California and EU Regulate AI Energy and Water Consumption

Key Facts

1California and the EU announced new policies to track and limit resource consumption by hyperscalers.

2AI is projected to consume as much water as 1.3 billion people by the end of the decade.

California and the European Union announced new policies to track and limit resource consumption by hyperscalers. OilPrice.com reported that these regulatory frameworks are designed to monitor and curb the significant energy and water usage within the AI sector. The move follows projections indicating that AI could consume as much water as 1.3 billion people by the end of the decade.

The new regulations require data centers to disclose their energy and water usage to address the environmental strain caused by rapid infrastructure growth. This increased oversight is expected to raise operational costs for AI infrastructure and data center operators. In related economic context, the EU Manufacturing PMI was recorded at 52.7 on September 23, 2026, while the Services PMI reached 53 on the same date.