Water Law Expert Warns AI Boom Will Force Hard Choices
Quick summary: Arizona State University water law expert Rhett Larson, the second Distinguished Scholar of UHLC’s Environment, Energy and Natural Resources Center, discussed how artificial intelligence is increasing demand for water and energy. His lecture explored how data centers, semiconductor manufacturing and emerging technologies are forcing communities to confront difficult resource tradeoffs.
May 1, 2026 — Artificial intelligence is reshaping the economy at the speed of a bullet train. But the infrastructure needed to power the technology, from energy-hungry data centers to water-intensive semiconductor plants, is placing increased strain on already limited natural resources, shared Arizona State University professor Rhett Larson at a recent University of Houston Law Center event.
Larson, named UHLC’s Environment, Energy & Natural Resources Center (EENR)’s second EENR Distinguished Scholar, presented a lecture titled, “Water, AI and the Future of Energy,” as part of EENR’s Distinguished Scholar series, which brings leading voices in energy and natural resources to campus. Drawing on decades of experience in Western water law, Larson, described how technologies such as data centers, semiconductor manufacturing, and quantum computing, are accelerating demand for both water and energy—forcing communities to make difficult decisions.
“It is impossible to talk about one without talking about the other,” said Larson. “If you talk about food, you have to talk about water and energy. If you’re going to talk about water, you have to talk about food and energy.”
As an Arizona native he explained how growing up in a farming community along the Colorado River shaped his understanding of power, politics, and water management.
“I grew up in a town where, to me, real power was control of your irrigation district. Those people had real power because they could open and close gates that gave you your water” he said.
Today Larson is the Richard Morrison Professor of Water Law at ASU’s Sandra Day O'Connor College of Law and a senior research fellow with the Kyl Center for Water Policy. His work focuses on how technological innovation, climate stress and population growth are impacting water rights systems in the U.S. and abroad.
Water law is drawing broad public attention as drought and development intensity competition for limited supplies, he said adding that the tension is especially visible in communities vying to attract data center and high-tech manufacturing facilities. Such projects often present a tough choice: conserve energy or conserve water.
“For most data centers, there's a balance, you are either going to consume an enormous amount of water to cool your data center, and you're going to save a lot of energy,” he said. “Or you're going to consume an enormous amount of energy and you're going to save a lot of water. And you're going to usually have to make those choices.
Looking ahead, Larson warned that future integration of AI with quantum computing could dramatically increase water and energy consumption. He outlined emerging policy responses, including zoning restrictions, net-zero water requirements and investment in recycling and energy infrastructure, while noting that even lower-carbon options like small modular nuclear reactors consume vast amounts of water.
At the same time, Larson said AI could help reduce water waste through improved monitoring, leak detection and efficiencies across agriculture and industry.
Ultimately, he said, decisions about using limited resources, such as water and energy use, frame a broader lesson: meaningful decisions require prioritization and acceptance of tradeoffs.
“The price may be taking water away from farmers, which is going to increase your grocery prices. It may be increasing energy capacity, which is going to be more water consumption. And it's going to raise security issues,” he said. “No matter what choice we make here, there's going to be a trade-off and a cost.”
Larson concluded with a call for broader public engagement.
“But the most important water and energy decisions are not decisions that experts can make,” he said. “The whole communities have a voice to tell us, what do we want to be when we grow up? And once we know that answer, the water and energy experts can get us there.”
He also serves on the board of directors of the Arizona Mexico Commission, on the Water Conservation Grant Committee of Arizona's Water Infrastructure Finance Authority and is legal counsel to the Arizona Municipal Water Users Association.
