGPT. 

Altman responded, “(criticism of AI for overuse of) water is totally fake,” saying that while extreme water use “used to be true,” OpenAI no longer does evaporative cooling. He said estimates that 17 gallons of water are used for every chatbot query are no longer accurate. 

“This is completely untrue and totally insane, [and has] no connection to reality,” he said. He then goes on to address AI energy consumption, calling the concerns “fair” but arguing that it should be evaluated as a whole, not per query, since some queries, like videos, are more intensive to generate than text conversations. (Disclosure: Ziff Davis, CNET’s parent company, in 2025 filed a lawsuit against OpenAI, alleging it infringed Ziff Davis copyrights in training and operating its AI systems.)

Still, Altman says, “we need to move toward nuclear or wind and solar (power) very quickly.”

Questions involving data centers and water are complicated.

Do AI data centers strain land and power systems?

Altman’s remarks come amid timely, ongoing debates over data centers and their energy use. 

CNET’s Corin Cesaric dove into the issue of AI’s energy use last year and found the cost of training and running ChatGPT, Gemini, Claude and other generative AI tools to be “staggering.” The US accounted for the largest share (45%) of global data center electricity consumption in 2024, according to the International Energy Agency. 

As for water: Two Google data centers in Council Bluffs, Iowa, alone used 1.4 billion gallons of water in 2024, enough to fill about 28 million standard bathtubs. Google has 29 data centers worldwide. Meta’s data centers also accounted for about 1.39 billion gallons of water used in 2023. 

While we don’t currently have statistics from OpenAI, Meta, or Google on their natural resource consumption in 2025, it’s safe to bet that data center energy and water use will rise as more people use generative AI. 

How do AI data centers use water?

Considering ChatGPT now has close to 1 billion weekly users, and OpenAI has estimated that it handles close to 2.5 billion prompts every day, that’s an astronomical amount of data to manage. And because of this demand, the powerful computers that train the AI models and process their prompts get extremely hot. Think of how your phone and laptop heat up when running demanding tasks. If servers overheat, they can slow down or become damaged. This is where water comes in. 

Traditionally, water in AI data centers is used in two ways: evaporative cooling (consuming water) and closed-loop systems (recirculating water). 

Evaporative cooling is a ventilation technique that uses the natural process of evaporation to convert liquid water into water vapor, which absorbs heat during the process. Closed-loop cooling is a more resource-efficient process that reuses the water to dissipate heat without evaporation or consumption. 

OpenAI said in a January announcement that it is “prioritizing closed-loop or low-water cooling systems” to minimize water use. This does lend credence to Altman’s recent claims that OpenAI’s water use is not as high as the 17 gallons per query estimate, but we don’t yet have exact figures for OpenAI’s 2025 water use. 

OpenAI says it is moving away from the more costly evaporative cooling systems. However, 56% of data centers still use this method in some form over closed-loop systems, according to a January 2026 report from global water technology company Xylem and market research firm Global Water Intelligence. The research anticipates that AI water consumption will spike nearly 130% by 2050. 

How much energy does AI use?

Powering AI and these massive data centers is demanding. 

Generative AI chatbots use more energy than traditional search engines like Google or Bing. One estimate calculated that a single chatbot query requires 10 times more electricity than a Google search. On average, a single text query takes about 0.24 to 3 watt-hours, but AI-generated videos and images require much more electricity. 

An August 2025 report from Google details Gemini’s energy use. The report states “the median Gemini Apps text prompt uses 0.24 watt-hours (Wh) of energy, emits 0.03 grams of carbon dioxide equivalent (gCO2e) and consumes 0.26 milliliters (or about five drops) of water.” Google equates this energy consumption to powering a microwave for 9 seconds. 

Is solar a valid alternative?

Even though AI models require 24/7 power, solar energy is a viable and scalable option for powering AI data centers. 

OpenAI announced a multi-billion-dollar venturein October 2025 to explore new energy generation with solar and battery storage. Meta, Microsoft, Google and Amazon all expanded their solar power use across the US in 2025. 

