Sam Altman says fears that AI data centers guzzle water are overblown — but hard to dispel

Billy Odell Tucker-Robinson Founder & Host — Banking With Billy Network • Financial Intelligence • Markets • World News • Independent Analysis
Published: 2026-09-02 • Permanent link

Concerns over the water usage of AI data centers have been reignited after Sam Altman, the CEO of OpenAI, downplayed the issue, stating that fears of excessive water consumption are overblown. In a recent interview, Altman compared the water usage of ChatGPT's servers to that of growing almonds in California, arguing that the two are comparable in terms of water requirements. This statement has sparked a mixed reaction from investors and analysts, with some expressing skepticism about the accuracy of the comparison.

The water usage of AI data centers is a pressing concern, particularly in regions where water is scarce. As the demand for AI-powered services continues to grow, so too does the need for reliable and efficient data centers. The implications of Altman's statement are far-reaching, with investors and consumers alike weighing the potential risks and benefits of the rapidly evolving AI landscape. With the global AI market projected to reach $190 billion by 2025, the water usage of AI data centers could have a significant impact on the bottom line of companies operating in this space.

The issue of water usage in AI data centers is not a new one, but rather a growing concern that has been exacerbated by the increasing demand for AI-powered services. Since the launch of ChatGPT in 2022, there has been a significant increase in the number of companies investing in AI infrastructure, leading to concerns about the environmental impact of these operations. According to a recent report, the global data center market is expected to consume over 1.4 trillion liters of water per year by 2025, highlighting the need for more sustainable solutions.

As the debate over the water usage of AI data centers continues, investors and analysts will be watching closely for any developments that could impact the market. In the coming months, several major companies are expected to release updates on their water usage practices, providing valuable insights into the sustainability of their operations. With the stakes high, it remains to be seen whether Altman's statement will be vindicated or if concerns about the water usage of AI data centers will continue to grow.