UK AI Growth Compromised by Data Centre Water Risks

A new paper from water solutions specialist Grundfos warns that without urgent reforms, the nation’s digital and growth ambitions risk being stifled by water scarcity.

The report, titled Scale and Secure: Powering Europe’s Digital Sovereignty (UK Chapter), reveals that while the UK is committed to AI, the crucial enabling factors for long-term operability – sustainable water and energy management – are not adequately addressed by current policy. This oversight threatens environmental targets and the ability to build and operate the infrastructure for the UK’s digital future.

With a national five-billion-litre-per-day water shortfall, data-centre consumption is under scrutiny. Yet, the real issue is how to make these facilities radically more efficient. Data centres do use significant amounts of water and energy, but with the right technologies they can cut both. Water is a critical aspect of resource efficiency that must be integrated with energy planning to ensure these facilities can function without risking grid strain or public water resources.

In a statement, Inge Delobelle, EVP and CEO for Grundfos’ Industry division, said: “The UK’s commitment to AI and CNI is commendable, but the sustainable operation of data centres must be baked into policy, not an afterthought. Efficiency must be the default for data centre growth. Clear and predictable policy frameworks should guide decisions and speed up investment in proven systems that reduce water and energy consumption. That way we support responsible growth that safeguards local resources.”

To ensure the UK becomes a leading AI superpower, its data centres must operate without compromising vital resources, Grundfos has called on Westminster to implement a framework that embraces the water-energy nexus. Key policy recommendations include integrated water and energy governance, embedding Water Usage Effectiveness (WUE) alongside Power Usage Effectiveness (PUE) within all planning, permitting, and reporting frameworks.

The report also calls for mandatory transparent reporting, including quarterly public disclosure of PUE, WUE, water sources and heat reuse, supported by independent verification to strengthen accountability and promote best practice across data centres.

It further recommends aligning incentives with efficiency by linking planning approvals and financial support directly to verified performance thresholds for highly efficient cooling technologies, while encouraging the use of closed-loop systems and non-potable water sources.

Another priority is investment in sustainable infrastructure, with targeted financial incentives for high-efficiency pumping systems, water reuse and heat recovery solutions, particularly to support the retrofitting of existing critical national infrastructure facilities.

Finally, the report urges the enabling of heat recovery and reclaimed water systems by actively integrating excess data centre heat into district heating networks and accelerating the development of so-called purple pipe infrastructure for reused water.

Bent Jensen, EVP and divisional CEO for Grundfos Commercial Business Services said: “Expanding data centre infrastructure is a key strategic lever for the government and for businesses. The UK challenge is not whether data centres should be built but how they are built and how to operate them efficiently. With clear standards, coordinated planning, and the political will to act, UK can continue to attract digital investment while reducing pressure on scarce resources. This is essential for UK to gain a competitive advantage.”