UK Datacentres and Water Shortage: A Looming Crisis? (2026)

The UK's water industry is facing a critical challenge as it grapples with the growing demand for water to support the expansion of datacentres, a key component of the government's AI growth plans. This issue is not just about the amount of water needed; it's about the sustainability and management of this precious resource in a country already facing water scarcity. The situation is further complicated by the government's lack of acknowledgment and planning for the water demands of these datacentres, which could have far-reaching implications for the environment and public water supplies.

The Water-Intensive Nature of Datacentres

Datacentres are powerhouses of data processing, but they are also powerhouses of water consumption. These facilities require vast amounts of water to manage the heat generated by their dense servers. Cooling towers, chillers, and humidification systems directly use this water, while high electrical power needs indirectly consume large volumes. The situation is particularly dire in the UK, where more than three-quarters of datacentres are located in water-stressed areas, primarily in the south and east of England. This concentration in already water-challenged regions exacerbates the strain on local water supplies.

Government's Flawed Forecasts and Neglect

Water UK, the trade body representing water companies, has raised alarm bells about the government's water forecasts, which they claim are 'fatally flawed' and 'explicitly exclude' datacentres. The government's policies, such as the AI growth zones, AI for science strategy, and AI opportunities action plan, make no mention of water considerations. This oversight is particularly concerning given the Environment Agency's recent framework, which also failed to estimate the water demands of datacentres. The assumption that the country will always have enough water for its economic needs is, as Water UK notes, 'nothing could be further from the truth'.

Water Shortages and Datacentre Growth

The UK is already facing a significant water shortfall, with a projected 5 billion-litre daily deficit by 2055, according to a House of Lords report. This shortage is further exacerbated by the growing number of datacentres, which are being built in water-stressed areas. The situation is critical in Slough, where about 125 datacentres are proposed or under construction, with some requesting up to 3 million litres of water a day. This demand is equivalent to the peak water demand of 3,500 homes, highlighting the immense strain on local water resources.

The Trade-Off and Environmental Risks

The trade-off between economic growth and environmental sustainability is stark. Water companies are already under pressure to reduce leakage and meet ambitious demand targets. Building new supplies or increasing water extraction from the environment could harm the environment, and major reservoirs take a decade or more to plan and construct. The situation is made more complex by the government's designation of datacentres as critical national infrastructure, which may prioritize their water use over households during peak demand. This could lead to datacentres being protected and given favourable treatment, potentially exacerbating the water crisis.

The Way Forward

Water UK has called for a drought hierarchy to prioritize sectors in times of water shortages, but the government has yet to publish one. The campaign to encourage water conservation, worth £75 million, is a step in the right direction, but it may not be enough to address the growing water demands of datacentres. The government's delay in publishing a national policy statement for AI growth further complicates matters, as it fails to provide a clear strategy for managing the cumulative impacts of datacentres on water resources. The challenge is to balance economic growth with environmental sustainability, and the UK's water industry is at the forefront of this critical debate.

UK Datacentres and Water Shortage: A Looming Crisis? (2026)
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