Data centre

Europe’s AI boom is causing a water crisis

Expansion of data centres in Europe threatens already limited resources
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Image: Getty via Dennis

17 October 2025

Water scarcity threatens Europe’s AI ambitions. This issue is particularly acute in Southern Europe, where 30% of the population lives in areas with permanent water stress, meaning that demand exceeds supply. Data centres, which are essential to the digital economy, require large quantities of water for cooling.

Major technology companies such as Amazon, Microsoft, and Meta have invested billions in new data centres across Europe. However, experts warn that policymakers are not taking this rapid expansion into account in regions already facing water shortages.

Prof Kevin Grecksch of the University of Oxford points to a lack of foresight around sustainability. While investments in AI promise economic growth and jobs, crucial questions remain unanswered: what happens to data centres during a drought if the public water supply becomes a priority?

 

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The European Commission emphasises energy efficiency and environmental sustainability in its selection criteria for AI factories. It cites the Jupiter supercomputer in Germany as an outstanding example of green computing, utilising renewable energy and state-of-the-art cooling techniques.

Amazon plans three data centres in Spain’s water-stressed region

Nevertheless, concerns remain. Amazon’s plan to open three data centres in Aragon, Spain, where water is already under stress, has sparked tensions between local farmers and environmental activists. Similarly, designating Culham in the United Kingdom as an AI growth area has fueled fears that pressure on local water supplies will increase.

Analysts note that companies often focus on reporting on-site water usage for cooling, while overlooking the broader off-site water footprint associated with electricity generation and semiconductor production.

Data centre operators are increasingly focusing on responsible water management, but determining their total water footprint remains a challenge. S&P Global’s analysis forecasts high exposure to water stress for the data centre industry during the 2020s, with Southern European countries such as Spain and Greece facing the most severe problems.

The European Data Centre Association (EUDCA) acknowledged that water consumption is a serious problem and highlights innovations being implemented to reduce water use and chemical treatment. The goal is to use non-potable water for industrial processes, reserving drinking water for essential purposes.

The EUDC underscored the crucial role of data centres in Europe’s digital economy, referencing trillions of dollars in GDP and millions of well-paid technology jobs. However, concerns about water scarcity persist.

European lawmakers have repeatedly warned about the continent’s growing water crisis. The European Environment Agency confirms that water resources are under severe pressure: one third of Europe’s population and territory face water stress.

The EUDC underscored the crucial role of data centres in Europe’s digital economy, referencing trillions of dollars in GDP and millions of well-paid technology jobs. However, concerns about water scarcity persist.

Ireland, a hub for data centres, has also come under fire from environmental groups, resulting in an effective ban on new data centers due to issues with network capacity and environmental impacts.

Business AM

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