I was encouraged to see water taking center stage at the World Economic Forum Annual Meeting in Davos this year. For perhaps the first time, water was a vital component of discussions about what will ultimately shape our planet’s future and global economy. It was a pleasure to join my fellow panelists in the flagship session, 'Water at a Tipping Point,' where we explored both the challenges and opportunities of managing the world’s most essential resource: water.

Water is not a resource we can create more of. Instead, we must shift our focus towards reusing and optimizing the limited amounts we already have. Projections indicate a staggering 56% gap in water supply and demand by 2030, well before considering the demands imposed by rapid advancements in AI.

To put this into perspective, the world’s total water supply fits within an 860-mile-wide bubble (1,400 km), and less than 1% of that is usable fresh water, which would fit into a mere 35-mile bubble (56 km). We face a real challenge ahead!

Moreover, the anticipated water requirements associated with growing demands for AI and digital solutions add another layer to this dire situation. The market for AI is projected to surge from $85 billion in 2022 to $1.5 trillion in 2040. This growth will necessitate additional power supply equivalent to that of the annual needs of India while requiring enough water to meet the annual drinking needs of the entire United States.

Fortunately, there are existing solutions we can leverage. In fact, Ecolab has the technology to help businesses produce more across their operations with less water while reducing costs across multiple industries. The key lies in adopting and transitioning to innovative water circularity solutions. Here is where I recommend we start:

Recognize water as an enabler: AI is transforming industries, but it requires substantial water resources, a challenge in water-scarce regions. Data centers are moving to optimize water availability, highlighting this shift in priority.

Redesign our processes: The idea of 'wastewater' is an engineering flaw. By reengineering how we use water, we can eliminate wastewater altogether and ensure that every drop is utilized effectively.

Establish country-wide water plans and partnerships: We need new frameworks, policies and investments. More than $436 billion in identified opportunities in water-related projects await us, but it requires collaboration between business and government to unlock this potential.

The connection between water use, energy output and our economy is critical. Up to 75% of energy consumption is associated with managing water—treating, transporting, heating, and cooling it. By managing our water in a circular construct, we can create meaningful savings in energy and costs while enhancing our carbon footprint.

Ultimately, the conversation around water management is not solely about ethics or environmental stewardship—it's about economics and sustainable growth. At Ecolab, we look forward to working together across industries and governments to unlock new growth opportunities and ensure a water-secure future for generations to come.