From lithium mining to AI data centers, a lack of fresh water is reshaping key industries, so securing a supply is now a business imperative

Water scarcity, amplified by climate change and population growth, is already reshaping how industries operate and grow. In many regions, rainfall is becoming less predictable, and droughts are more intense and widespread, while water demand continues to rise. A reliable water supply underpins industrial growth, and when availability becomes uncertain, operations, expansion plans, and long-term investment decisions are directly affected. Five industries that depend heavily on water are emerging as the most vulnerable. These industries share two critical challenges: high water demand and dependence on reliable, high-quality supply in regions where availability is becoming increasingly uncertain.

1. Lithium Mining: The Hidden Cost of the Energy Transition

The growing demand for lithium-ion batteries, which power everything from smartphones to laptops to electric vehicles, has produced a surge in lithium mining. Extracting lithium, especially from brine, requires significant volumes of water, often in regions already under severe water stress.

For each metric ton of lithium recovered, about 2 million liters (528,344 gallons) of water must be evaporated. This not only results in the loss of water to the atmosphere but also leaves brine behind, putting underground freshwater supplies at risk of contamination.

In places like the Western United States and the Lithium Triangle in South America, lithium operations compete directly with local communities and ecosystems for scarce groundwater. This creates both environmental pressure and operational risk. If water availability tightens, production can slow, and mining operators may face water restrictions.

To manage these risks, lithium mining companies are turning to advanced treatment and reuse systems. Solutions such as Fluence’s high-recovery desalination and brine concentration technologies help reduce freshwater loss while enabling reuse within the mining process, supporting more circular water-management strategies that reduce overall freshwater demand.

2. Data Centers & AI: The Water Requirements of Rapid Digital Growth

Artificial intelligence (AI) is driving rapid growth across industries, from cloud computing to advanced analytics. While AI often feels intangible to end users, the infrastructure that supports it is resource-intensive. AI relies on large data centers that generate vast amounts of heat and require huge volumes of water to keep high-performance computing systems cool and operating efficiently.

To cool its computer servers, a medium-sized data center typically consumes up to 110 million gallons of water a year, which is equivalent to the annual water use of about 1,000 households. Larger data centers can each consume up to 5 million gallons per day, or about 1.8 billion gallons a year – equivalent to the water usage of a town of 10,000 to 50,000 people. Globally, the sector consumes hundreds of billions of gallons annually, with demand rising sharply as AI expands.

Many of these facilities are being built in water-stressed regions, sparking local concerns. As a result, water availability has become a limiting factor for digital expansion. Communities are beginning to scrutinize projects not just on energy use but also on water consumption and water availability.

Fluence addresses this challenge through decentralized water reuse and advanced membrane aerated biofilm reactor (MABR) systems, enabling data centers to shift away from potable water sources. By enabling the use of recycled or nonpotable water for cooling, these solutions help reduce strain on municipal supplies while supporting continued expansion.

3. Food & Beverage: Water as Both Ingredient and Risk

For food and beverage producers, a reliable supply of high-quality water is essential. Water is used in nearly every stage of the food production process, from brewing and bottling to cleaning and processing, and often as a key ingredient in the product itself. When water becomes scarce or when water supply or quality becomes inconsistent, it can disrupt production, raise costs, and negatively impact product quality.

To mitigate these risks, many forward-thinking companies are investing in water recycling and zero-liquid discharge (ZLD) systems. Fluence’s decentralized treatment and reuse systems allow facilities to treat and reuse process water on-site, reducing discharge volumes while improving water security.

4. Power Generation: The Water-Energy Nexus

Water and energy are tightly interconnected across every stage of production and delivery. Pumping, treating, and supplying water — and then returning wastewater for treatment — consumes energy at every step. At the same time, producing this energy is water-intensive.

Thermal power plants, whether powered by coal, gas, or nuclear energy, require large volumes of water for cooling. Even renewable energy systems can have indirect water footprints due to their manufacturing processes, including the production of lithium-ion batteries used in electric vehicles.

As water scarcity intensifies, power producers face a dual challenge: maintaining energy production while reducing water consumption. In drought-prone regions, limited water availability can force plants to reduce their output or shut down temporarily.

This dynamic highlights the growing importance of water-efficient cooling and reuse strategies. Fluence supports the energy sector with treatment systems that enable the use of alternative water sources — including brackish or recycled water — for cooling and other processes. This reduces reliance on freshwater supplies while ensuring that operations and energy output remain stable.

Fluence also offers waste-to-energy solutions that incorporate anaerobic digestion of animal waste and organic matter to produce renewable energy in the form of a methane-rich biogas, turning a waste product into a valuable alternative energy source.

5. Agricultural Processing: Bridging Farm and Factory

The agricultural sector is the largest water user globally, accounting for about 70% of freshwater withdrawals, followed by the industrial sector at 20%. But while crop irrigation accounts for the highest percentage of water consumption in this sector, agricultural processing — the step that bridges the gap between the farms and the consumer’s table — relies heavily on water and is equally vulnerable to water constraints.

Facilities that process crops, meat, and dairy products require large volumes of water for washing and processing products, as well as cleaning preparation surfaces and equipment. When water availability is unreliable, it can have ripple effects throughout the entire supply chain, leading to supply chain disruptions and product shortages.

Because many agricultural processing plants are located in the agricultural regions where their products are sourced, they compete with farmers for an overstressed resource.

Fluence’s modular and decentralized water and wastewater treatment systems are particularly well-suited to this sector. By enabling on-site treatment and reuse, these systems allow processing facilities to operate more independently of local water supplies while maintaining compliance with stringent discharge regulations.

From Scarcity to Sustainability: Rethinking Water Use

The five industries above operate across very different sectors, but they all face the common strategic constraint of water availability. The industries most vulnerable to water uncertainty are the ones that play an important role in today’s economy, from raw materials and technology to energy and food. To ensure the long-term sustainability of their operations and that of the surrounding communities, they need to secure a reliable water supply.

As electrification, AI expansion, and industrial growth accelerate simultaneously, water is emerging as the shared constraint across these interconnected sectors. Securing a reliable supply is no longer just an operational concern but rather a prerequisite for growth.

At the same time, solutions are evolving to address these challenges. Advanced treatment technologies, reuse, and decentralized infrastructure are helping industries reduce their dependence on natural sources of fresh water, improve efficiency, and build resilience in the face of uncertainty.

Contact Fluence for help securing a reliable water supply through decentralized treatment, reuse, and high-efficiency systems tailored to specific operational demands.