For too long, water has taken a backseat when it comes to climate discussions. But in 2025, we believe that’s set to change. With AI’s growing influence, a long-overdue investment shift, and the rise of smarter water networks, the industry is poised for a shake-up.
Here’s what industry leaders Tom Freyberg, Saša Tomić, and Dragan Savić say is next for water.
Tom Freyberg: There’ll be a surge in water technology investments
For years, water has largely been overlooked in climate tech investment. Between 2019 and 2020, and despite its critical role in sustainability, water innovation accounted for just 3% of climate finance. However, this is about to change, says Tom Freyberg.
My prediction for 2025 is that more climate-centric funds will take an active interest in water treatment, water technology, and water innovations and make their first investments. Historically, only 3% of climate investments have gone directly into water. It’s been underappreciated, underinvested, and taken for granted. Carbon has sucked the air — quite literally — out of the room,” Tom says.
Tom says that investment funds are beginning to realize the true importance of making sure clean, healthy water is abundant. While this shift won’t happen overnight, 2025 will likely be the year when water innovation stops being an afterthought and starts being a priority.
Saša Tomic: We’ll see conversations shift to the massive unseen costs of AI
AI and Generative AI are transforming industries and organizations at a breakneck pace, and the water sector is no exception. But while many conversations center on the transformative benefits of both, Saša Tomic warns that the water industry must start addressing the hefty costs of using both, including their staggering resource demands.
“In the future, I predict that we will need to shift from focusing only on the benefits of AI to addressing its costs,” says Saša.
A single server rack — a cabinet of around 12 computers — requires 30 to 60 kilowatts of electricity, and each kilowatt hour uses five to 10 gallons of water for cooling. Thus the equivalent water use of a single, large AI server farm — which could have tens or hundreds of thousands of server racks — is proportional to a mid-sized city that houses up to a million people.”
Saša says that tech giants are already turning to nuclear power to address the immense power needs. He mentions Microsoft’s partnership with Constellation Energy to restart Three Mile Island (and Microsoft’s intention to buy all the power it produces), and Google’s collaboration with Kairos Power to develop a fleet of advanced nuclear power plants in California.
“However, while they continue to address energy needs, the immense water needs are being ignored. So, while AI will bring great advancements and opportunities to the water industry, it will also put a strain on our very limited water resources and have huge implications for water utilities and local communities. My prediction for 2025 and beyond is that when we talk about AI, we will also be talking about water needs,” says Saša.
Dragan Savić: Generative AI and digital twins will join forces
Digital twins — virtual models that help monitor and predict water network behavior — are already a pillar technology in safeguarding and transforming the world’s water supply. But in 2025, Dragan Savić predicts an even greater shift: the integration of Generative AI.
“My prediction for 2025 is that there will be more and accelerated uptake of digital twins in the water sector,” says Dragan. “But on top of that, we will use generative AI to question digital twins.”
For example, an operator can ask why an anomaly is showing up on their screen, what caused the anomaly, and what can they do to better intervene. And Generative AI will run the model again and provide both verbal and visual answers.”
Dragan believes that the integration of Generative and digital twins will enhance their capabilities, promising a more efficient, data-driven approach to protecting one of our most vital resources.
A promising 2025 awaits — but the future deserves our attention, too
2025 will be a year of huge transformation. As AI’s resource demands come into focus, investment into water innovation gains traction, and digital twins become smarter, it’s time for the water sector to reimagine sustainability and innovation on a whole new level.
At Qatium, we believe in accessible, digital water management for utilities of all sizes. Our mission? To equip teams with the tools to transform water management and tackle climate change. Let’s shape the future of water together.
