Record hot weather across Europe has intensified scrutiny on how new water efficiency standards could impact data center cooling systems. In early June, the European Commission issued a set of policy proposals aimed at improving water management throughout the bloc, highlighting how drought has become a recurring issue in various regions.
The EU’s Water Resilience Strategy has raised alarms about excessive water loss due to leaks and pollution, specifically singling out data centers as significant water consumers amidst their rapid growth driven by technologies like AI. The EU is working on drafting minimum standards for data center water efficiency that are expected to be published by the end of 2026.
Data centers utilize water in two primary ways: through a closed-loop system to carry heat away from computing components or through an open-loop system where water evaporates to extract heat. In response to these concerns, companies like Microsoft are developing designs for zero-water-consumption data centers to enhance their cloud services.
The Cloud Infrastructure Services Providers in Europe (CISPE) expressed concern about possible regulatory uncertainty, arguing that imposing standalone water regulations could escalate costs and deter investments, potentially pushing infrastructure outside the EU and jeopardizing sustainability and sovereignty goals. CISPE’s recommendations emphasize the need for regulatory harmonization, increased investment, and technological innovation to foster efficient water usage in the data center sector.
Presently, regulations addressing water reuse primarily target agricultural sectors, and CISPE suggests that a refreshed regulatory agenda could promote better water management in industrial applications. The organization also points out that the funding gap for water infrastructure is significant in many countries, advocating for the creation of public-private partnerships to encourage investment and innovation.
For enhanced water management, real-time data collection through IoT networks, complemented by AI analytics, could offer solutions. CISPE argues that a cloud-based approach may actually facilitate better water management by automating processes and improving decision-making.
Determining the exact water usage of data centers is complex, fluctuating based on facility size, workload, and location. Reports highlight that water consumption in data centers has been rising, posing threats to renewable energy and drinking water supplies. The UK’s Royal Academy of Engineering has illuminated the potential strain on water resources due to the country’s ambition to be a leader in AI.
To address efficiency, the data center sector is striving for its own standards, with initiatives like the Climate Neutral Data Centre Pact aiming for a Water Usage Effectiveness (WUE) target of 0.4 liters/kWh for new centers in water-stressed regions by 2025.
Experts highlight that the larger issue often revolves around infrastructure challenges rather than scarcity of water itself. There is an urgent need for European countries to enhance reservoir capacity and water accessibility as the demand for local computing resources intensifies, potentially impacting economic growth in the coming years.
