Europe’s ambitious artificial intelligence strategy is facing a critical challenge: the significant water consumption required by AI mega projects, particularly liquid-cooled servers. This raises alarms in some of Europe’s driest regions, highlighting a potential conflict between technological advancement and environmental sustainability. The positive aspect is the recognition of this issue, prompting discussion about responsible AI development. However, the negative is the potential strain on water resources, which could lead to operational limitations, increased costs, and environmental degradation. Investors in AI infrastructure and related technology should consider companies’ water management strategies and the regulatory landscape. The long-term success of AI initiatives may depend on developing more water-efficient technologies and responsible deployment practices.