The strain from AI-driven demand is part of a wider set of water-related risks, including the potential to strand business assets as production facilities become unusable or unprofitable due to insufficient supply or tighter regulations, such as wastewater discharge requirements.
JPMorgan and ERM’s report calls for increased investment in water infrastructure, which currently faces an annual funding gap of $91 billion.
The report suggests that innovative technologies, such as waterless cooling systems for data centers and advanced wastewater recycling solutions for semiconductor manufacturing, could play a key role in addressing water scarcity and stress.