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How do you imagine your "local" AI was trained? Let me tell you, in a massive datacenter that used gallons of water.
Running AI is a smaller problem. A ton of power and resources go into training them.
Not to mention all the stolen work they are trained on.
So this water that gets used, what happens to it? Does it vaporized into elementary particles, or... ?
I've worked with data centers and super computers. They do use a lot of water! But is used for cooling. It runs through a pipe, absorbs some heat, and then gets pushed back into the original water source. That or it is put into a closed loop system which only keeps the water trapped for the lifetime of the project, and is then recycled back into circulation.