Data Centers and Their Water Consumption Impact by 2030

UN university warns data centres could use 9.3 trillion litres of water by 2030

A new report from the United Nations University Institute for Water, Environment and Health says data centres may more than double their water consumption by the end of the decade. The research projects annual water use rising from 4.5 trillion litres in the latest reporting period to 9.3 trillion litres by 2030. The increase is driven primarily by artificial intelligence infrastructure, which requires substantial volumes of water for cooling systems.

The findings shift attention beyond electricity demand. Water use, land requirements, carbon emissions, and electronic waste now form a broader picture of AI’s environmental cost. For UK businesses tracking sustainability commitments or responding to supply chain pressures, these projections matter. Data centre expansion affects regional water availability, carbon accounting, and the infrastructure that underpins cloud services, software platforms, and digital operations.

Electricity demand set to more than double alongside water use

The report says data centres consumed 448 terawatt-hours of electricity in the latest reporting year. That figure is expected to reach 945 terawatt-hours by 2030. Meanwhile, AI’s share of that electricity use is forecast to climb from roughly 20 per cent to 40 per cent over the same period.

Water consumption follows a similar trajectory. Cooling systems in data centres rely on evaporative cooling, which uses large volumes of water to dissipate heat generated by servers. As AI workloads grow, so does the energy required to process them. Consequently, cooling demand increases in parallel.

Carbon emissions are also projected to rise sharply. The report estimates that data centres generated 189 million tons of CO2 in the latest reporting year. By 2030, that figure could reach 399 million tons. These emissions stem from the electricity used to power and cool facilities, much of which still comes from fossil fuel sources in many regions.

Land use is another factor. Data centres occupied 2,664 square miles in the latest reporting period. The report projects that footprint will exceed 9,000 square miles by 2030. This expansion places additional pressure on land planning, infrastructure development, and local resource availability.

Water stress emerges as a central concern for data centre expansion

Water use has received less attention than electricity consumption in discussions about AI infrastructure. However, the report highlights water stress as a significant risk, particularly in regions where data centres are being built near drought-prone areas or competing with municipal and agricultural water systems.

Evaporative cooling requires large volumes of water to function effectively. In areas with limited water resources, this creates tension between industrial demand and community needs. The report suggests that water-intensive cooling can compete directly with local populations and farms, especially during dry periods.

For businesses, this has implications beyond environmental reporting. Supply chain resilience depends on the availability and reliability of digital infrastructure. If data centres face operational constraints due to water shortages, service disruptions may follow. Companies relying on cloud computing, software-as-a-service platforms, or data-intensive operations should consider the geographic risks associated with their providers.

The report also implies that emissions accounting alone no longer captures the full environmental cost of AI. Policymakers may need to evaluate water consumption, land use, and electronic waste alongside carbon when assessing sustainability performance. This broader view could influence future regulations, reporting requirements, and public procurement criteria.

Electronic waste and land pressure add to environmental footprint

The report warns that rapid AI rollout could strain scarce land resources and generate substantial electronic waste. Data centres require physical space for buildings, cooling infrastructure, and power supply systems. As facilities expand, they consume land that might otherwise be used for housing, agriculture, or conservation.

Electronic waste is another growing concern. Data centre equipment has a limited operational lifespan. Servers, storage devices, and networking hardware must be replaced regularly to maintain performance and security standards. As AI infrastructure scales up, the volume of discarded equipment will rise accordingly.

The report used primary data from a range of sources to estimate AI’s electricity, water, and land footprint. This approach provides a more comprehensive view than focusing solely on energy consumption. For UK businesses, these findings suggest that sustainability strategies should address multiple resource impacts rather than concentrating exclusively on carbon reduction.

What the projections mean for UK businesses and supply chains

Data centres underpin much of the digital economy. Cloud storage, software platforms, online services, and data processing all depend on this infrastructure. As AI adoption accelerates, demand for data centre capacity will continue to grow. This creates both opportunities and risks for businesses.

Companies with sustainability commitments may face scrutiny over their digital infrastructure choices. Investors, customers, and regulators increasingly expect businesses to account for indirect environmental impacts, including those embedded in supply chains and service providers. If data centres contribute significantly to water use, carbon emissions, and resource consumption, businesses using those facilities may need to reflect that impact in their own reporting.

Public sector suppliers should pay particular attention. Government procurement frameworks increasingly include environmental criteria. The Procurement Policy Note 06/21 requires suppliers bidding for central government contracts above £5 million to publish carbon reduction plans. As understanding of AI’s environmental footprint expands, procurement standards may evolve to include water use, land impact, and electronic waste alongside carbon metrics.

Businesses should also consider geographic factors. Data centres located in water-stressed regions may face operational constraints or regulatory restrictions. Service providers may need to invest in alternative cooling technologies, relocate facilities, or absorb higher operating costs. These changes could affect pricing, service availability, and contract terms.

