Executive Summary
- Data centre water consumption is frequently underreported; an analysis in December last year uncovered a new hyperscale campus in Northumberland that understated its water use. The report found that its usage was 50 times higher than predicted by the operator.
- While we tighten up energy usage efficiency regulations, water reporting is lagging; under-reporting runs the risk of several consequences, including social license.
- It could become a bottleneck if data centres end up becoming the villain in the quest for water in the eyes of the general public, despite how valuable the critical infrastructure is to a world reliant on digital technology.
In an analysis released in December 2025, it was found that the new hyperscale campus in Camvois in Northumberland has understated its water use, with it being 50 times higher than the predictions revealed.
The first phase of construction was given the go-ahead; the research that was published in Q4 has called into question the “water-free” cooling system of the US operator QTS, which has promoted as “proof” of its sustainability.
Data scientist Alex de Vries-Gao, in his report, demonstrates the underestimated scale of indirect or embedded water consumption caused by data centre operations. And if we’re not careful, this could be a serious bottleneck.
Water matters more than operators want to admit
Cooling is water-hungry and that’s even when it looks efficient; adiabatic cooling and evaporative cooling can be incredibly energy efficient on the surface, but often they’re the technologies that consume vast amounts of water invisibly.
Operators naming their data centre water usage as “seasonal” and “minimal” is doing more harm than good, as it’s hiding the peak stress during heatwaves, one of the worst weather conditions for data centres, which puts huge strain on the grid.
A lot of the times the paradox is that the greener the cooling looks on energy metrics, the worse it can be for water usage, and there are currently not many solutions out there that are a win-win.
Water is still under-reported compared to energy
Transparency in energy usage, although still not entirely accurate, is improving at a rate faster than water usage reporting. Part of that is because it’s difficult to accurately predict water use.
PUE (Power Usage Effectiveness) is a standard, but WUE (Water Usage Effectiveness) is still inconsistently measured, disclosed and regulated. There is currently a credibility gap with regulators and communities clearly seeing it.
Consequences of under-reporting water
Regulations will get tighter to help the industry become more transparent and realistic with water usage. In the meantime, we may experience project delays or even cancellations, which could stall industry growth.
Furthermore, frequent underreporting of water usage would cause reputational damage to the companies, potentially impacting future projects.
And finally, social licence to operate will become more fragile than it is right now. Currently, communities are seeing the environmental impact of data centres, especially hyperscalers, and for some, there are negative feelings towards the critical infrastructure. Data centres aren’t just competing with other industries for water; they’re competing with people, agriculture and full-on ecosystems. Therefore, if public opinion of water use is that it’s:
- understated
- poorly regulated
- poorly disclosed
- or prioritised over public needs
Then data centres are at risk of becoming symbolic villains, regardless of the incredible digital value they bring to a world that is reliant on them. Whilst power and land are potential risks now, once social license is lost, planning permission becomes the real bottleneck.
Typically, though, water regulation lags energy regulation before catching up. As regulations tighten around energy and efficiency this year, it won’t be long before mandatory WUE reporting is in place, with potential location-based water caps, seasonal operating limits, or perhaps higher water pricing.
