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ThirstforChange:

Safeguardingwatersecurityforsustainabledatacentergrowth

Inpartnershipwith

Introduction

Theglobaldatacentersectorisonasteepgrowthtrajectory.Already,itisprojectedtobewortharound$527billion1,

withforecastssuggestingthemarketcouldalmostdouble

by2030.Thisexpansionisbeingfueledbyapowerfulset

ofdrivers:theriseofAIandmachinelearning,therapid

growthofcloudcomputing,ongoingdigitaltransformation,theproliferationoftheInternetofThings(IoT),theadoptionof5Gnetworks,andanincreasingemphasisondata

sovereignty,security,regulation,andsustainable,energy-efficienttechnologies.

Inrecognitionoftheirincreasinglyvitalroleinsustaining

digitallife,supportingeconomicgrowthandpowering

essentialservicessuchashealthcare,financialsystems,

andcommunications,somegovernmentsnowclassifydatacentersascriticalinfrastructure2.However,unliketraditionalinfrastructure,muchofthesectorremainsprivatelyowned.Evenwhereinfrastructureisprivatized,ittendstostillbe

subjecttosignificantregulatoryoversight.Thisdynamic

placesaparticularimportanceonpublicandprivatesectorcollaborationtoensurethatdevelopmentandregulation

cankeeppacewithinnovationwhilealsosafeguardingreliability,resilience,andsocietalneeds.

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Oneareawherethenecessityofcollaborationisespecially

pronouncedissustainability,giventhepressurethisrapid

datacenterexpansionisplacingonournaturalresources,

andtheenergyandlandrequired.Amongthemostpressingsustainabilityissuesfordatacentersiswaterefficiency.As

wewillsee,datacentersareincrediblythirsty,andtheir

rapidexpansioniscomingatatimewhenwaterscarcityisofsignificantglobalconcern.

Thispaperexploresglobaldatacentercapacityand

ambitions,comparingthesetowatersecuritylevels

andthesustainabilitypoliciesandlegislationinplaceto

addressthis.Nearlytwo-thirds(63%)3ofbusinessleaders

agreethatbusinessesshouldacknowledgewaterusage

andefficientwatermanagementaskeyenvironmental

challengesassociatedwithAI.Buildingasectorthatisbothfitforpurposeandenvironmentallyresponsiblerequires

poolingexpertise,mobilizinginvestment,andimplementingregulatoryframeworksthatbalanceopportunitywith

environmentalstewardship.

Businessleaderswhoagreebusinessesshouldacknowledgewaterusageandefficientwatermanagementaskey

environmentalchallenges

associatedwithAI

63%

@2025BSI.Allrightsreserved.2

WaterSecurity-AGlobalPicture

TheUnitedNationshaswarnedthat,already,halftheworld’spopulationlivesinwater-stressedregions4.

Findingsfromour

2024ThirstforChange

partnership

withWaterwisereinforcedtheurgencyoftheglobalwatersecuritychallenge,revealingthatnearlyathird(29%)ofthe42countriesanalyzedfacehightoveryhighlevelsofwaterinsecurity.Thisissueisonlygrowingduetoacombinationofpopulationgrowth,climatechangeandeconomic

development,allofwhichisdrivingincreasingdemand.

Thisismorepronouncedinsomecountries,regionsor

indeedindifferentsectors,butitisanissuethatisrelevanttousall.

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@2025BSI.Allrightsreserved.3

Datacentersandwater

Againstthisbackdrop,ensuringthewaterefficiencyof

datacentersbecomesaglobalenvironmentalpriority.Datacentersareamongthetoptenwater-consumingcommercialindustriesworldwide5.

Themajorityofwaterconsumptioninthesectoris

indirect6,tiedtoelectricityproductionandsupply.However,

asignificantproportionofdirectwaterconsumptionisduetodatacentercooling-whichiscurrentlyafundamentalprocesstothesuccessfuloperationofthecenters7.Thousandsof

serversrunningaroundtheclockgeneratevastamountsofheat.Withouteffectivecooling,systemscouldoverheatandfailwithinminutes,causingbothoperationaldisruptionandcostlyhardwaredamage.

