How water resilience will shape the future of data centres
26 November 2025
As the digital economy expands, data centres are facing unprecedented challenges from water scarcity and rising sustainability demands. This Q&A introduces key findings from Baringa’s latest report, “How water resilience will shape the future of data centres,” authored by leading experts in water, energy, and digital infrastructure.
Explore how strategic water management, innovative cooling technologies, and new commercial models are reshaping the future of data centres - and discover actionable insights to help operators, investors, and policymakers build resilience in a rapidly evolving landscape.
Why is water resilience critical for the future of data centres?
James Piggott: As global digital growth accelerates, data centres face mounting challenges from water scarcity. By 2030, water consumption is set to double, making water a strategic asset for operators. The report explores how industry leaders are managing the water–energy trade-off, embedding water risk into site selection, and adopting innovative solutions such as Water Purchase Agreements (WPAs) for long-term resilience.
What to learn from this report?
- Water is a constraint on digital growth. Over half of data centres are already in water-stressed regions, by 2030, water demand will double.
- Cooling is the critical trade-off. Saving water can increase energy use by up to 40%, making integrated water-energy planning essential.
- Reuse and non-potable sources are the future. Investment and access agreements are needed for treated and recycled water to secure supply and reduce community pressure.
- New commercial models are needed. Long-term frameworks such as Water Purchase Agreements could provide investment certainty, while enabling co-funded infrastructure for alternative supply, and strengthen basin-level resilience for all users.
Expert contributors: Greg Borel, Partner, expert in Data Centres, Nick Forrest, Partner, expert in Regulation and Policy, Simon Connell, expert in Nature Finance, and Marcel Volkerts, expert in Energy Networks.
Download the full report now to unlock actionable insights and future-proof your data centre strategy.
Our Experts
Related Insights
Technical Advisory - Supporting clients in assessment of the technical and commercial aspects of a new project, business, or strategy
Read to learn about key trends in the technical advisory space including the rise of developers scaling their portfolios; a move towards renewable energy transactions; and a recent trend back towards natural gas. How can we help support you?
Read more
Smart Water Metering: lessons learned to help us tackle water scarcity
This report includes recommendations for greater levels of central coordination, common standards and investments in customer engagement and data sharing. It also provides water companies with a wealth of lessons learned to help them successfully deploy meters and use the data to drive water efficiency benefits.
Read more
Navigating financial vulnerability across the UK
We explore the underlying causes of financial vulnerability and examine the outlook for winter 2025.
Read more
Digital transformation and decarbonisation in the energy sector
Energy leaders are using digital technologies and data to fast-track their journeys to decarbonisation.
Read moreRelated Client Stories
Collaborating globally to future proof Australia’s water resources
How do you effectively manage the ever-evolving supply and demand challenges of water resources?
Read more
Rescuing leakage performance for a water company
How do you recover leakage performance after two extreme weather events?
Read more
Navigating the shifting bioresources landscape
Helping a major UK water and sewerage company navigate the shifting bioresources landscape.
Read more
Reducing OPEX by 30% and building new capability for the future at a UK B2B water retailer
How do you move a business to profitability and drive continuous improvement…at the same time?
Read moreIs digital and AI delivering what your business needs?
Digital and AI can solve your toughest challenges and elevate your business performance. But success isn’t always straightforward. Where can you unlock opportunity? And what does it take to set the foundation for lasting success?