Australia's data centre boom is causing significant water consumption challenges, with facilities expected to use 47 billion litres annually. These centres require extensive cooling, with even small operations using enough water for 200 homes yearly. The industry lacks transparency in water usage reporting, focusing historically on power rather than water efficiency. Data centres often strain urban water supplies through evaporation and discharge. Solutions emerging include circular water approaches, advanced cooling technologies, and wastewater recycling. Despite industry summits and international pressure for better reporting, Australia's planning policies remain inadequate regarding water targets for data centres, creating sustainability concerns in drought-prone regions.