AI Data Centres: Can Water Companies Handle the Heat?

Large data centres that are used to power AI often require large quantities of water to keep essential systems cool.

Whilst the technology industry is eager to start developing the cooling solutions required that support this innovation, there are concerns that it could throw up additional sustainability challenges. Notably, data centres using higher levels of water could have an impact on national water supply.

With the UK government committing to the construction of multiple data centres nationwide to increase economic growth, there are worries that demand could outstrip supply.

According to the BBC, UK water industry company Thames Water is already speaking with the government about plans to confront possible water shortages. 

Why AI is so thirsty

As AI and other emerging technologies continue to dominate the industry, the growing water consumption of data centres is becoming more of a challenge.

Operators are also looking for new solutions to prevent their facilities from draining the world’s power. As a result, companies are starting to turn to liquid cooling and immersion cooling solutions to keep equipment cool and reduce energy waste. 

AI is not just hungry for power, it also demands a lot of water. As more companies turn to AI for their solutions, data centre operators are having to turn to more solutions to keep essential systems that house AI cool - hence increasing their water use.

A single data centre can have cooling towers that require millions of gallons of water each year to prevent critical infrastructure from overheating. 

Experts weigh in

UK experts have argued that the country’s current water provision is not enough for the future. They explain that alternative options are required, with water companies working with the government to manage water supply.

In 2024, the Environment Agency wrote via a blog post Meeting our Water Needs for the Next 25 Years that by 2050, England alone would need an extra five billion litres of water every day - the equivalent of two million wheelie bins (trash cans) just to serve the population.

Likewise, the National Engineering Policy Centre (NEPC) has also called for the UK government to make tech companies submit mandatory reports on their energy and water consumption and carbon emissions. This is so that data centres are designed to use fewer vital resources from the beginning.

“Surging power consumption from data centres driven by AI workloads could see total US energy demand outstrip generation capacity by 2028,” the NEPC explained in its report. 

“Even looking towards less dramatic projections – the consumption of energy and withdrawal of water from local networks poses a significant potential challenge, especially as data centres tend to be concentrated in certain localities.”

CEO of Foxglove Martha Dark explains to the BBC: “The government must urgently explain how its plans for new data centres will not threaten our long-term supplies of drinking water.”

Holding data centres responsible

Water usage is starting to creep up, particularly from the leading data centre operators around the world. Both Google and Microsoft have reported year on year increases in data centre water consumption since 2020 to support their AI and cloud developments. 

International law firm White & Case explains that such accelerated data centre development is likely to bring both opportunities and risks, but that AI has the potential to create the solutions, instead of being destructive on global water resource.

“The sobering reality of water scarcity, working towards a reduction in water usage is the next frontier in this critical sector,” its report reads. 

“Unsurprisingly, it is likely to be the AI capability that data centers store and process, which will be able to generate the innovative solutions required to solve the problem of water sustainability and replenishment.”

Some data centre companies are starting to find solutions to tackle the problem. Microsoft for instance has announced its plans to implement water-free cooling systems across its new data centre developments.

Such a feat would mark a critical shift in how data centre operators approach managing high-density AI workloads. 

It is becoming more urgent for data centre companies to work with local authorities and confront their use of resources like water. Particularly in the UK, where the government recently announced plans to overhaul its national infrastructure to power ahead in AI with its new AI Growth Zones.

A UK 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.”

Explore the latest edition of Data Centre Magazine and be part of the conversation at our global conference series, Tech & AI LIVE and Data Centre LIVE. 

Discover all our upcoming events and secure your tickets today.

Data Centre Magazine is a BizClik brand