In a blog posted by Scottish Water, Colin Lindsay, Developer Services Manager at Scottish Water Horizons says that locating data centres in the right place is key to ensuring they are sustainable in terms of water resilience and wider infrastructure capacity.

Colin Lindsay makes the key point that location plays a crucial role here. Data centres sited near wastewater treatment works are far better suited to sustainable cooling solutions. That’s why guiding developments to the right places is just as important as what happens inside the buildings themselves - and it is not just water that this approach applies to.

Colin Lindsay: Scotland is rightly proud of our water. It shapes our landscapes, underpins our economy and is central to our national identity. So when headlines suggest that fast‑growing data centres could threaten water supplies, it’s no surprise people sit up and take notice.

But as with many big infrastructure debates, the reality is more nuanced than the noise suggests.

As artificial intelligence and digital services grow at pace, Scotland has become an attractive location for data centres thanks to our cool climate and renewable energy potential. Yet water – how much is used, where it comes from and who it’s for – has quickly emerged as one of the central concerns within the discussion.

Despite some alternative claims, data centres currently use a very small amount of water in Scotland. Across the 13 facilities already operating here, average use is around 97 cubic metres a day. That equates to just 0.006 per cent of the 1.6 to 1.8 billion litres supplied to homes and businesses every day. To put that another way, currently, in Scotland, libraries use more water nationally than data centres do.

Most existing data centres rely on closed‑loop cooling systems. These are filled once and then continually reused, with only minimal top‑ups required. That means water demand looks very different from the continuous large-scale volumes that are often implied are needed in public debate.

None of this is to dismiss concerns outright. Scotland, like much of Europe, is experiencing greater variability in rainfall, longer dry spells and the growing impacts of climate change. Water resilience is no longer an abstract concept. It’s something that has to be managed carefully and planned for rigorously, something Scottish Water has many teams of experts focused on.

At the same time, interest in new data centres is increasing. Driven by AI and cloud computing, proposals are becoming larger and more complex, and competition between countries to attract investment is intense. It’s entirely reasonable to ask whether Scotland can support this growth sustainably and harvest some of the economic reward.

The answer is yes – but we need to plan properly.

Scottish Water Horizons already in discussions with developers across more than 15 potential sites

At Scottish Water Horizons, our role is to engage early with potential developments and make sure proposals are designed to work for Scotland, not against it. Early engagement matters. We’re already in discussions with developers across more than 15 potential sites. Every proposal will be assessed on its own merits, with a clear priority: protecting household water supplies and the environment first and then supporting economic growth.

One of the biggest misconceptions is that data centres automatically rely on drinking water. In reality, that should be the last resort, not the default. Where circumstances allow, cooling can be supported using treated final effluent – water that has already been cleaned through the wastewater treatment process. Used appropriately, it can meet cooling needs without placing additional demand on public drinking water supplies.

Location plays a crucial role - data centres sited near wastewater treatment works far better suited to sustainable cooling solutions

Location plays a crucial role here. Data centres sited near wastewater treatment works are far better suited to sustainable cooling solutions. That’s why guiding developments to the right places is just as important as what happens inside the buildings themselves - and it is not just water that this approach applies to.

Analysis from the National Energy System Operator suggests that, even with significant growth, Scotland is unlikely to host more than around 20 per cent of the UK’s data centre capacity. This reinforces the importance of being selective about where and how developments come forward, and ensuring sites are aligned with both water resilience and wider infrastructure capacity.

Alongside this, we actively support advanced cooling technologies that reduce both water and energy demand, helping data centres operate more efficiently and with lower carbon emissions from the outset. Our land use planning system should also reinforce the expectation of closed loop systems and use of treated final effluent as the norm for new data centre developments.

For customers and communities, the principle is straightforward: tap water comes first. Safeguards are already firmly in place. Proposals that would require unsustainable volumes of drinking water can be redirected or refused. Long‑term planning helps maintain local resilience even as new development comes forward.

Scotland doesn’t need to choose between innovation, economic growth and environmental protection. We can, and must, embrace all three. Data centres are part of a wider digital economy that supports jobs, research and competitiveness. But they must earn their place by operating within Scotland’s environmental limits.

We will support responsible growth. This means enabling development where it aligns with long‑term water resilience, customer protection and climate ambitions – and being honest where it doesn’t.

Clear evidence, transparency and early planning are what allow Scotland to protect something as precious as water, while making sure our people and economy do not miss out on the opportunities presented by digital investment.