Cloud providers in Europe are calling for data centers to reuse waste water and help fund public infrastructure improvements, but they’ve also urged the EU not to single them out for water use restrictions.
That comes amid concerns that data centers are too thirsty. Most use large amounts of water for cooling — in 2022, for example, Google was called a "water vampire" for soaking up a third of one Oregon city's water supply.
The rise in demand for AI data centers has led to growing concerns about potential water scarcity, with a report from SourceMaterial earlier this year noting that Amazon, Microsoft and Google were all running data centers in some of the world's driest regions.
Last month, the European Commission (EC) said water shortages are being exacerbated by leaks and pollution across the bloc, but also specifically pointed to high usage from data center operators.
Cloud Infrastructure Providers in Europe (CISPE) admitted that "water scarcity is rapidly becoming a pressing challenge," saying the organizations' members support the Commission's inclusion of water resilience in its Green Deal.
But it also called for the Commission to not target any specific industry in a post titled "don't throw the baby out with the bath water!"
Data center water use is out of control
In that post, CISPE said its cloud members play a role as "responsible water users and as innovative enablers of better water management".
The trade group insists the sector is "already among one of the most responsible water users." As evidence of this, CISPE pointed to the Climate Neutral Data Centre Pact, which includes measuring Water Usage Effectiveness to highlight data center consumption rates.
"Water resilience is a pressing issue that should be addressed by the Commission," said Velimira Bakalova, sustainability policy manager at CISPE.
"But the Commission should also recognize not only the significant work that the sector has done, but its leadership in this area and its potential to deliver and support innovative solutions that will significantly improve water management for the benefit of all."
The EC proposed minimum performance standards alongside investment in technology to find new cooling methods. The trade group also proposes to run pilots to promote water efficiency across all areas of industry.
"In particular, to promote water savings across data centers, the Commission will rate their energy efficiency and overall sustainability and propose minimum performance standards, including for water consumption," the strategy document noted.
There are technologies that limit that consumption, such as liquid cooling, but they remain niche. Via reclamation projects, AWS has said it will return more water to communities around the world by 2030 than it uses in its operations.
Similarly, Microsoft last year unveiled a new data center design that promises to use no water for cooling at all.
Recommendations for more efficient water usage
CISPE's policy paper included recommendations for how the EC could improve water use without such restrictions. That includes creating frameworks to support water reuse, such as using municipal wastewater for data-center cooling.
The organization also recommended setting up public-private partnerships to modernize water infrastructure by using private innovation and money that's overseen by the public sector.
Alongside those practical ideas, CIPSE also called for the EC to promote the use of the cloud to help manage water systems, including digital twins and digital sensors.
Notably, the trade group urged restraint with regard to regulatory action.
"Adopt a cross-sectoral, holistic approach to water policy that avoids singling out specific industries,” CISPE said. "The sector is already navigating high energy costs, uneven electricity market access, and complex regulatory demands."
"Imposing new, standalone water regulations could increase costs, create regulatory fragmentation, and deter investment. This risks shifting infrastructure outside the EU-undermining both sustainability and sovereignty goals," CISPE added.
"Such regulatory uncertainty could also reduce Europe’s attractiveness for climate-neutral infrastructure investment at a time when other regions offer clear and stable frameworks for green data growth."
However, such restrictions may not only come via EU regulations — back in 2023, utility Thames Water said it may restrict data centre water use in London during droughts.
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