Setting the Record Straight on Water Use in AI Data Centres

The AI Boom and its Infrastructure Backbone 

Artificial Intelligence (AI) is transforming industries at an unprecedented pace, from accelerating creative breakthroughs to redefining how we approach complex problem-solving.  

Behind this surge lies a critical enabler: data centres. These facilities are the beating heart of AI, housing the high-performance computing systems that train and run generative AI models. Unlike traditional data centres, those designed for AI platforms must handle enormous computational intensity, which translates into higher energy consumption and heat generation. To keep these systems running efficiently, cooling becomes a top priority.

Why Water Matters in Cooling 

Cooling is essential to prevent overheating and maintain optimal performance in data centres. In the past, air-based cooling has been the standard approach, which can use  water evaporative cooling to chill the air before it enters the data hall. However, modern AI-ready facilities are shifting toward liquid cooling, where cooled water or specialised coolant is circulated directly to racks and critical components for efficient heat transfer. 
 
This shift has sparked debate. Headlines warn that AI data centres could become “water guzzlers,” straining local resources and contributing to waste. But is this perception accurate?

The Media Narrative: A Negative Spotlight 

Recent media coverage has painted a picture of AI data centres as unsustainable, suggesting they consume vast amounts of water without regard for environmental impact. This narrative resonates because water scarcity is a global issue and any technology perceived as wasteful faces scrutiny. 

Yet, the reality is more nuanced. While older data centre designs may have had inefficiencies, modern facilities are evolving rapidly to address these concerns. 

 

The Truth: Innovation Is Changing the Game 

Newly designed AI data centres are far from wasteful. In fact, sustainability is now a core design principle.  

Among these innovations is the adoption of closed-loop cooling systems. Unlike traditional evaporative cooling, these systems circulate coolant in a sealed loop, transferring heat without losing water to evaporation. This approach almost eliminates water discharge, ensuring near-zero wastewater during the cooling process. In addition, some facilities are achieving near-zero water waste by using reclaimed water sources or integrating with district cooling systems to reduce environmental impact. For example, Amazon Web Services is expanding the use of recycled wastewater across 120 U.S. data centres as part of its goal to become “water positive” by 2030.  
 
These innovations demonstrate that the industry is not ignoring the problem, but taking sufficient steps to solving it. 
 
Our Commitment: Zero Waste Water Cooling 

At Colt DCS, we’ve taken this challenge head-on. Our new AI-Ready data centres follow our Global Reference Design, creating standardised, repeatable, yet flexible facilities across the UK, Europe and APAC. Each is designed to incorporate closed-loop cooling systems.  By combining cutting-edge engineering with sustainable practices, we’re setting a new company benchmark for AI infrastructure. 

Beyond water efficiency, our new AI-Ready data centres are designed to: 

• Operate using 100% renewable energy. 
• Recover waste heat and supply it to local communities 
• Achieve a lower Water Usage Effectiveness, setting the standard for sustainable operations. 

This model demonstrates how cooling innovation can reduce water consumption dramatically, proving that AI infrastructure can scale responsibly without draining local resources. 

 
The Bottom Line 

Will new AI data centres waste water? No, quite the opposite. The industry is innovating to ensure that the infrastructure powering AI is as sustainable as the solutions it enables. Through smarter design and responsible practices, we can meet the growing demand for AI while safeguarding our most precious resource.