Calls for efficiency standards for water use in data centres

By Jason Pollock on Dec 9, 2025 7:15PM
Calls for efficiency standards for water use in data centres

The Water Services Association of Australia (WSAA) has authored a new report on water use in data centres across Australia, setting out five key policy principles that it says should be prioritised to ensure the sustainable development of future data centres across Australia.

These include early engagement between data centre customers and water utilities; building trust through transparent reporting of water and energy use metrics; efficiency standards to embed best practices across the market; recycled water and circular economy solutions as preferred pathways; and fair, consistent and future-ready regulatory and cost-recovery frameworks.

The report stated that the current water use of data centres is low, because existing facilities are generally smaller, legacy centres or still ramping up.

"However, future generations of data centres are likely to be larger, with greater water use," the report said.

"Exactly how much, depends largely on cooling choices and water sources. Estimates vary – for example estimates for Sydney range from 1.9% of water supply (data centre sector estimate) in 2030, to around 15 - 20% of supply in 2035, Melbourne is also seeing strong interest.

"Australian water utilities are receiving many approaches from data centres, often seeking high water volumes (5 to 40 million litres a day (average day demand), 20 times the largest single customer or 70,000 - 80,000 households) in short timeframes."

WSAA executive director Adam Lovell said water efficiency standards for new data centre development would help provide "greater planning and development certainty, help reduce future costs, accelerate approvals and build trust".

“Australia is well positioned to become a global date centre hub, and that needn’t be at the expense of our water resources,” Lovell said.

“We have a history in Australia of developing innovative solutions to make sure industrial users through to residential consumers have reliable access to water supplies, but that needs to be balanced against using every drop as efficiently and effectively as possible.

“The experience from around the world shows that strong efficiency standards and regulation are the smartest ways to help data centres use water wisely. Water efficiency standards will drive best practice water solutions, help build community trust and provide longer term reductions in water use costs.”

The WSAA is the peak body for the water sector in Australia and New Zealand that represents more than 150 water utilities supplying safe water and waste water services to 24 million people.

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