Record heat across Europe has drawn attention to the impact of proposed new water efficiency standards on datacenter cooling systems. The European Union has warned that datacenters need to take urgent action to reduce water consumption, leading the Cloud Infrastructure Services Providers in Europe (CISPE) trade association to advocate for a new approach to infrastructure investment.
In early June, the European Commission published policy proposals intended to address the inconsistent management of water resources across the bloc. With drought conditions becoming more common in many areas, the EU’s Water Resilience Strategy identified the significant wastage of water through leaks and pollution. Datacenters, currently experiencing rapid growth fueled by technologies such as AI, have been singled out as significant contributors to water consumption. Minimum standards for water efficiency in datacenters are expected to be drafted by the end of 2026.
Datacenters utilize water in two primary ways: closed-loop systems recirculate cooled water to manage heat, and open-loop systems allow water to evaporate, carrying heat away. In response to the EU’s concerns, Microsoft is developing designs for datacenters that would operate without water consumption.
CISPE’s response emphasizes the potential economic risks associated with new water regulations, suggesting that such measures could lead to increased costs and regulatory fragmentation, ultimately deterring investment within the EU. This could result in a shift of datacenter infrastructure away from Europe, undermining sustainability efforts and national interests in the region. CISPE has called for harmonization of regulations, increased investment, and improved technology to foster efficient water use.
The organization also noted that countries with limited public budgets are underinvesting in water infrastructure. They advocate for formal public-private partnerships to attract private investment for the development of sustainable financing models. Moreover, efficient water management would require advanced data collection methodologies through IoT sensors paired with AI technologies, positioning cloud datacenters as part of the solution rather than merely a burden on water resources.
Determining the water usage of datacenters can be complicated, varying based on facility size, workload, and location. Yet, trends indicate that water consumption is on the rise. A recent report highlighted concerns in the UK about the long-term implications of promoting the country as an AI center, predicting increased competition for renewable energy and drinking water resources.
The datacenter industry is actively working towards establishing efficiency standards, as demonstrated by the Climate Neutral Data Centre Pact, which targets a Water Usage Effectiveness of 0.4 liters/kWh for new data centers located in regions facing water scarcity by 2025.
Experts assert that resolving the water issue will involve both addressing excessive energy demands and navigating the complexities of infrastructure development. Challenges include acquiring planning permissions and building necessary facilities. The main concern currently facing the EU is not simply water scarcity, but the energy constraints posed by modern computing infrastructures, emphasizing the urgent need for expanded water access to ensure sustainable growth and economic stability.
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