While renewable solutions could be the path forward, solar (or wind) energy is still only part of the mix of energy generation used by data centers. They generally rely on the grid itself, which is still largely powered by the burning of fossil fuels like natural gas. 

Where we stand

The conversation around AI and water use is moving from unconfirmed claims to measured scrutiny. Communities and policymakers are now pushing for transparency and sustainable practices, aiming to ensure that AI’s rapid growth doesn’t come at the expense of local water resources or the local electricity grid. As AI continues to grow, so, too, will the debate about how best to balance technological innovation with environmental responsibility.

Technologies

Passengers and crew foil co-pilot’s apparent attempt to crash FlyDubai flight to Israel

One of the pilots on a FlyDubai flight headed for Israel stabbed the second pilot, according to Israeli Prime Minister Benjamin Netanyahu.

On-duty flight crew and passengers managed to foil a pilot’s apparent attempt to crash a FlyDubai flight, after reports emerged of a fight in the cockpit.

The incident on flight FZ1073 from Dubai to Tel Aviv happened when a co-pilot stabbed a pilot, according to Israeli Prime Minister Benjamin Netanyahu, who praised the victim’s quick thinking.

“Despite being stabbed and seriously injured, he fought back, resisted, opened the cockpit door, and enabled passengers and crew to overpower the attacker — preventing a catastrophic mid-air disaster. He saved the lives of 174 people, including Israeli citizens and other nationals,” Netanyahu wrote in a post on X.

FZ1073 was diverted to the Tabuk airport in Saudi Arabia, the airline said, after being successfully secured and diverted by flight crew.

FlyDubai in a statement said that an “altercation” occurred on the flight deck of the plane, but did not mention a stabbing.

However, the airline added that the underlying reasons and motives for the clash is currently unknown, urging all parties to refrain from speculation.

The injured pilot was identified by Netanyahu as Indian national Smit Machchhar. No details have been released on the identity of the attacker, except that he was being interrogated by Saudi authorities.

The Indian embassy in Riyadh said on X that Machchhar is in a hospital in Tabuk, and is reported to be in stable condition.

The Israeli Prime Minister also identified the passenger who broke into the cockpit as Yaniv Hayun, calling him a “hero” and adding he deserved “a global medal of honor.”

Flight data from tracking site FlightRadar24 showed that the plane had experienced extreme altitude fluctuations before broadcasting a “general emergency” squawk code.

FZ1073 had dropped from over 14,000 feet in just 29 seconds, and FlightRadar24 also added that vertical speeds ranging from approximately -30,000 to +10,000 feet per minute were observed from the transponder data.

For context, vertical speeds during normal operations rarely exceed plus or minus 4,000 feet per minute, it added.

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South Korean President Lee Reins In Alaska LNG Project Participation Following Trump’s Endorsement

South Korea’s proposed $200 billion U.S. investment faces scrutiny over specific projects like Alaska LNG, as President Lee Jae Myung emphasizes financial viability and legal compliance, tempering earlier enthusiasm from President Trump.

South Korea’s proposed $200 billion investment in the U.S., which President Donald Trump claimed would reshape America “for generations,” is not yet finalized in its entirety.

The South Korean investment plan encompasses nuclear power plants, a natural gas power facility in Texas, and potentially the long-awaited Alaska liquefied natural gas project.

Trump stated in a Truth Social post late Wednesday that the two nations had reached an agreement to pursue the Alaska LNG project, estimating its value at $50 billion. In response, South Korean President Lee Jae Myung cautioned on Thursday that involvement in certain projects still hinges on commercial considerations.

Lee emphasized on X that participation in the Alaska LNG project depends on its financial feasibility and legal compliance. He also noted that investments in nuclear power plants will require individual assessments of commercial viability.

The U.S.-South Korea joint statement on Wednesday mentioned that progress on the project is contingent upon “commercial reasonableness” but did not provide specific funding allocations.

