The silent resource: water and the global green rush
Ana Paula Chagas
Simões Pires Advogados, São Paulo
Roberta Aronne
Simões Pires Advogados, São Paulo
Roberta.aronne@simoespires.com
Water in the shadows of the climate agenda
As global efforts accelerate toward decarbonisation and green innovation, water – the foundational element of all life and development – continues to be marginalised. Despite being essential to agriculture, industry, energy and health, water scarcity remains a secondary concern in international discourse.
In Brazil, water-related conflicts have surged by 481 per cent over the past two decades, fueled by disputes between industrial sectors, local communities and fragile ecosystems. Yet, as the country positions itself as a strategic hub for green hydrogen and data infrastructure, little attention is paid to the water cost embedded in these solutions.
Take green hydrogen, for example: touted as a zero-emission fuel, its production through electrolysis demands ultra-pure water. Similarly, the rise of artificial intelligence has sparked a boom in water-intensive data centres, which require millions of litres daily for cooling systems. These emerging industries, while central to the ‘green transition’, risk intensifying local water stress and reinforcing global asymmetries in resource distribution.
Green hydrogen is marketed as a climate-friendly solution for hard-to-abate sectors like steel, aviation and maritime transport. Yet, its promise is built on a resource many nations – including Brazil – cannot afford to take for granted.
Electrolysis-based hydrogen production requires water with conductivity levels below 5 µS/cm, equivalent to ASTM Type I or II laboratory-grade water. This often necessitates costly pre-treatment or desalination, significantly increasing the energy footprint of the process.
For each kilogram of hydrogen produced, 9 to 22.4 litres of water are consumed — depending on the technology. This may seem modest until scaled to national or export-oriented ambitions. In countries where water access is already unequal, diverting high-quality freshwater to meet international hydrogen demands could undermine domestic priorities and deepen social inequities.
Artificial intelligence is reshaping industries and governance – but its physical infrastructure has a rarely discussed environmental footprint. Data centres, the backbone of the digital economy, are voracious consumers of both energy and water.
In 2022, Google reported a 22 per cent increase in global water consumption, largely due to the expansion of its data centres. A single facility can consume between 11 and 20 million litres of water daily – equivalent to the needs of a mid-sized city.
Brazil’s clean energy matrix and relative water abundance have made it a target for digital infrastructure investment. Today, 46 new data centres are planned or under construction across the country. Meanwhile, the sector explores innovations such as submerged data centres – like China’s recent project near Hainan Island. While they reduce freshwater use, these ventures raise concerns about thermal pollution and its impact on marine ecosystems.
This introduces a paradox: in Brazil, where hydropower is the primary source of electricity, we use water to generate power for infrastructure that also consumes vast amounts of water. In a climate-unstable world, this cycle is increasingly unsustainable.
The notion that Brazil may once again serve as a supplier of raw materials for global industry is no longer hypothetical – it is already happening. Under the banner of green growth and digital transformation, the country is exporting not only agricultural commodities, but also strategic resources like freshwater, biodiversity, rare earths, lithium and niobium.
Often, these exports occur with minimal value addition, weak regulatory oversight and disproportionate local impacts. While profits accumulate abroad, the environmental and social costs remain local.
This new extraction cycle is framed as sustainable – yet it echoes colonial patterns of exploitation. The so-called ‘green transition’ risks replicating historical injustices under a different name. To move beyond this model, Brazil must adopt a sovereignty-centered strategy, ensuring that its natural resources serve national and collective interests rather than external agendas.
Water is not simply a resource – it is critical infrastructure for the future. Without it, there is no agriculture, no green hydrogen, no AI and no meaningful climate action.
Yet, we continue to treat water as a peripheral concern. We allow it to be allocated to high-impact industries with limited transparency and questionable local benefit. We fail to recognise its role in geopolitical and development decisions.
This must change. Brazil needs clear criteria for approving water-intensive projects, including social participation, environmental safeguards and fair benefit-sharing. Supporting technological innovation is not incompatible with environmental responsibility – but it requires conscious policy choices.
If Brazil aspires to lead the global climate agenda, it must start by ensuring that its own transition is equitable, informed and sovereign. That begins with water – not as an invisible input, but as a strategic foundation for a just and sustainable future.