China faces a significant challenge supporting its large population and growing economy with limited freshwater resources. Compounding this, economically developed regions often lack abundant water. Beijing plans a massive expansion of AI data center infrastructure over the next five years, raising concerns about exacerbating an existing water crisis. China's data centers already consume a substantial amount of water, with a significant portion located in water-scarce areas. The country's strategy to move computing capacity west for cheaper, renewable energy is problematic because these regions also suffer from water scarcity.This geographical shift creates a fundamental trade-off, as water allocated to AI data centers competes with agriculture, which is crucial for food security. While China is improving water efficiency in various sectors, efficiency gains alone may not offset the increased demand from rapid AI growth. Beijing aims to power data centers with 80 percent green energy by 2030, but integrating variable renewable sources with AI's fluctuating demands is difficult. Improved power and water efficiency could significantly reduce the data center water footprint by 2050, but these are potential scenarios. The rapid growth of AI demand could outpace these efficiency improvements, leading to increased total water consumption.If water becomes scarce around AI hubs, China might restrict data center development, increasing costs and potentially forcing relocations. This could intensify competition for water among agriculture, cities, and industries. Ultimately, China cannot manufacture freshwater at the scale required to meet the burgeoning demands of its AI expansion, industry, agriculture, and public use. Water availability, constrained by geography and climate, may become a critical limiting factor for China's AI ambitions.