Europe’s bold drive to become a global hub for artificial intelligence may be running headfirst into a hidden environmental threat: water scarcity. The European Union announced in April plans to at least triple its data center capacity over the next five to seven years, a move aimed at cementing the continent’s role in the AI economy.

Data centers, which power everything from social media and online banking to AI tools like ChatGPT, require vast amounts of water for cooling. This demand raises alarms in southern Europe, where around 30% of the population lives in areas experiencing chronic water shortages.

Tech Giants Meet Local Resistance

Major corporations, including Amazon, Microsoft, and Meta, have invested billions in European data centers, with projects in Spain and plans for three Google hubs in Greece’s Attica region. Local communities are questioning who will have priority for water when shortages strike.

Kevin Grecksch, deputy professor of water science and policy at Oxford University, criticized policymakers for not fully considering sustainability. “Politicians see AI as a future investment creating jobs, but they aren’t factoring in long-term environmental impacts,” he said.

Innovations and Challenges

The EU points to projects like the JUPITER supercomputer in Germany as models for energy-efficient, environmentally responsible data centers powered entirely by renewable energy. However, such examples contrast sharply with regions like Aragon in northeastern Spain, where planned Amazon facilities could strain already limited water resources.

Some companies are experimenting with alternative solutions, such as non-potable water cooling systems or recycling seawater, as seen in Microsoft’s pilot projects and Portugal’s Start Campus in Sines. Yet critics argue that the economic gains—high-paying tech jobs and GDP growth—come at an environmental cost, noting that a 20-megawatt data center can consume as much water as a golf course.

Europe at a Crossroads

Lawmakers warn that Europe faces mounting pressures from water scarcity, food security, and pollution, all while being the fastest-warming continent. A recent S&P Global analysis highlighted Spain and Greece as key targets for tech investments, raising concerns that short-term economic incentives could drain critical water resources.

Europe’s AI future is being built on data—but without careful planning, it may risk running dry.