Well, pull up a chair, because you're going to hate this conversation!
There are two parts to the issues around AI, at least when we're only talking about the ones you brought up.
The first part, which most people quietly shove under the floorboards and try to ignore, is that the current AI ecosystem is heavily characterized by the hypercapitalist mess. Much of what LLMs actually are does not necessarily pose a threat to the world order, nor does it necessarily involve environmental degradation. Saying "AI bad because <insert everything wrong with capitalism>" isn't really an anti-AI argument, it's an anti-capitalism argument. Most journalists are not brave enough to point this out, much less accept it, much less the consequences of saying that maybe unfettered robber-baron great-man titans-of-industry anarchocapitalism ain't all sunshine and gravy all the time.
With that out of the way... the facts around AI's environmental impact and world-ending risks are not as clear-cut as the popular conscience has absorbed. Hysteria is just so damn easy to do, you know? Fox has been at it for years, now it's the Left's turn to ignore all the details and just overreact to headlines! Awesome.
The strain on municipal water grids is another consequence of shitty cost-cutting run amok, amplified by a steep learning curve on the part of cities trying to attract high-value businesses before anyone knew what the landscape looked like yet. They gave out bad permits. The electricity situation is very similar: they could be expected to pay their fair share and actually invest into community infrastructure and clean energy projects, but in most early high-profile cases, they haven't been. Andy Burnham's UK government is doing this much more intelligently, and we'll see the actual downside of that soon, namely that certain skeevy corporations will just off-shore their datacentres in more friendly jurisdictions. There's an interesting parallel with how scabs undercut collective bargaining, you might say. This is capitalism being an unmitigated disaster yet again, you might say.
Now, as for ending the world or causing human extinction... it is also almost entirely a load of complete bullshit. The modern AI safety movement, to which all of the Silicon Valley leaders subscribe, originated with a creepy neckbeard named Eliezer Yudkowsky. Yudkowsky's reasoning depends on a crucial, catastrophic assumption, which is that creating an actual god that we cannot control would be a bad idea. It has never been proven, nor can it be proven, that AI research will actually lead to this result.
More importantly, Yudkowsky only says this because he has a deep-seated desire to take over the world with his own AI, using something called Coherent Extrapolated Volition. He is mad about not being in charge, and is still recruiting cultists to help him, which he charmingly has dubbed Rationalists, as though Rene Descartes has something to do with fucking over the whole planet. (See Holly Elmore, "The Case Against Eliezer Yudkowsky" on YouTube.) The tagline that AI needs safety engineering is the 'public' version of their secret knowledge, one curated to sound reasonable to a layperson; the true version is something more akin to "only people who think like us can be allowed to use AI to direct the future of humanity." (The recruitment methods self-select for vulnerable people with autism, which makes these pills much easier to swallow.)
When Anthropic's CEO, Dario Amadeo, talks about AI being unsafe, he is usually literally citing Yudkowsky; Amadeo is a true believer and has been . Conversely, when Altman says AI could cause human extinction, he's just parroting what everyone else is saying because he thinks it sounds sick as fuck to investors. Both of them are imbeciles, but it's not clear which is more dangerous. Everyone else in the world is referencing either Yudkowsky or Altman through various levels of broken telephone. Do not listen to any of them. Actual AI safety work is important, but much more humble in the problems it confronts.
Having said all that, we shouldn't be unhesitatingly pro-AI. There are still lots of places and situations in which its usage is inappropriate or needs to be nuanced. However, we can squarely put "going to end the world" and "ruining the environment" under the "greed is bad, actually" category. Recognize the greedy assholes responsible as the greedy assholes they are, and the narrative evaporates.