Vast Water Consumption Amid Digital Growth
Australia is experiencing a surge in new data centre facilities, driven by skyrocketing demand for cloud computing, artificial intelligence, and digital storage. However, this rapid growth comes with a hidden cost: **enormous water consumption**. It is estimated that Australian data centres will consume approximately
47 billion litres of water per year. This figure highlights growing concerns about the sustainability of this essential digital infrastructure in a country regularly challenged by droughts and water scarcity[1].
Why Data Centres Use So Much Water
Data centres require significant cooling, often relying on water-intensive systems to maintain optimal operating temperatures for their massive banks of servers. For perspective, a typical small one-megawatt data centre with traditional cooling methods can use more than 26 million litres of water each year—enough to supply over 200 homes[2][3]. Larger facilities can draw even more, sometimes using as much electricity as 50,000 homes[1].
Lack of Transparency and Regulation
A key issue is that water use by data centres is often
vaguely reported or not disclosed at all. Unlike electricity, which is regularly tracked and discussed publicly, water consumption metrics are frequently absent from both company reporting and regulatory frameworks. Most operators have, until recently, focused on power efficiency over water impacts, leaving a significant data gap[3].
Challenges for Water Management
- Many data centres are located in or near urban centres, placing direct stress on municipal water resources.
- Cooling water is often lost to evaporation, reducing the amount that can be recaptured or treated for reuse[2].
- Some facilities discharge water after use, occasionally raising questions about water quality and thermal pollution.
- Water drawn from stressed watersheds can further threaten local ecosystems and water access for communities[3].
Emerging Solutions and Innovation
The sector is under growing scrutiny to address its water footprint:
- Many operators are adopting the One Water or circular water approach, aiming to capture, treat, and reuse water internally rather than relying solely on fresh supplies[2].
- Best-in-class data centres are experimenting with advanced cooling technologies, including air-cooled heat exchangers, direct liquid cooling, and even floating data centres that harness natural water bodies for temperature regulation[3].
- Wastewater recycling and partnerships with municipal water utilities are increasingly common, reducing reliance on potable water for cooling and other non-critical uses[2].
Accountability and Future Developments
Industry and government initiatives are pushing for more rigorous reporting standards:
- Internationally, working groups and government mandates are encouraging more transparent disclosure of data centre water use, mirroring established energy reporting practices[3].
- Policy summits, such as the Australian Data Centres Power & Water Summit, are driving conversations on how to align growth with sustainable targets and community expectations[1].
However, experts warn that Australia’s planning policies remain insufficiently detailed regarding clear water targets for new and existing data centres. Without transparent, enforceable measures, the risk remains that digital infrastructure may worsen water challenges in already-vulnerable regions.
The Way Forward
As Australia continues to expand its data centre capacity, sustainable water management must become a priority alongside energy efficiency. This will require innovative water reuse strategies, improved regulations, transparent reporting, and ongoing technological advancements—all necessary steps for a truly resilient digital future.
For further discussion on the role of AI tools in optimizing data centre operations, including advanced analytics and predictive maintenance, see
Chatgpt.
Policy summits, such as the Australian Data Centres Power & Water Summit, are driving conversations on how to align growth with sustainable targets and community expectations[1].
Policy summits, such as the Australian Data Centres Power & Water Summit, are driving conversations on how to align growth with sustainable targets and community expectations[1].