Furthermore, reputational considerations matter. Companies promoting sustainability credentials while relying on resource-intensive digital infrastructure may face questions about consistency. Transparency about data centre impacts and efforts to mitigate them can help businesses demonstrate genuine commitment rather than superficial compliance.

Core facts from the UN university report

• Data centres consumed 448 terawatt-hours of electricity and 4.5 trillion litres of water in the latest reporting year.
• By 2030, electricity use is projected to reach 945 terawatt-hours, while water consumption could hit 9.3 trillion litres.
• AI’s share of data centre electricity demand is expected to climb from approximately 20 per cent to 40 per cent by 2030.
• Carbon emissions from data centres are forecast to increase from 189 million tons to 399 million tons over the same period.
• Land occupied by data centres is projected to grow from 2,664 square miles to more than 9,000 square miles by 2030.
• The report attributes these increases to the expansion of AI infrastructure and the electricity required to run and cool data centres.
• The United Nations University Institute for Water, Environment and Health produced the research.

Regulatory and policy responses may follow resource pressure

The report’s findings suggest that governments may face growing pressure to regulate data centre operations more closely. Current frameworks focus primarily on energy efficiency and carbon emissions. However, water use, land planning, and electronic waste could become additional regulatory priorities.

Tighter rules on data centre siting may emerge, particularly in regions facing water scarcity or competing land demands. Authorities might restrict new facilities in drought-prone areas or require operators to demonstrate sustainable water management practices. Similarly, planning policies could prioritize brownfield development over greenfield sites to limit land consumption.

Reporting requirements may also expand. If policymakers adopt a broader view of environmental impact, businesses may need to disclose water consumption, land use, and electronic waste generation alongside carbon emissions. This would align with the growing emphasis on comprehensive sustainability reporting under frameworks such as the Task Force on Climate-related Financial Disclosures and emerging UK legislation on environmental standards.

Utilities and local water systems may need to plan for higher demand in regions attracting AI infrastructure. Investment in water supply, treatment capacity, and alternative cooling technologies could become necessary to support data centre growth without compromising community needs. These costs may ultimately be reflected in pricing or passed on to businesses through service contracts.

For UK businesses, staying informed about policy developments is important. Regulatory changes affecting data centres could influence service availability, costs, and contractual obligations. Companies with significant digital operations should monitor proposals from the Department for Energy Security and Net Zero, the Environment Agency, and local planning authorities.

Practical considerations for businesses using digital infrastructure

Businesses should begin by understanding where their digital infrastructure is hosted. Cloud service providers typically operate multiple data centres across different regions. Knowing the geographic distribution of your data storage and processing can help assess exposure to water stress, energy costs, and regulatory risks.

Asking providers about their environmental performance is a reasonable step. Many data centre operators now publish sustainability reports detailing energy efficiency, renewable energy use, and water management practices. However, transparency varies. Companies should seek specific information about resource consumption, cooling technologies, and plans to reduce environmental impact.

Businesses preparing carbon reduction plans should consider whether to include digital infrastructure in their calculations. While cloud services shift environmental impact to third parties, those impacts still exist. Including Scope 3 emissions from digital operations provides a more accurate picture of total environmental footprint and demonstrates comprehensive accountability.

Alternative cooling technologies may become more relevant as water constraints tighten. Air cooling, liquid cooling, and advanced heat rejection systems can reduce water consumption, although they often require higher capital investment. Businesses negotiating long-term contracts with data centre providers might ask about cooling strategies and future plans to address resource efficiency.

Finally, businesses should watch for changes in public procurement standards. If government contracts begin requiring disclosure of water use or electronic waste alongside carbon metrics, early preparation will provide a competitive advantage. Our net-zero program for carbon reporting compliance helps businesses meet evolving regulatory requirements and respond to tender criteria.

Where to find authoritative information on data centre sustainability

The United Nations University Institute for Water, Environment and Health published the original report. Their research provides detailed projections and methodology for estimating AI infrastructure impacts. Visit the Department for Energy Security and Net Zero for UK government policy on energy use, carbon emissions, and infrastructure planning.

The Environment Agency regulates water abstraction and environmental permitting in England. Their guidance covers water use by industrial facilities, including data centres. Businesses concerned about water consumption in their supply chains can review the agency’s resources on sustainable water management.

For information on electronic waste regulations, consult the waste electrical and electronic equipment regulations on the government website. These rules govern the disposal and recycling of electronic equipment, including data centre hardware.

Businesses interested in training on sustainability reporting and carbon accounting can explore SBS Academy training on Scope 3 emissions and broader environmental disclosure requirements. Understanding how to measure and report indirect impacts, including those from digital infrastructure, is increasingly important for compliance and procurement readiness.