AI is not just an industry that consumes electricity; it also requires water. Data centers, which operate numerous GPUs, need significant power and water for cooling, and the production of AI semiconductors also requires substantial water resources.
Yoon Suk-dae, CEO of Korea Water Resources Corporation (K-water), is integrating AI into this process. The goal is to ensure a stable supply of water necessary for the AI industry while using AI to predict floods and droughts and to enhance the intelligence of water treatment plants and pipeline networks. We are entering an era of 'water for AI, and AI for water.'
As we discuss the AI era, semiconductors and power are often the first topics that arise. AI data centers, which utilize high-performance GPUs, require a lot of electricity. However, electricity alone cannot sustain these data centers. High-performance semiconductors generate heat during continuous operations, necessitating cooling systems that consume significant amounts of water.
Water is also crucial in semiconductor production. Ultra-pure water, which has had impurities removed, is used in the manufacturing process. To run AI models, GPUs are needed, and to produce GPUs, semiconductor factories are required. Both data centers and semiconductor factories depend on a reliable supply of electricity and water. This is where water policy intersects with advanced industrial policy.
In this context, K-water's role is evolving. It is not just a public enterprise that supplies clean water and manages dams and rivers; it is increasingly recognized as a key infrastructure agency supporting the AI and semiconductor industries.
As competition among AI data centers intensifies, the criteria for their locations are changing. Decisions about where to build data centers must consider not only power and communication networks but also cooling methods and water supply conditions. Similarly, semiconductor production facilities require a stable supply of industrial water.
This is why K-water is gaining attention in the AI era. As the AI industry grows, the importance of securing and supplying industrial water reliably, as well as the need for reuse and efficiency, is becoming more pronounced. Water must now be viewed as a strategic resource that determines the competitiveness of a nation's advanced industries, beyond just a resource for daily life.
Moreover, K-water is not stopping at merely supplying water; it is transforming water management itself through AI. Central to Yoon's vision are digital twin technology, AI water treatment plants, and smart pipeline management. By combining years of accumulated water management experience and data with AI, K-water aims to enhance predictive and decision-making capabilities.
Results are already emerging. The AI water treatment plant was recognized as a global lighthouse in the water sector at the World Economic Forum in 2024, and in January of this year, approximately 9,000 visitors attended K-water's booth at CES 2026 in Las Vegas, leading to export and investment consultations worth about 132 billion won. The smart pipeline management technology also received an award at the Global Mobile Awards during Mobile World Congress (MWC) 2026.
Yoon stated, “2026 will be the year we transition our AI-first strategy into action,” adding, “We will start with water management that protects public safety and support industry and the economy.”
On one hand, K-water supplies water necessary for AI data centers and advanced industries, while on the other, it uses AI to manage South Korea's water more precisely. This is the intersection of water for AI and AI for water.
The climate crisis is also changing water management practices. With repeated heavy rainfall and extreme droughts, it has become difficult to manage dams and rivers based solely on past experiences. K-water's digital twin-based water management creates virtual representations of actual dams and rivers, combining meteorological and hydrological data to simulate various scenarios in advance.
When heavy rain is anticipated, the system analyzes various conditions, such as inflow and outflow rates at dams, to support operators' decision-making. The true value of AI lies not only in responding quickly after a disaster occurs but also in predicting risks in advance to minimize damage.
AI is also being integrated into water treatment plants that produce the water we drink daily. K-water has been applying AI technologies such as autonomous operation, energy management, predictive maintenance, and intelligent imaging to major metropolitan water treatment plants. The goal is to develop an intelligent operating system that comprehensively analyzes water quality, flow rates, energy consumption, and equipment status to find optimal operating conditions.
The same applies to pipelines. Smart pipeline management analyzes data on water pressure and flow rates in the water supply network to detect anomalies. As AI advances, this can evolve from responding to leaks after they occur to a preventive management approach that identifies unusual patterns in advance. The entire water management process, from dams to treatment plants to faucets, is becoming interconnected through data and AI.
One of K-water's significant assets is the extensive water data it has accumulated over many years. Data on rainfall, river levels, dam inflow and outflow rates, water quality, water treatment plant operations, and pipeline networks is continuously generated.
If this data is standardized and utilized for AI training, it can lead to the development of specialized water AI capable of predicting floods and droughts, optimizing water treatment plant operations, and detecting leaks. In the future, multiple AI agents may analyze weather, dam, water treatment plant, and pipeline data individually and collaborate to propose response strategies, evolving into an agentic AI water management system.
The growth of the AI industry presents new challenges. While the demand for water from data centers and semiconductor factories is likely to increase, climate change is also increasing the volatility of floods and droughts. It is essential to maintain a balance between providing stable water for advanced industries and existing water for daily life and agriculture.
Therefore, water policy in the AI era should not merely focus on increasing supply. It must also consider expanding the use of recycled water, improving water use efficiency, and regional water resource conditions. Data centers should not only base their location decisions on power availability but also take into account water supply and local environmental factors.
The management of water resources will become a key factor in South Korea's AI competitiveness. The national transition to an AI-driven economy is not solely a software issue. To implement AI in reality, physical infrastructure such as semiconductors, data centers, power, and water is necessary.
K-water's tasks are twofold: one is to ensure a stable supply of water necessary for AI industries like data centers and semiconductors, and the other is to manage South Korea's water more safely and efficiently through AI. Digital twin technology, AI water treatment plants, and smart pipeline management are making this second task a reality.
In the industrial era, roads, ports, and power networks determined national competitiveness. In the AI era, data centers, semiconductors, and water are emerging as new national infrastructure.
The two lifelines of AI civilization are electricity and water.
For South Korea to become a powerhouse in AI, it is not enough to secure GPUs and data centers alone. It must also prepare the electricity and water needed to operate them reliably. This is why K-water is being recognized as a key infrastructure agency supporting South Korea's AI industry, beyond just being a water management public enterprise.
Yoon Suk-dae, CEO of K-water, is leading the transition of K-water to AI through digital twin technology, AI water treatment plants, and smart pipeline management. He is focusing on providing stable water supply for advanced industries such as semiconductors and data centers while managing floods and droughts in response to the climate crisis. He is establishing an 'AI-first' water management system that supplies water to the AI industry while utilizing AI for water management.
* This article has been translated by AI.
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