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By Brigitte Rodriguez, Publishing Associate: Researcher and Writer at Save the Water™ | January 24, 2026
Edited by Joshua Awolaye, Publishing Associate Editor at Save the Water™
Large data centers are expanding across Australia, and they need huge amounts of drinking water to keep their servers cool. As data center water use increases, nearby communities can’t find enough clean water. This is because data centers use a substantial volume of water to keep computers cool. Water suppliers warn that building more such facilities could make it harder to manage local systems.
Inside a data center, hundreds of computers work day and night. This creates a lot of heat. Most companies use water-based cooling systems to protect their equipment. These systems operate rapidly and rely on millions of liters of water. This water could otherwise be used for homes, hospitals, and schools.
Sometimes, there are way too many data centers in one place. This can be too much for the city's pipes and systems to handle. Data processing continues to grow, and entities use data for cloud storage, artificial intelligence, and video games, among other things.
The pressure on drinking water is high in places where regulators are approving new data centers. For example:
- In Western Melbourne, officials are studying how proposed data centers could affect water supply systems.
- Estimates show AI data-related activities could use up to 25% of Sydney's drinking water in ten years.
- The approval of 10 new facilities has raised concerns about whether companies have sufficiently robust water management plans in place.
There is concern that the excess water allocated to data centers could reduce future availability for residents. Water demand has been growing in recent years. Cities may therefore need to expand their supply systems. They will also need to find new ways to manage existing resources.
Some community impacts are:
- Reduced flexibility in water distribution
- High operational costs
- Challenges for future infrastructure planning
- Pressure to increase water reuse and recycling systems. Reusing water is becoming more important as demand increases and supplies are limited.
Researchers are exploring different paths to lower the impact on water supplies. Some data center operators are testing new alternatives to reduce water demand:
- Air-based cooling systems that use less water
- On-site water recycling for cooling loops
- Treated wastewater reuse instead of drinking water. This allows industries to operate without putting extra pressure on drinking water supplies.
As Australia continues to build more data centers, the country must balance digital growth with protecting drinking water. One solution is to develop cooling systems that use less water. Clear planning rules and strict regulations can also help ensure that water supplies remain available for everyone.
Learning about this problem helps young researchers to create new technologies to use water responsibly and keep drinking water safe.
Save the Water™ is a 501 (c)(3) non-profit organization with a mission to conduct research to identify and remove harmful contaminants in water and to raise public awareness about water contamination and its health impacts.
