Elon Musk has endorsed NVIDIA's environmental manifesto: a new perspective on water consumption in AI infrastructure.
Recently, major technology corporations have increasingly come under fire for their massive consumption of natural resources. Particular concern is raised by the electricity and freshwater consumption of data centers serving the growing needs of AI. However, NVIDIA's leadership firmly rejects these accusations, and unexpectedly strong support for their position has come from Elon Musk.
Musk Joins NVIDIA's Arguments
The entrepreneur, whose company xAI actively uses clusters based on NVIDIA solutions, publicly agreed with the chip manufacturer's arguments. The debate over the environmental footprint of advanced technologies is reaching a new level. Musk has repeatedly called NVIDIA's latest chips a key element of his artificial intelligence projects, and his public endorsement significantly strengthens the partner's position.
In its blog, NVIDIA cites data from the Manhattan Institute for March 2026: data centers consume approximately 0.2% of freshwater in the U.S., with most of this volume indirectly going toward electricity generation. Modern liquid cooling operates at a stable temperature of 45 degrees, allowing AI complexes in northern latitudes to fully switch to economical dry radiators, abandoning bulky evaporative towers.
In 2025, NVIDIA already stated that Blackwell systems are 300 times more water-efficient than air cooling. Since maintaining optimal temperature consumes up to 40% of a data center's total energy, the innovative approach significantly reduces monetary costs. This factor is now fundamentally changing the rules of global competition in the artificial intelligence market.
Reality Behind Loud Claims: Hidden Risks
However, nationwide optimistic reports often mask real regional problems. Loud claims about zero water consumption only address the direct cooling loop. Indirect costs are rapidly increasing amid the large-scale deployment of neural networks. Analysts at the Berkeley Lab predict that net direct consumption will surge to 38–73 billion gallons by 2028.
The efficiency of dry radiators is directly tied to the surrounding climate. The equipment performs excellently in cool states, but its productivity drops in arid desert zones. The startup xAI also feels environmental pressure: the giant computing complex Memphis Colossus daily extracted up to 1.3 million gallons of clean drinking water from underground sources. Additionally, the company launched dozens of gas turbines before obtaining official permits, sparking outrage among local residents and leading to high-profile lawsuits.
Expert Opinion: Musk's support is a powerful PR move, but it does not eliminate the fundamental problem. The further development of the industry will entirely depend on the strictness of environmental oversight by authorities. Investors should closely monitor regulatory risks, especially in regions with water scarcity.