Pakistan’s move to allocate 2,000 MW for AI data centers represents a major step forward to drive digital growth and foreign investment. However, this expansion may significantly strain the already stressed water resources. The issue persists due to over-dependence on groundwater, climate change and inefficient infrastructure. Under a moderate AI adoption scenario, water withdrawal from cooling systems may rise by 6.3 million m³/year by 2030. Strategic policy measures such as Water Use Efficiency (WUE)-based fiscal incentives, mandatory environmental audits and assessments and adoption of advanced cooling technologies are essential to reduce water footprint of AI data centers.
