Can Central Java afford the water cost of AI?

Central Java faces water challenges that could be exacerbated by a planned AI center. Ooredoo Hutchison, in collaboration with Ooredoo Group, Nokia, and NVIDIA, intends to develop the Zankore AI infrastructure platform in the region. Scheduled for construction in Batang, Central Java, between 2027 and 2028, the 1-gigawatt facility will undergo phases of development, with the initial 200-megawatt phase commencing in the first half of 2027.

AI centers require substantial electricity, but also significant amounts of water for cooling servers. This raises concerns about the availability of water for both the AI servers and local communities, as Central Java already grapples with water stress. The water usage of AI factories is substantial, with a 2025 study estimating that Microsoft's approach would require about 1.9 liters of water per kilowatt-hour of electricity consumed.

Consequently, Zankore's first phase could evaporate between 4.8 million and 9.1 million liters of water daily, potentially consuming the equivalent of the 75.46 million liters of water prepared by the Central Java government during the 2026 drought crisis within just eight to 16 days. The NVIDIA chips central to Zankore's infrastructure could utilize evaporative cooling towers, though alternatives like seawater-based cooling may introduce other environmental risks.

Zankore's investment of approximately Rp 82 trillion (US$4.59 billion) surpasses the five-year target for the Batang Special Economic Zone. Despite the government's investment of Rp 409.7 billion from the national budget for raw-water infrastructure, Zankore's estimated water demand could surpass the entire capacity of the infrastructure it relies on.

The economic benefits of AI infrastructure are accompanied by environmental costs, particularly in water usage, which could disproportionately impact local communities. With 63% of Zankore's shares held by companies from Qatar, the United States, and Finland, the economic gains primarily accrue to foreign shareholders, while part of the environmental burden may fall on the local population.

As Central Java faces a drought alert and land subsidence issues, the government must ensure transparency regarding Zankore's water consumption, cooling technology, and contingency plans during droughts. Moreover, clear rules for water allocation between industrial users and local communities are necessary. The AI hub ambition should not compromise the water security and land stability of communities already facing challenges.