Jakarta. The thirst for water across the artificial intelligence (AI) value chain is expected to grow by triple digits in the coming years, a UN envoy has warned, as adoption of this technology is happening at lightning speed.

"AI's rapid global expansion is set to drive a 129% increase in water demand across the value chain. As many as 40% of the data centers in the world are in high-water stress areas," Retno Marsudi, the UN secretary-general’s special envoy on water, told the 2026 Indonesia Net-Zero Summit in Jakarta over the weekend.

Retno, who was Indonesia’s foreign minister for a decade, cautioned that AI data centers would have to make sure their operations are efficient in water use. 

Aside from the AI threats to water, the world is also facing a major investment gap. UN estimates showed that the world would require $6.7 trillion in financing for universal clean water access by 2030, and the need would rise to $22.6 trillion by 2050.

“About 86% of the funding for water and sanitation is coming from public money. The private sector’s [contribution] is only at 2%; it’s just a drop in the bucket,” Retno said, while calling for the government to work with all stakeholders to narrow the gap.

At home, Indonesia is pursuing a regional data center partnership with close neighbor Singapore. The government has also signaled plans for a “so-called water farming policy”, which will require restoration of extracted groundwater. Indonesia intends to roll out a government regulation by the end of this year, although the rules remain subject to public assessments. 

Environment Minister Mohammad Jumhur Hidayat confirmed that the rule would cover businesses involved in the water-hungry data centers.

“Basically the rule will apply to everyone,” Jumhur told reporters on the margins of the same conference.

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