EU Moves to Limit Water Use in AI and Cloud Data Centres

As AI adoption accelerates across Europe, the European Union is taking steps to ensure its digital growth doesn’t drain vital water resources. 

Set to be unveiled next month, the EU’s new Water Resilience Strategy will introduce performance caps on water use in data centres by the end of 2026. The move aims to curb the sector’s growing environmental impact as demand for computing power and cooling continues to rise. 

Recent studies show that training and deploying generative AI models like ChatGPT can use up to 500 millilitres of water to generate just 10–50 responses. With usage surging globally, concerns over water stress are growing across Europe. 

In response, the Climate Neutral Data Centre Pact, which covers 90 percent of European providers, has already committed to reducing water consumption to 400 millilitres per kilowatt-hour by 2040. Newer data centres are also beginning to adopt innovative cooling systems that repurpose greywater and capture rainwater for reuse. 

The strategy will also include water efficiency targets for other sectors critical to Europe’s energy and digital transition, such as semiconductors, batteries, and hydrogen production

While Europe’s infrastructure remains strong, extreme weather is testing its resilience. Ongoing droughts have limited hydroelectric output, disrupted river transport, and even forced French nuclear reactors to scale down. By formalizing water-efficiency standards, the EU aims to ensure the future of AI and cloud infrastructure doesn’t come at the cost of climate readiness. Meanwhile, public awareness of data centre water use is rising. As consumers and businesses grow more conscious of the environmental impact of digital services, transparency and reporting standards are coming into focus. Water metrics may soon become as critical as carbon footprints when evaluating tech sustainability.

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