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Analysis: Big Tech is building thirsty AI data centers in highly “water stressed” areas

Big Tech is currently on a building spree, setting up massive power-hungry data centers all over the world to power the current AI frenzy.

The huge amounts of energy required to run these data centers has led companies like Microsoft, Elon Musk’s xAI, Meta, and Google to come up with some creative solutions for supplying that energy, including firing up long-closed nuclear power plants, hauling in dozens of portable (unregulated) gas turbines, and reopening gas- and-coal-fired power plants.

Many new data centers are building substantial renewable energy projects to stay green.

But it’s much harder to scale up another crucial resource needed for these data centers: water. A new analysis from Bloomberg looked at the places where large data centers are being built around the world, and found a troubling trend:

“Bloomberg News found that about two-thirds of new data centers built or in development since 2022 are in places already gripped by high levels of water stress. While these facilities are popping up all over the country, five states alone account for 72% of the new centers in high-stress areas.”

The analysis also found that the problem was especially severe in China, where more of the population lives near high water-stressed areas.

Many new data centers are building substantial renewable energy projects to stay green.

But it’s much harder to scale up another crucial resource needed for these data centers: water. A new analysis from Bloomberg looked at the places where large data centers are being built around the world, and found a troubling trend:

“Bloomberg News found that about two-thirds of new data centers built or in development since 2022 are in places already gripped by high levels of water stress. While these facilities are popping up all over the country, five states alone account for 72% of the new centers in high-stress areas.”

The analysis also found that the problem was especially severe in China, where more of the population lives near high water-stressed areas.

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Intel pops on reported Apple chip deal

Intel soared more than 14% on a Wall Street Journal report saying the company has reached a preliminary agreement with Apple to manufacture chips for the iPhone maker. Intel, already on a tear as of late, jumped earlier this week when Bloomberg first reported the two companies were in talks. It’s still unclear which chips Intel would manufacture for Apple, which has been facing supply constraints for its iPhone as well other products.

In any case, the deal could help Apple ease supply constraints that have hit some of its products and reduce its reliance on longtime partner TSMC, as it aims to bring more chip manufacturing stateside.

In any case, the deal could help Apple ease supply constraints that have hit some of its products and reduce its reliance on longtime partner TSMC, as it aims to bring more chip manufacturing stateside.

Microsoft CEO Satya Nadella (R) greets OpenAI CEO Sam Altman during the OpenAI DevDay event

Emails show Microsoft wasn’t impressed by OpenAI’s early work, but wanted to keep it from Amazon

OpenAI wanted further Azure computing discounts, but Microsoft didn’t think it was on the verge of a breakthrough.

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Wedbush’s Dan Ives raises Apple price target to $400 on $15 billion AI services opportunity

Apple may not have a frontier AI model or a fully functional AI assistant, but that won’t stop the company from throwing its weight around in the “AI revolution,” according to Wedbush Securities analyst Dan Ives. That’s enough for Ives to raise his price target for Apple shares to $400 from $350.

Underpinning that jump is what Ives sees as a $15 billion annual revenue opportunity for Apple in AI services from monetizing other companies’ models by distributing them to its 2.5 billion iOS users. Ives estimates that in the coming years, roughly 20% of the world’s population will access AI through an Apple device, calling it the “consumer hub of AI.”

That new era, Ives expects, will officially kick off at Apple’s developer conference in June, where he expects Apple to “finally unveil its AI strategy.”

tech

Tesla’s Model Y just cleared a new federal safety bar

The National Highway Traffic Safety Administration announced today that Tesla Model Ys manufactured after November 12 were the first to pass the agency’s new advanced driver assistance system tests, which are now part of the New Car Assessment Program. According to NHTSA, Tesla tested the 2026 Model Y and submitted the test results to the organization for review.

“By successfully passing these new tests, the 2026 Tesla Model Y demonstrates the lifesaving potential of driver assistance technologies and sets a high bar for the industry,” NHTSA Administrator Jonathan Morrison wrote in the press release. “We hope to see many more manufacturers develop vehicles that can meet these requirements.”

The new tests include:

  • Pedestrian automatic emergency braking

  • Lane-keeping assistance

  • Blind spot warning

  • Blind spot intervention

The milestone offers Tesla highly coveted regulatory validation, as it seeks to spur usage of its Full Self-Driving (Supervised) tech.

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