Enhancing water resilience in the data centre industry

Executive summary 

Water is an essential natural resource for life and environmental balance, as well as for economic development. Water scarcity and sustainable waste use pose significant challenges and opportunities, necessitating management practices that facilitate both the digital and green transitions. 

Data centres utilise water for efficient cooling. The digital solutions they enable are essential for Europe’s digital transformation and are also critical for optimising water management and conservation across all sectors. For this reason, we need a coordinated approach to address both opportunities and challenges in water management. In light of the publication of the European Water Resilience Strategy, we put forward several policy recommendations: 

• Apply the simplification omnibus principle to water policy measure: Align any new water-related measures with existing frameworks (e.g. EU Water Framework Directive, Energy Efficiency Directive, Corporate Sustainability Reporting Directive) and industry-led initiatives (e.g. Climate Neutral Data Centre Pact) to avoid overlapping obligations and promote efficiency. 

• Apply a holistic approach to data centre sustainability and consider the risks associated with the development of minimum performance standards (MPS): Consider the varying factors influencing data centre performance metrics and assess overall data centre sustainability. 

• Harness the potential of data centres for water restoration projects: Support policies that promote the needed EU infrastructure allowing data centres to use recycled, reclaimed and other non-potable water sources, crucial for long-term environmental balance. 

• Support water recycling and reuse programmes through incentives and public-private partnerships: Promote local water restoration efforts and public-private partnerships to improve water infrastructure, benefiting both local communities and digital infrastructure.  

• Consider technology advancement for sustainable water management: Integrate AI, smart metering and digital technologies for optimised water management, enhancing monitoring and predictive capabilities, whilst keeping a technology-neutral approach related to cooling systems.