Tomanagethis,datacentersrelyoneitherair-coolingor

water-coolingsystems.Theformerapproachusesfansandairconditioningandislesseffectiveforhigh-densitycomputing

environments.Bycontrast,water-basedcoolingisfarmore

efficientatremovingheat8,whichexplainswhyhyperscale

operatorsincreasinglyfavorthismethoddespiteitssignificantwaterrequirements.Thescaleofconsumptionisstark,with

analysissuggestingthatasingleone-megawattdatacenterusingtraditionalmethodssuchasdirectevaporativecoolingcanconsumemorethan25millionlitersofwaterannually9.

Addressingthesechallengesrequiresproactivecollaborationacrosspublicandprivatesectors,fromregulationandpolicy,measurementandreportingandtheimplementationofwaterefficiencymeasures.Datacentersarerelatively‘new’

comparedtomoretraditionalinfrastructuresuchasenergy,

transportandwatersystems.Thismeansthattheypost

newconsiderationsbutalsothatwehavetheopportunityto

integratesustainabilityandwaterefficiencymeasuresinto

theirdesignandoperationsalmostfromtheoutset,rather

thanfacingthechallengesofretroactivelyaddressingthese

criticalenvironmentalissueslateron.Withexpertguidance,

standardsandframeworksofbestpractice,andassurance

tools,developersandoperatorscantaketangiblesteps

todaytoimprovethesustainability,andspecificallythewaterefficiency,oftheirfacilities,therebysafeguardingbothcurrentoperationsandfuturegrowth.

Asnationscompetetoharnesstheeconomicpotentialof

thedatacentersector,thebalancebetweenambitionandresponsibilitywillbecritical.Ensuringwaterefficiencyis

notonlyvitalfortheresilienceofthesector,butalso,astheAItransformationgatherspaceandmoredatacentersareneeded,forsecuringthewateravailabilityofnationsand

contributingtoawatersecureworldforall.

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@2025BSI.Allrightsreserved.4

Howdo

datacenterscompare?

Assessingwateruseacrosssocietalinfrastructure

Agricultureandirrigation

Globally,agricultureusesabout70%ofallfreshwaterwithdrawals10,translatingtomorethan7,570.82trillionlitersofwaterannually—over20trillionlitersperday.11

Hospitals

Waterconsumptionperhospitalbedcanvary,butresearchsuggestsittypicallyrangesfrom109,000to657,000litersannually,dependingoncountryandhospitaltype.Europeanhospitalsshowannualconsumptionbetween182,500and365,000litersperbed.12

Powergeneration

AccordingtotheWorldMeteorologicalOrganisation(WMO)13,in2020,87%ofglobalelectricitygeneratedfromthermal,nuclearandhydroelectricsystemsdirectlydependedonwateravailability.Europeis

reportedtouse72.3trillionlitersforenergyproductionannually14,whilsttheUSused179.8trillionlitersofwaterforpowergenerationin202015,andAustraliausedaround60trillionlitersofwaterforelectricity,gas,waterandwasteservicesthroughout2021.16

Golfcourses

Theaverage18-holegolfcoursecanuseuptoapproximately757.1millionlitersofwaterannually17.However,thiscanvarygreatlydependingonthelocationofthecourse,witharidregions(likethe

southwesternUSorsouthernSpain)requiringsignificantlymoreirrigation.

Publicswimming

pools

Whileatotalannualfigureisunavailable,publicswimmingpoolsarereportedtouseanaverageof96.1litersofwaterperperson,perday.18

Datacenters

Ahyperscaledatacentercanuseupto757.1millionlitersofwaterannuallytocoolitshardware19.A

medium-sized15-megawattdatacenterusesasmuchwaterannuallyasthreeaverage-sizedhospitalsormorethantwo18-holegolfcourses.20

WateruseforAI

MeanwhiletheAImodelGPT-3,anAImodel,isestimatedtoconsume500mlofwaterper10-50responses.By2027,globalAIdemandisexpectedtoaccountfor4.16-6.44trillionlitersofwaterwithdrawal20.

