AI vs H2O: Can Data Centres Sustain the Water Load?
The data centre industry is undergoing explosive growth, fueled largely by the rise of AI and cloud computing. But this progress comes with a price—intensified pressure on already-stressed water utilities. The newly released Black & Veatch 2025 Water Report reveals a startling gap between the industry’s expansion and utility preparedness to support its growing water demands.
According to the report, over 54% of water utility stakeholders surveyed admitted they have not accounted for the water demands of AI-powered data centres in their short- or long-term planning. A further one-third of utilities are unsure if such plans exist at all.
The Role of Water in Data Centres:
AI-intensive data centres require vast amounts of water for cooling—sometimes millions of gallons annually per facility. While this is essential to prevent overheating of critical infrastructure, it raises serious sustainability concerns and threatens national water supplies.
Despite rising media coverage and environmental awareness, only 14% of utilities have faced direct demand from data centres so far. However, this is expected to rise, especially in rural communities where infrastructure is less robust.
Is Water Reuse the Answer?
Though only 12% of utilities currently report increased demand for recycled or reused water, this figure is expected to grow. As AI technology proliferates, repurposed water may become the cornerstone of sustainable cooling solutions.
Credit: Black & Veatch 2025 Water Report
