Concern the UK’s AI ambitions could lead to water shortages

A government spokesperson said: “We recognise that data centres face sustainability challenges such as energy demands and water use – that’s why AI Growth Zones are designed to attract investment in areas where existing energy and water infrastructure is already in place.”

In addition, recent changes made by the water regulator Ofwat would “unlock £104bn of spending by water companies” in the next five years.

The data centre industry argues that modern sites are already more efficient. Alternative cooling methods which do not require much water, such as free air cooling and dry cooling, are evolving.

Closed-loop cooling, which involves reusing water, will be deployed in Microsoft’s new data centres in Phoenix and Wisconsin.

Aaron Binckley, vice president of sustainability at Digital Realty, acknowledged criticism around data centres’ water usage but claimed that the sector was making “significant strides”.

His company, which has 300 data centres worldwide, is trialling a new AI tool which analyses operational data and identifies water-saving measures. He says it is predicted to conserve nearly 4m litres of water per year.

Clearly, that is currently an expectation rather than a reality, but Mr Binckley says it proves that “AI can drive sustainability as well as technological progress”.

In 2024 the Environment Agency wrote in a blog, external that by 2050, England alone would need an extra five billion litres of water every day – it says this is the equivalent of two million wheelie bins-full – just to serve the population.

But the regulator now needs more data in order to factor in new data centres’ future needs.

For the time being, it is urging data centres to forecast and plan their water consumption – and to explore their own sources of water, such as water reuse.

“Meeting the increased water demand is not just for the water industry to solve,” says a source.