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@2025BSI.Allrightsreserved.5

Country

overviews:

Datacentresandwater

security21

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@2025BSI.Allrightsreserved.6

Watersecurityandsolutionsscore*

52/85Highhighwaterinsecurityandslowprogresstowardssolutions

Datacentercapacity

Estimatesrangefrom15322–27023

Valueofsector

Anestimated$10billion24

Futureprojections

Capacityprojectedtoreach3,400MW

by203025

Policyfocusonwaterefficiencyand

datacenters

No

*

ThirstforChange2024,WaterSecurity&SolutionsIndicator

providescountry-levelassessmentsandcomparisonsofthe

watersecuritychallengeandprogressbeingmadetowards

solutions.ItdrawsonpubliclyavailabledataandapublicattitudesurveyundertakenbyBSI.A‘verylow’scoreindicateslowlevelsofwaterinsecurityandgreatestprogresstowardssolutions.

India

AsacountryleadingthechargetoembraceAI,itfollowsthat

India’sdatacentersectorwasgranted‘infrastructurestatus’26tostreamlineaccesstolong-termcapital.In2020thegovernmentpublishedtheDraftNationalDataCentrePolicy27.Althoughnotinitiallyimplemented,thegovernmentreopenedplansin202528.TheplanaimstomakeIndiaa‘globaldatacenterhub’throughpolicymechanismssuchassimplifyingpolicytoasingle-windowclearancesystem,establishingDataCenterEconomicZones,

recognizingdatacentersas‘essentialservices’,andgrowingdomesticmanufacturingfordatacentercomponents.

Despitethispursuitofgrowth,thereappearstobeadearthof

nationalpoliciesaddressingthesustainabilityofthesefacilities29,althoughsomeintheindustryaretakingstepsthemselves(for

example,companiesincludingEquinix,WebWerksandCtrlSareprioritizinguseofair-cooledchillersoverwater-cooledchillers

fortheirIndiandatacenters).

ThedraftNationalDataCentrePolicy2020doesencouragetheuseofrenewableenergysourcesbutdoesnotmandatethem,anditdoesn’taddresstheissueofwaterconsumption.Thisis

despitewarningsofwatershortagesbeingahigh-riskfactorfordatacentersincitiesincludingChennai,Bengaluru,Hyderabad,andDelhi,andmoderate-to-highriskforMumbai.

@2025BSI.Allrightsreserved.7

50/85High-highwaterinsecurityandslow

progresstowardssolutions

44930datacentersreported,makingitthe

fourthhighestcountrygloballyfortotal

datacenters31andtheleadingnationin

Asia-Pacific.

$47.23Billionin202432

Expectedtogrowto$97.30billionby203032

Somelocalizedrequirements

Watersecurityandsolutionsscore*

Datacentercapacity

Valueofsector

Futureprojections

Policyfocusonwaterefficiencyand

datacenters

China

Chinaappearstobeexperiencingsignificantgrowthinitsdatacentercapacity,drivenbyfactorsincludingincreasingdigital

servicesanddatastorageneeds,aswellastherolloutof5Gnetworksandregulation33.

TheEasternDataandWesternComputingprojectwaslaunchedin2022withtheaimofsupportingcontinuedgrowthofthe

datacentersectorthrougharebalanceofsupplyanddemandacrossEasternandWesternChina34.EasternandSoutheasternregionsofChinaarehighlypopulatedandhostthemajorityofindustryandbusiness,resultinginahighdemandfornetworkprocessingcapacityandstorage.

Conversely,remoteWesternregionshavelowerpopulation

densityandsmallerindustrialandbusinesspresence,yethave

amplelandandaccesstoresources,inparticular,renewable

energyfromwind,solar,andhydroelectricpower,whichcan

beusedforcooling.Bydevelopingcomputinghubsanddata

centerclustersinthoseareas,theintentionisthattherewillbeenoughdatatosupplyChina’spopulousandeconomicallyactiveeasternregions.

TheChinesegovernmentdoesappeartohavesetsustainabilitytargetsfordatacenters,includingaroundenergyefficiency

andrenewableenergytargets35aswellaswaterefficiency

measures36.Forexample,inBeijing,NingxiaandGansuwaterefficiencystandardsfordatacenterprojectsareincreasingwithrequirementstoutilizeadvancedcoolingmethodsthatreducewaterconsumptionandthephasingoutofwaterandenergy

inefficientdatacenters.

