Powering growth while safeguarding critical resources

Data centres have become foundational infrastructure for modern economies, underpinning cloud computing, artificial intelligence, public services and industrial systems.

As demand for compute capacity accelerates, the UK faces a dual challenge: expanding digital infrastructure to remain globally competitive while managing growing pressures on electricity grids, water resources and local communities. 

Data centres are essential infrastructure for the UK’s digital economy, powering AI, cloud computing and critical services. They are increasingly strategic assets that intersect with energy security, water resilience, industrial competitiveness and technological sovereignty.

Data centres are becoming a vital part of modern society, significantly increasing demand for energy and water. The questions is not whether data centres should be built but how they are built and how to operate them efficiently through intelligent solutions.
Bent Jensen, CEO, Grundfos Commercial Business Services division

Understanding the resource demands of digital infrastructure

Data centres are inherently resource-intensive. Cooling systems alone account for a significant share of electricity consumption and drive substantial water use. 

Cooling systems can represent ~38% of total facility energy use and require significant volumes of water. 

At the centre of this challenge is the interdependent relationship between electricity and water use — known as the water-energy nexus. 

Some cooling approaches reduce energy demand but increase water consumption, while others reduce water use but increase electricity demand.

Proven solutions for reducing energy and water intensity

  • Advanced cooling technologies, particularly liquid cooling, significantly reduce energy demand and enable higher computing densities. 
  • Hydronic optimisation and smart pumping systems can deliver 20–60% energy savings in cooling infrastructure.
  • Water circularity and non-potable water use reduce dependence on freshwater resources.
  • Excess heat reuse enables data centres to contribute to district heating and industrial energy systems.

 

These solutions are most effective when implemented holistically, optimising both energy and water performance while enabling integration with wider energy systems.

Enabling progress through policy and system alignment

Scaling these solutions requires policy frameworks that enable deployment, investment and system integration at pace.

Policy frameworks therefore play a critical role in aligning digital infrastructure growth with the UK and Europe’s climate, energy and water resilience objectives. 

By prioritising efficiency, heat and water reuse and system integration, the UK can turn resource constraints into a competitive advantage.

We take a deeper look at practical technical solutions and policy frameworks to enable the efficient, responsible and long-term sustainable development of the UK’s digital infrastructure in our latest white paper.