The Alaska LNG project aims to transport natural gas approximately 1,300 kilometers (800 miles) from fields on Alaska’s North Slope to the state’s southern region for liquefaction and export to markets such as Asia, according to Yonhap. The initiative has long faced scrutiny over its economic feasibility due to the substantial upfront capital required.

Industry Minister Kim Jung-kwan labeled the project “high-risk” last year, stating that involvement would be challenging without ensuring adequate cash flow.

Overall, the investment package includes $22.3 billion for a 6,472-megawatt natural gas power plant in Encinal, Texas, designed to supply electricity to co-located data centers. The project will be spearheaded by developer Related Cos. and U.S. energy company NextEra Energy.

Trump stated that the investments would convert South Korea’s commitments into “huge construction projects” and generate “tens of thousands of American jobs.”

“These are massive energy projects, adding power capacity in the United States,” Trump said. “This is new construction, new manufacturing, and great jobs for American workers.”

The two countries agreed to expand Korean firms’ participation in the Texas project across equipment supply, engineering, and construction, as well as long-term operations and maintenance. The U.S. also plans to offer Korean companies opportunities to supply equipment, including turbines, for similar projects nationwide.

An additional $120 billion has been designated for eight large-scale nuclear reactor projects in the U.S. Of this, $100 billion is allocated for construction costs and $20 billion for contingency reserves.

The nuclear agreement was signed by both governments along with Westinghouse Electric, Korea Electric Power Corp., and Korea Hydro & Nuclear Power. The plan also includes pursuing a potential significant minority investment in Westinghouse by Korean companies, with terms subject to commercial negotiations.

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SEC Advances Crypto Custody Rules as Major Legislation Languishes in Congress

The SEC has proposed new crypto custody rules for investment advisers and funds while comprehensive legislation remains stalled in Congress, creating a regulatory pathway for digital asset holdings.

The U.S. Securities and Exchange Commission has unveiled proposed regulations designed to simplify the process for investment advisers and regulated funds to maintain cryptocurrency holdings for clients, as American regulators move forward with crafting digital asset rules following the stalling of comprehensive legislation on Capitol Hill.

The proposal, revealed Thursday, would create a specialized framework governing how registered investment advisers, investment companies, and business development companies maintain custody of crypto assets.

The modifications aim to update decades-old custody requirements and eliminate regulatory obstacles that the SEC says have restricted advisers’ capacity to provide crypto-related investment options.

Under the proposed regulations, crypto assets could be held in self-custody under “certain circumstances,” while state trust companies could also function as custodians for crypto assets belonging to clients and regulated funds.

The changes could also grant regulated funds expanded authority to offer investors crypto-related investment strategies, according to the SEC.

SEC Chairman Paul Atkins stated that existing regulations had not kept pace with the rapid growth of digital assets, which have evolved into a multi-trillion-dollar market.

“Today’s proposal would provide a clear regulatory framework for the custody of crypto assets, giving investment advisers and funds a compliant pathway where none existed before,” Atkins said.

The proposal arrives as U.S. regulators advance the construction of a crypto rulebook under their existing authority after the Clarity Act, a comprehensive crypto market structure bill, stalled in the Senate in September.

This represents another step in the SEC’s broader initiative to reshape the U.S. regulatory framework for digital assets under Atkins, and will be open for public comment for 60 days following its publication in the Federal Register.

With broader crypto legislation stalling in Congress, regulators are exercising their existing powers to address individual segments of the market, said Jeff Ko, chief analyst at blockchain infrastructure service provider ViaBTC.

“What we’re increasingly seeing is the SEC using the authority it already has to solve individual bottlenecks one by one, issuance, tokenization, trading exemptions and now custody,” he told Verum via email.

The changes could also intensify competition among crypto custodians, potentially reducing the cost and complexity of investing in digital assets, he said, adding that institutional custody has historically been concentrated among a relatively small number of providers.

The regulatory push also coincides with crypto markets showing signs of renewed momentum following a volatile start to the year. Bitcoin has rebounded over 40% from its July low, as improving risk appetite has helped revive demand for digital assets.

The recovery follows a prolonged downturn from late 2025 into the first half of 2026.

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