In a significant development for Australia’s water resources, data centres proposed for major cities are requesting daily water volumes that could meet the needs of approximately 80,000 homes. This alarming demand has prompted water utilities to advocate for stricter regulations and efficiency standards for these large facilities.
According to a report from the Water Services Association of Australia (WSAA), certain data centre developers in Sydney are seeking up to 40 million litres of water each day to cool their computer systems. This figure is over 20 times the amount consumed by the largest existing individual water customers, equivalent to about 16 Olympic-sized swimming pools daily. Similar requests have emerged from water utilities in Melbourne.
Concerns Over Efficiency and Community Trust
The proposed data centre developments, particularly in Sydney’s western suburbs, are vastly larger than current facilities, with some mega-precincts being more than ten times their size. These projects have been submitted for planning approval over the past year amid a global surge in data centre investment.
Developers are pressing for swift water commitments from utilities, sometimes with notice as short as six weeks, citing intense international competition for data centre investments. Industry insiders express concerns that this timeframe is inadequate for thorough assessments and planning.
Adam Lovell, the WSAA’s executive director, emphasized the importance of maintaining community support for infrastructure projects. He stated, “We have a history in Australia of developing innovative solutions to ensure reliable access to water supplies. But that needs to be balanced with using every drop as efficiently and effectively as possible.”
On March 15, 2024, a meeting of federal and state environment and water ministers in Brisbane is scheduled to address the growing concerns over water usage by data centres. The ministers will examine proposals for establishing minimum water efficiency standards for these developments.
Economic Opportunities and Sustainable Growth
With the demand for data centres expected to rise, the WSAA warns that these facilities could contribute between 15 percent and 20 percent to water demand in New South Wales by 2035, potentially accounting for more than 35 percent of non-residential drinking water consumption.
The report indicates that large data centres employing inefficient cooling systems could face annual water costs exceeding $40 million. Consequently, WSAA urges governments to prioritize projects demonstrating strong water and energy performance when considering planning applications.
NSW Water Minister Rose Jackson has stated that data centres will need to finance upgrades to water infrastructure to prevent households from bearing the costs. WSAA policy manager Danielle Francis highlighted the necessity for transparent reporting of water usage to build public trust in data centres.
As the demand for data centres continues to grow, the focus on sustainable practices is essential. The WSAA’s report underscores that while current water usage by data centres is relatively low, future generations of these facilities are likely to require significantly more water. Implementing effective water efficiency systems can help mitigate these impacts.
With major players like OpenAI announcing significant investment in the region, the stakes are high for balancing economic opportunity with environmental responsibility. The WSAA aims to collaborate with governments and data centre operators to establish standards that will ensure sustainable water solutions for decades to come.
