A new study examining water consumption in data centres has recommended introducing a national reporting framework and policy reforms to help manage rising demand while safeguarding water resources.
The research, funded through the Strategic Panel’s Market Improvement Fund (MIF), was delivered by the Water Research Centre (WRc), part of the RSK Group. The report highlights the need for improved monitoring, planning and collaboration as data centres expand rapidly across the UK.
The report on data centre water use recommends measures including mandatory reporting of water consumption and efficiency metrics, improved planning visibility, and reducing barriers to using alternative water sources such as treated sewage effluent for cooling.
Data centre water use and future demand
According to the study, current potable water consumption by data centres in England is estimated at around 1,879,000 cubic metres per year, equivalent to roughly 0.2 percent of the non-household water market. However, the analysis shows that demand is increasing as the sector expands.
Most facilities use relatively small volumes of potable water, with 67 percent of data centres consuming less than 1,000 cubic metres annually. However, the report found that water use is heavily concentrated among a small number of large sites, with the six largest data centres accounting for approximately 65 percent of the sector’s total consumption.
Researchers warn that the rapid growth of digital infrastructure, particularly the expansion of artificial intelligence technologies, could increase water demand due to the cooling requirements of high-performance computing systems.
Cooling systems and water efficiency
Data centres require cooling to remove heat generated by computing equipment and maintain operational stability. Cooling technologies vary widely and may include chilled air systems, liquid cooling or immersion cooling using specialised fluids. Some facilities also use water-based cooling systems which can increase potable water demand.
The report notes that water use in English data centres differs significantly from patterns observed in other jurisdictions, particularly the United States, where water consumption can be substantially higher.
Researchers also highlighted the importance of planning for peak demand periods, noting that data centre cooling demand often rises during hot weather when domestic water consumption is also elevated.
Policy options and regulatory recommendations
The study proposes several policy actions to support sustainable sector growth while protecting water resources. These include the introduction of a reporting framework requiring centralised disclosure of water consumption and efficiency metrics, enabling better benchmarking and planning.
The report also recommends that England consider aligning with European Union practices, including adopting efficiency labels that incorporate both water and energy performance. The EU has already begun developing internationally recognised efficiency labelling under the Energy Efficiency Directive.
Further recommendations include registering data centres within a Critical National Infrastructure framework and improving planning processes to ensure earlier engagement between developers and water companies.
Researchers also encourage increased collaboration between the data centre industry, water utilities, regulators and policymakers to explore alternatives to potable water use, including the potential reuse of treated wastewater for cooling systems.
The research complements wider work by MOSL, the market operator for England’s business water retail market, which is seeking to improve the quality and granularity of water-use data through its Strategic Data Programme.
Liz D’Arcy, Head of Digital Insights at MOSL, said improved data will help utilities better balance supply and demand as new water-intensive industries emerge.
“Our world is changing around us and traditional metrics are no longer accurate enough to support modelling and forecasting. This report provides crucial insight to help us understand trends in the data centre sector and maintain service levels while supporting economic growth,” she said.
The full report is available via the WRc website.
More coverage of water efficiency and resource planning can be found in the H2O Global News Water Management section.
