Why Do Data Centres Need To Improve How They Manage Water Use?

A report by the Water Research Centre has called for a new framework to better manage water use in data centres. 

The study points to a growing issue: as digital infrastructure expands, so does its reliance on water, yet measurement and accountability remain inconsistent.

For UK businesses, this isn’t just a niche concern. It signals a wider shift in how water usage is being scrutinised, priced, and managed across the non-household market.

What’s the issue with data centre water use?

Data centres are essential to modern business operations, powering everything from cloud storage to AI systems. But behind the scenes, they consume significant volumes of water, primarily for cooling.

Cooling systems often rely on evaporative processes, where water is used to dissipate heat from servers. While effective, this can result in high consumption, particularly during periods of peak demand or warmer weather.

The challenge, as highlighted in the MOSL-backed study, is that there is currently no consistent way to measure or report this water use across the sector. 

Without standardisation, it becomes difficult to benchmark efficiency, identify waste, or implement meaningful reductions.

Why is water management more crucial for every business?

It would be easy to dismiss this as a sector-specific issue, but that would be a mistake. Data centres are simply the most visible example of a broader trend: water is becoming a more strategic resource for UK businesses. 

Increasing regulatory attention, environmental pressures, and rising costs are forcing organisations to rethink how they use and manage water. In other words, what’s happening in data centres today is likely to influence expectations across multiple industries tomorrow.

What new accountabilities will businesses have for water usage?  

The call for a new reporting framework reflects a growing push for transparency in water usage. Businesses are increasingly expected to:

• Track consumption accurately
• Identify inefficiencies
• Demonstrate reductions over time
• Align with sustainability targets

For many organisations, this represents a significant change. Historically, water has been seen as a low-cost utility, often overlooked compared to energy or fuel. However, that mindset is changing.

What are the implications of greater scrutiny for B2B water customers?

If you’re responsible for utilities procurement or facilities management, this shift has direct implications.

1. Water data will become more important

As reporting frameworks evolve, businesses will need access to clear, accurate water usage data. This includes:

• Site-level consumption
• Trend analysis over time
• Benchmarking against similar organisations

Without this visibility, it becomes difficult to respond to regulatory changes or sustainability demands.

2. Efficiency will become a competitive advantage

Reducing water usage isn’t just about compliance; it’s about cost control and brand positioning.

Businesses that can demonstrate efficient water management will be better placed to:

• Reduce operating costs
• Strengthen ESG credentials
• Meet client and stakeholder expectations

3. Supplier choice will matter more

Not all water retailers offer the same level of service, insight, or support. As water management becomes more complex, the choice of supplier becomes increasingly strategic.

How can changing water suppliers help your business? 

For UK businesses, the deregulated water market means you’re no longer tied to a single supplier. But with choice comes complexity.

A platform that enables businesses to compare water suppliers help you to: 

• Compare tariffs and contract terms
• Identify suppliers offering better data and reporting tools
• Find support for water efficiency initiatives
• Switch providers with minimal disruption

In a landscape where water usage is under greater scrutiny, these benefits become far more valuable.

What action can businesses take to improve their water management? 

The MOSL study highlights a key issue: you can’t manage what you don’t measure.

For businesses, now is the time to:

• Review your current water usage
• Assess whether you have access to meaningful data
• Explore whether your current supplier is helping or hindering your efficiency goals

Waiting for regulation to force change is rarely the best strategy. Proactive businesses will move early, gaining both financial and reputational advantages.

Water is no longer just a background utility. It’s becoming a key part of how businesses operate, report, and compete. The focus on data centres may be grabbing headlines, but the underlying message applies to every organisation: water usage is moving up the agenda.

Businesses that treat water usage strategically through tracking it, managing it, and optimising it, will be better positioned for what comes next.