@2025BSI.Allrightsreserved.8

39/85Medium–averagelevelsofwater

insecurityandmoderateprogresstowards

solutions

31437

$1.72billionasof202438

Expectedtoreach$4.98billionby203038

Somegeneralwaterpoliciesrelatedto

planningregulationsthatvarydepending

onlocaljurisdiction

Watersecurityandsolutionsscore*

Datacentercapacity

Valueofsector

Futureprojections

Policyfocusonwaterefficiencyand

datacenters

Australia

IntheirDataandDigitalGovernmentStrategy39,theAustraliangovernmentsetoutavision‘toimplementworldclassdataanddigitalcapabilitiestodeliveroutstandingoutcomesforall’.Thedocumentmadenomentionofdatacentercapacity,butthereisawideraimofpositioningAustraliaasaregionalAPAChub

fordatacenters40byprovidingclearregulatoryframeworks,andinvestmentincentives.

Sustainabilityisalreadyformingpartofdatacenterpolicy

andregulation,suchastherequirementfromJuly2025forall

datacentershostingfederalgovernmentworkloadstomeet

aminimum5-starenergyefficiencyratingundertheNational

AustralianBuiltEnvironmentRatingSystem41.Thegovernmenthasalsotakenstepstointroduceconditionsthatalldatacenterprovidersforthegovernmentcomplywithgreenhousegas

emissionthresholds,utilizeaccreditedrenewableenergyandaimforaPowerUsageEffectivenessoflessthan1.442.

Withregardstowaterefficiency,alldatacenterprojectsmustobtainconsenttoconnecttotherelevantwaterauthority’s

existinginfrastructureandcomplywithstateormunicipalitygeneralwaterpoliciesandplanningregulations43.Giventhat,aswehaveseen,datacenterstendtobehigh-waterdemandprojects,theymayfacefurtherrequirementswhereexistinginfrastructuredoesnothavethecapacitytocaterforthe

development.

@2025BSI.Allrightsreserved.9

US

“Withoutquestion,”PresidentTrumptoldanindustryaudience,“Americais

thecountrythatstartedtheAIrace.”46Datacentersareacriticalcomponentofthat,andweareseeingpolicyandlegislationaimedatacceleratinggrowthinthesector,withanexecutiveorderfacilitatingpermits47andensuring

infrastructureavailability48.

Atanationallevel,USdatacenterscomplywithgeneralfederallaws49

includingthoserelatingtogreenhousegasemissions,wastemanagement,wateruseandhazardousmaterials.However,theAmerica’sAIActionPlan,whichincludesover90initiativestargetingtherapidexpansionofhigh-

capacitydatacenters,makesseveralrecommendationsforenvironmentalregulationreform50,withtheproposalsfallingonthesideofdevelopmentratherthanresourceprotection.

Watersecurityandsolutionsscore*

53/85High-highwaterinsecurityandslow

progresstowardssolutions

Datacentercapacity

Reportedtobeover5,40044

Valueofsector

Valuedatapproximately$208billion

in202445

Futureprojections

Expectedtoreach$308billionby203045

Policyfocusonwaterefficiencyand

datacenters

No,howeversomestatesareconsidering

theintroductionofwaterefficiency

incentives

Theseincludecreatingnewcategoricalexclusionsforroutinedatacenter

relatedconstruction,creationofanationwidepermittoremovepre-

constructiondelays,streamliningorreducingregulationsforenvironmentalrelatedpermits,anddirectingagencieswithsignificantfederallands

availabletoidentifysitessuitedforlarge-scaleconstructionofdatacenters.

Whiletheplandidnotprovidestepstoachievetheserecommendations,an

ExecutiveOrder51wasissueddirectingagenciestofast-trackenvironmental

permittingunderlawssuchastheCleanWaterAct,CleanAirAct,andNationalEnvironmentalPolicyAct.

Whileprogressonenvironmentalconsiderationsappearslimitedatthe

federallevels,somestateswithahighernumberofdatacentershave

introducedorareconsideringregulationsonwaterefficiencytoaddress

droughtandscarcityrisks.ExamplesincludeCaliforniaproposingtax

incentivesfordatacentersadoptingwater-efficientcoolingsystems(althoughthestrengthoftheseplansappearstobeinquestion)52,orplansinTexasto

allocatebillionstowardswaterinfrastructure53inresponsetoreportsthat,by2030,datacenterswillaccountforapproximately6.6%ofthestate’stotalwateruse54.

