In an Expert Focus article for Water Briefing, Inge Delobelle, Executive Vice President and CEO of Grundfos’ Industry Division, discusses a key question missing from the UK's AI debate: Where will the water come from?

Inge Delobelle: The UK's AI ambitions are driving unprecedented growth in data centre capacity. These facilities are becoming essential infrastructure for economic growth, competitiveness and innovation. Analysis by techUK suggests that data centre construction and operation could contribute an additional £44 billion in Gross Value Added annually between 2030 and 2035, while the government has recognised their importance by designating data centres as critical national infrastructure.

Yet, as we plan the next generation of digital infrastructure, one critical resource deserves far greater attention: water.

Data centres rely on water for cooling, and some of the largest facilities can consume up to 2 million litres a day, equivalent to the daily needs of around 80,000 households. As AI drives demand for larger and more powerful facilities, understanding where this water is needed, and how efficiently it is used, will become increasingly important.

The challenge is that water availability is not a national issue. It is a local one.

While the UK is often considered a water-rich country, the UK Government and the Environment Agency project a public water supply shortfall of 5 billion litres per day by 2055, alongside a further 1 billion litre shortfall for economic activity. Those pressures are concentrated in the South and East of England, which are also the regions attracting the greatest concentration of data centre development.

This is not an argument against data centre growth. The UK needs digital infrastructure to support AI, industry, public services and future economic development. But if we want that growth to be sustainable, water needs to become a much bigger part of the planning conversation.

Water scarcity is the missing constraint in the UK’s data centre ambitions

The challenge is already becoming visible. In the Southeast of England, a region classified as severely water stressed, data centre water consumption increased by 170 per cent between 2021 and 2025. As more facilities are developed, policymakers, utilities and local authorities need a clearer understanding of how water demand is evolving at a regional level.

Today, however, reporting of data centre water consumption remains fragmented and inconsistent.

That creates a fundamental challenge. You cannot effectively plan for future demand without reliable information about current consumption. Better visibility of water use would help decision makers make more informed choices about infrastructure investment, planning decisions and long-term resource management.

As energy reporting becomes increasingly common across the industry, water should receive the same level of attention. Consistent reporting of water consumption and water efficiency would provide a stronger foundation for sustainable growth.

Technology can decouple growth from water stress

The good news is that this is not a technology problem.

The technologies needed to significantly reduce water consumption already exist. Closed loop liquid cooling systems can draw heat away from servers with minimal water loss, while smart pumps, controls and heat exchangers can optimise pressure, flow and heat distribution throughout a facility. These systems provide a highly efficient alternative to traditional evaporative cooling approaches that require regular water replenishment.

The challenge is that policy has not always kept pace with what technology can deliver.

In highly water stressed regions, incentives and performance standards could help accelerate adoption of proven technologies, including closed loop cooling solutions and the use of reclaimed water. This would allow development to continue while reducing pressure on local freshwater resources.

Policy reform should make water efficiency a core planning test

The UK has an opportunity to become a global leader in sustainable data centre regulation. If it wants to lead in AI while protecting long term competitiveness, it must build a regulatory framework that enables development while safeguarding the resources that make it possible.

The first step is greater transparency. You cannot manage what you do not measure. Consistent reporting of water consumption and water efficiency would give policymakers, utilities and planners a clearer picture of current and future demand, supporting better decisions about where capacity can be added and how local resources should be managed.

However, reporting alone is not enough. Water efficiency must become a core planning consideration for new facilities and major expansions. Planning processes should assess grid capacity, local water availability, cooling technology, pump and motor efficiency, water efficiency and heat reuse potential together, ensuring developments are aligned with local resource realities from the outset.

Approvals and incentives should then be linked to verified performance. In highly water stressed regions, developers should be required to meet ambitious Water Usage Effectiveness (WUE) targets. These targets should encourage the adoption of proven approaches such as closed loop cooling and the use of reclaimed or non-potable water, while allowing operators flexibility in how they achieve them.

This would create a clear pathway for sustainable development in high demand areas. By demonstrating efficient water use and limited impact on local water resources, developers can secure planning permission while supporting long term resilience. In this way, water efficiency becomes an enabler of growth rather than a constraint on it.

Collaboration can turn water and heat constraints into opportunities

Technology alone will not solve the challenge. Many of the most effective solutions depend on collaboration between data centre developers, water companies, local authorities and heat network operators.

Waste heat is a clear example. Data centres convert almost all the electricity they consume into heat, creating significant opportunities for heat recovery. That heat can potentially be captured and redistributed through district heating networks to support nearby homes, businesses and public buildings.

However, these opportunities often remain unrealised because the necessary infrastructure and commercial arrangements are not yet in place.

Government can play an important role by supporting heat reuse assessments, encouraging connections to district heating networks and providing greater certainty for investment. The same principle applies to water. Reclaimed water networks could help reduce reliance on potable water supplies in areas where data centre development is concentrated.

Water availability will define the next phase of rollout

Data centres will play a central role in shaping the UK's digital future. The opportunity they represent for economic growth, innovation and AI development is significant.

The question is not whether we need more data centres. The question is whether we are planning for them in a way that reflects local resource realities.

Water availability cannot be assessed through national averages alone. It must be understood at a regional and local level. That starts with better visibility of how water is being used today and how demand is likely to evolve tomorrow.

The technology to reduce water consumption already exists. The expertise exists. What is needed now is a policy framework that brings greater transparency to water use, better integrates water considerations into planning decisions and encourages the adoption of proven efficiency solutions.

The UK does not have to choose between accelerating AI adoption and protecting local water resources. With better reporting, smarter planning and clear water efficiency standards, it can achieve both.