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UK water industry says AI data center plans ignore supply limits
Water UK says government AI growth zone plans leave out data center demand as England heads toward a 5 billion litre water shortfall by 2055.
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The UK trade body for water companies says the government’s push for AI growth zones fails to account for one basic constraint: water. In a briefing to MPs, Water UK called the plans “fatally flawed” and said official projections “explicitly exclude” data centers.
According to the group, government policy “makes not a single mention of water” in the delivery of AI growth zones, the AI for science strategy, or the AI opportunities action plan. Water UK warned that policymakers appear to assume supply will always be available for economic growth.
“There appears to be an assumption that the country will always have enough water for its economic needs. Nothing could be further from the truth.”
That warning lands as pressure on public supplies is already growing. A May 2026 House of Lords report said England could face a 5 billion litre shortfall in public water supplies by 2055 if no action is taken. The same report said as much as 60% of that deficit could be addressed through demand management and leakage reduction.
It also urged that water companies become statutory consultees on all major planning decisions, including housing developments, data centres, and energy infrastructure projects, to support water resource planning.
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Data center growth and heatwave pressure
New data center projects are expanding across the UK, and operators can now apply for national importance status. That can let projects bypass local building rules and move through Whitehall faster.
The issue is especially sharp during heatwaves. While the south and east of England were placed under a hosepipe ban during the most recent heatwave, Affinity Water warned that in Slough — where 125 data center projects are planned — some proposals were requesting as much as 3m litres of water a day.
Current Environment Agency rules mean water supplied to data centers must be drinking water only. And because the UK government has designated data centers as critical infrastructure, their disruption could have a “major detrimental impact on the availability, integrity or delivery of essential services” and a “significant impact on national security, national defence, or the functioning of the state.”
That leaves water companies with limited ability to curb data center consumption, even during extreme heat, while restrictions on non-essential use can still fall on households.
Enterprise Editor
Marcus follows the money. He covers enterprise software, cloud architecture, and the tectonic shifts in Big Tech strategy. He translates dense earnings calls and complex M&A activity into actionable insights about where the industry is actually heading. If a tech giant makes a silent pivot, Marcus is usually the first to notice.
via TechRadar
