Water Shortage Threatens UK Datacentre Expansion, Trade Body Warns

27 July 2026 6 min readSource: theguardian.com
Not enough water for UK’s datacentre plans, trade body says | Water | The Guardian

Executive summary

The UK's ambition for AI growth is "fatally flawed" because government policy on datacentres fails to account for their substantial water consumption, according to Water UK. The trade body highlights that datacentres are being built in water-stressed regions, potentially exacerbating existing water supply challenges.

Reporting based on theguardian.com

Why it matters

This issue is critical for UK AI and energy infrastructure as datacentres are fundamental to AI development, yet their cooling demands pose a significant, unaddressed challenge to the country's water resources. This oversight could impede AI sector growth and exacerbate water scarcity for other essential services.

Sector impact

Analysis by AI Energy Intelligence UK

UK electricity demand

Datacentres rely on high electrical power, and large volumes of water are consumed indirectly through these energy requirements. The article does not specify direct impacts on electricity demand from water scarcity, but implies a linkage between power needs and water usage for cooling.

UK energy security
Not directly addressed by the source.
Businesses

Datacentre growth may be constrained in water-stressed areas without policy changes, potentially limiting capacity expansion for businesses relying on these facilities. Water companies may also face increased pressure to provide supply for new datacentres over existing demand, while being unable to restrict their water use due to their 'critical national infrastructure' status.

Consumers

Consumers in water-stressed areas may face continued or more frequent hosepipe bans, or other water use restrictions, if datacentres are prioritised during water shortages. There is a risk that datacentres, enabling "wasteful, pointless things," could receive favourable treatment for resources over households. A lack of a drought hierarchy means potential societal trade-offs.

Key statistics

5bn litre a day
England's projected public water supply shortfall by 2055
6.6m litres
Current daily drinking water use by datacentres in England
19.8m litres
Projected daily drinking water use by datacentres in England with tripled capacity
3m litres
Water requested daily by some datacentres in Affinity Water's region
40%
Water leakage reduction by water companies since privatisation
17%
Planned water leakage reduction by water companies by 2030
220m litres a day
Current total water shortfall in England (more than assumed in forecasts)

Figures as reported by theguardian.com. See original source for context.

Quotations

"makes not a single mention of water"

Water UK

"There appears to be an assumption that the country will always have enough water for its economic needs. Nothing could be further from the truth."

Water UK

"As leakage and demand targets are already very ambitious, the only solution to deliver new supply is to increase the amount of water taken from the environment – which may be harmful – or to build new supplies, and major reservoirs can take 15 years to plan and build"

Water UK

"The planning framework is built around household growth and per-capita consumption, and has not adapted to commercial users whose water needs can match those of a market town"

Affinity

"unforgivable"

Jon Chappel, Water UK’s deputy director

"a genuine failing of government"

Jon Chappel, Water UK’s deputy director

"major detrimental impact on the availability, integrity or delivery of essential services"

Government (regarding critical national infrastructure status)

"significant impact on national security, national defence, or the functioning of the state"

Government (regarding critical national infrastructure status)

"I think it is highly likely that we’re going to end up seeing datacentres that are actually running chatbots, or enabling people to do benign and very wasteful, pointless things, protected and given favourable treatment when it comes to resources"

Oliver Hayes, Global Action Plan

"Without this there will be a trade-off across society"

Jon Chappel

"The environment and sustainable development must go hand-in-hand and we will protect our water supply while unlocking growth, including looking at alternatives or ways to minimise impact on supplies and output of wastewater from datacentres."

A government spokesperson

"We are also taking decisive measures to secure water supplies and meet higher demand, including record levels of infrastructure investment and building nine new reservoirs."

A government spokesperson

Long-term implications

The government's failure to incorporate datacentre water demand into national planning could lead to a significant long-term water deficit. Building new reservoirs can take up to 15 years, suggesting that immediate policy changes for water management regarding datacentres are crucial to sustain future AI infrastructure development and prevent environmental harm.

Frequently asked questions

Why are datacentres relevant to water supply in the UK?

Datacentres use substantial amounts of water for cooling their densely packed servers, both directly through cooling systems and indirectly due to high electrical power needs. This demand is not adequately factored into government water forecasts.

What is meant by the government's AI growth plans being "fatally flawed"?

Water UK states that the government's AI policy documents, including those for AI growth zones and strategy, make no mention of water requirements for datacentres. This omission means plans are not grounded in the reality of water availability.

Where are most datacentres located in the UK and why is this problematic?

More than three-quarters of datacentres are in the south and east of England, which are already water-stressed areas. This concentration, combined with high water demand for datacentres, exacerbates existing pressure on water networks and can lead to restrictions like hosepipe bans for residents.

What are the potential consequences of datacentres being designated as critical national infrastructure?

This designation means their loss could severely impact essential services. A potential implication is that water companies may be unable to restrict their water usage, risking datacentres being prioritised over household supplies during shortages.

What solutions are proposed for addressing the water issue?

Water UK has requested the government publish a drought hierarchy to outline sector prioritisation during water shortages. The government has stated it is looking into alternatives or ways to minimise datacentres' impact on water supplies, and is investing in infrastructure and new reservoirs.

Original source

This story summarises reporting from theguardian.com. Read the original for full context.

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