@2025BSI.Allrightsreserved.10

48/85High-highwaterinsecurityandslow

progresstowardssolutions

22255

Valuedatapproximately$20.5billion56

Expectedtogrowtoover$40billion

by203356

PhasedapproachoflegalrequirementforESGreportingincludingwateruse.StartingwithlargestlistedcompaniesinMarch2027

Watersecurityandsolutionsscore*

Datacentercapacity

Valueofsector

Futureprojections

Policyfocusonwaterefficiencyand

datacenters

Japan

Intermsofthesector’svalue,JapanappearstobeAsia’ssecond-largestdatacentermarketandthethirdgloballybehindtheUSandChina57.Thisrelatestobusinessesadoptingdigitaltechnologiessuchascloudcomputing,AI,theInternetofThings(IoT),and5G,aswellasthecountry’srobustandstable

infrastructurefoundation,strategiclocation,reliablepowersupply,favorableregulatoryenvironmentandgovernmentsupportforthesector,includingtaxincentives.

TheJapanesegovernmentpositioneddatacentersasastrategicsector

intheirso-called“GrandDesignandExecutionPlanforaNewFormof

Capitalism—2024Revision”highlightingthesectorasapriorityforeconomicgrowth58.Thegovernmentaimstodevelopadigitalinfrastructuretosupportan“AIsociety”bythe2030s,withfourpillars59:decentralizingdatacenters

outsideurbancores,fosteringR&Dandimplementationofnewtechnologies,expandingglobalnetworkconnectivity(suchassubmarinecablelanding

stations),andcoordinatingwithdecarbonizationpolicies.

Japan’sdatacenteroperatorsarerequiredtoreportannuallyontheirPowerUsageEffectiveness(PUE)60andareexpectedtoachieveatargetPUEvalueof1.4.Thisispairedwiththegovernment’sGreenGrowthStrategy61whichrequiresdatacenterstoachievea30%reductioninenergyuseby2030

andreachcarbonneutralityby2040.Otherinitiativesincludethe‘Watt-Bit

Collaboration’strategywhichencouragestheco-locationofdatacentersandgigawatt-scalerenewableorlow-carbonenergysources.

Despitethesepositivemoves,therearecurrentlynonationallawsorguidelinesregardingwaterconsumptionofdatacenters.TheSustainabilityStandards

BoardofJapanissuedinauguralsustainabilitydisclosurestandardsinMarch

202562,requiringlarge,listedcompanies,oftenincludingdatacenteroperators,toreportontheirclimatestrategy,energyuse,andotherESGmeasures

includingrequirementsthatrelatetowaterusefromMarch2027.

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40/85Medium-averagelevelsofwater

TheNetherlands

Watersecurityandsolutionsscore*

Datacentercapacity

Valueofsector

Futureprojections

Policyfocusonwaterefficiencyand

datacenters

insecurityandmoderateprogresstowards

solutions

DatacentercapacityintheNetherlandsisestimatedto

representa2.8%shareoftheEuropeanmarket.Thisishelped

29863

bythecountry’sstrongdigitalinfrastructure,whichisrecognizedasaprioritybythegovernment,whoareencouraging

coordinateddevelopment.

Valuedatapproximately$1.22billion64

SustainablegrowthoftheDutchdatacentersectorisakey

Significantgrowthprojectionsestimatingavalueof$3.39billionby203064

CombinationofnationalandEUpolicies

priority,withTheNetherlandsenforcingacombinationof

nationalandEUpolicies65,includinglegislationandregulation

suchastheEUEnergyEfficiencyDirective,theCorporate

SustainabilityReportingDirective,theEUTaxonomyRegulationandtheOmgevingswet(EnvironmentalAct).EUmemberstatescanalsofollowthevoluntaryinitiativeEUCodeofConducton

DataCentreEnergyEfficiency66,whichalongsideenergycontainswater,heat,andresourcereuseconsiderationsforoperators.

Alloftheseincluderequirementsrelatingtobothenergyand

wateruse,aswelltheErkendeMaatregelenlijst(Recognized

listofmatters),whichmandatestheimplementationof

government-approvedenergy-savingactionsincludingthe

upgradingofcoolingsystemswhichcanimpactthewater

efficiencyofthedatacenter.TheNetherlandsalsoenforcestheVerdringingsreeks(Displacementseries),anadditionalmeasuretosupportwatersecurity,wherebyinperiodsofwaterscarcity,localwaterauthoritiesfollowahierarchytoprioritizewater

allocation,withdrinkingwaterneedsalwaystakingprecedenceoverdatacenterorindustrialcoolinguse67.

