July 12, 2026, 1:55 pm | Read time: 3 minutes
The success of ChatGPT, Gemini, and other AI services is driving a significant increase in demand for computing power. This is leading to the creation of new data centers worldwide, which require large amounts of electricity and water. The consequences affect not only the operators of these facilities but increasingly also energy providers. At the same time, there is growing concern that rising infrastructure costs could have long-term effects on the prices of AI offerings.
AI Data Centers Use More Water Than Reported
With the rapid growth of AI applications, the demand for data centers is also increasing. According to industry analyses cited by the financial portal “Morningstar,” the water consumption of these facilities is higher than the official figures provided by the companies suggest.
A key reason for this is the energy demand of the data centers. Power plants that supply electricity to these facilities also require water. This indirect consumption has not yet been fully accounted for in the companies’ sustainability reports.
The issue is gaining additional urgency as the demand for AI services continues to rise. This necessitates more and more data centers. At the same time, ongoing droughts in parts of the U.S. are exacerbating the situation.
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Growing Strain on the Power Grid
Not only is water consumption rising, but the power supply is also increasingly under pressure. By the summer of 2026, the growing number of new AI data centers will significantly burden the U.S. power grid. High temperatures and ongoing drought further exacerbate the situation.
In response to this development, the energy provider National Grid is investing $1.75 billion in the company Joulent, securing a 35 percent stake. Joulent develops infrastructure for large customers with particularly high electricity needs, including data center operators.
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The investment highlights the sums now necessary to support the expansion of infrastructure for AI applications. At the same time, it underscores the growing pressure on the energy sector.
Potential Consequences of the Expansion
The expansion of AI services is increasingly caught between climate goals, energy supply, and grid stability. According to Morningstar, solutions for off-grid power supply for data centers are therefore gaining importance. These include small generators that are relatively inexpensive and quickly available.
How this development will affect the market in the long term is currently uncertain. It remains unclear whether rising expenses for energy and infrastructure will lead to higher prices for AI services in the future or could slow further expansion.
What is certain, however, is that the industry faces the challenge of finding solutions for the growing demand for energy and resources. The ongoing AI boom increases the pressure to develop new ways without further burdening the climate and supply security.
With material from dpa