The UK faces a critical water shortage that could derail its ambitious datacentre expansion plans, according to Water UK, the trade body representing water companies. In a stark warning to MPs, the organisation labelled government forecasts as 'fatally flawed' for failing to account for the massive water demands of future datacentres.
Why Datacentres Need So Much Water
Datacentres rely on large volumes of water to manage the immense heat generated by densely packed servers. Cooling towers, chillers, and humidification systems consume water directly, while indirect consumption occurs through high electrical power needs. With the UK government pushing for AI growth zones and a national AI strategy, the water industry says these plans ignore a fundamental resource constraint.
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Water UK’s briefing states that the government 'makes not a single mention of water' in its policies for AI growth zones, the AI for science strategy, or the AI opportunities action plan. The Environment Agency’s latest national water framework, published in June 2025, also fails to estimate datacentre water demands.
Pressure on Water-Stressed Regions
More than three-quarters of existing UK datacentres are located in the south and east of England, areas already experiencing severe water stress. Millions of residents face hosepipe bans after prolonged extreme heat and low rainfall. Water UK warns that new datacentre growth in these regions 'may be impossible' without policy changes, as leakage and demand targets are already very ambitious.
| Region | Existing Datacentres | Water Stress Level |
|---|---|---|
| South East England | ~60% | High |
| East of England | ~15% | Very High |
| Rest of UK | ~25% | Moderate to Low |
The trade body notes that May 2025 saw a House of Lords report projecting a 5 billion litre per day shortfall in public water supply by 2055. To meet new demands, companies would either need to extract more water from the environment—potentially causing harm—or build new reservoirs, which can take 15 years to plan and construct.
Key Takeaways
- Water UK calls government water forecasts 'fatally flawed' for excluding datacentres.
- Datacentres consume vast amounts of water for cooling and indirect power generation.
- Over three-quarters of UK datacentres sit in water-stressed southern and eastern regions.
- A 5 billion litre daily shortfall is projected by 2055 for public water supplies.
- New datacentre growth may be impossible without major policy and infrastructure changes.
FAQ
Why do datacentres need so much water?
Datacentres require water for cooling towers, chillers, and humidification to manage server heat. Additional water is consumed indirectly through high electricity demands for power generation.
Which UK regions are most affected by datacentre water demand?
The south and east of England, where over 75% of UK datacentres are located, are already under high water stress. Residents there face hosepipe bans and supply shortages.
What does Water UK recommend to solve the datacentre water problem?
Water UK urges the government to include datacentre water demand in all future planning. Solutions may involve building new reservoirs or improving water efficiency, but both require significant time and investment.
The water industry’s warning underscores a growing tension between the UK’s AI ambitions and environmental realities. Without immediate policy adjustments, the dream of becoming a global AI leader may literally run dry.
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