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Watersecurityandsolutionsscore*

37/85Low–lowlevelsofwaterinsecurityandgoodprogresstowardssolutions

Datacentercapacity

322,with17-21moreinplanning68

Valueofsector

Generatedanestimated$8,819.1millionin202569

Futureprojections

$14.02millionin203069

Policyfocusonwaterefficiencyand

datacenters

CombinationofnationalandEUpolicies

France

TheParismetropolitanareaaccountsforover80%ofFrance’sdatacentersupply70.

Overall,thecountryhasambitiousdatacentertargets,andthepresidencyand

governmenthavepubliclyframedapushtomakeFranceanAIandcloudcomputehub.Thisincludesambitionstoscaledatacentercapacitysubstantiallythroughthecomingdecade,withPresidentMacronannouncinga$109billioninvestmentinAI71whenthecountryhostedaglobalAIsummit.France’snationalindustrialstrategy

explicitlyprioritizescoredigitalinfrastructureandcomputecapacityaspartofwidertechsovereigntyandAIgoals72.

DatacentersareregulatedunderFrance’sICPEregimeforenvironmentalprotection(InstallationsClasséespourlaProtectiondel’Environnement)73,withobligations

fordeclarationsandauthorizationsrelatedtoenergyandcoolingsystems.Theregimeincludesreviewsofwaterabstraction,discharges,biodiversityandotherenvironmentalimpacts.Operatorsalsofacepenaltiesincludingfinesandpublic“nameandshame”measuresfornon-compliance.

TheFrenchgovernmenthasalsoofferedpartialortotalenergytaxexemptionsfordatacentersthatmeetspecifiedenergy-efficiencycriteria74,withleverstolower

operatingcosts.Inaddition,FrancehasnowtransposedtheEuropeanEnergyEfficiencyDirective(EED)intoFrenchlawsettingoutaregulatoryframeworkforassessingtheenergyperformanceofdatacenters.

WaterabstractionanddischargefordatacentersinFranceisregulatedunderthe

nationalWaterCode75.Projectsthatwithdrawwaterabovestatutorythresholds

musteitherdeclareorobtainauthorization,whichwouldlikelyapplytodatacentersrequiringwaterforcooling.FrancealsoenforceskeyEUregulationsincludingthe

CorporateSustainabilityReportingDirective(CSRD)andtheEUTaxonomy,regulatoryframeworksthatareactivelyshapingwateruseandbroaderenvironmental

measuresfordatacenters.EUmemberstatescanalsofollowthevoluntaryinitiativeEUCodeofConductonDataCentreEnergyEfficiency76,whichalongsideenergy

containswater,heat,andresourcereuseconsiderationsforoperators.

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@2025BSI.Allrightsreserved.

41/85Medium-averagelevelsofwater

insecurityandmoderateprogresstowards

solutions

Approximately529datacenters77

Themarketisexpectedtogenerate$23.13

billionin202578

Expectedtogrowto$32.30bnby203078

CombinationofnationalandEUpolicies

Watersecurityandsolutionsscore*

Datacentercapacity

Valueofsector

Futureprojections

Policyfocusonwaterefficiencyand

datacenters

A

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Germany

Germanyappearstobethelargestdatacentermarketin

Europebynumberoffacilities,withmanynewlarge-scaledatacenterprojectsunderway.Thefederalgovernmentdescribes

datacentersascoretoGermany’sdigitalinfrastructureand

innovationstrategy79andisdevelopinganationalapproachtostrengthenGermanyasadata-centerlocationwhileprotectingenergyandclimategoals.GermanyisalsolookingtotheEU

forbackingforlargeAIdata-processingfacilitiesandtoalignnationalpolicywithEUinitiatives(e.g.,fundingtobuildAI

“gigafactories”andstrengthenEuropeanAIinfrastructure)80.

Inaddressingthesustainabilityofdatacenters,theGerman

EnergyEfficiencyAct(Energieeffizienzgesetz)imposesbindingenergy-efficiencyobligationsthatexplicitlycoverdatacenters81.Thisincludesregulationscoveringtheavoidanceanduseof

wasteheat,powerusageeffectiveness,powersupplyfromrenewableenergiesandtheimplementationofenergyandenvironmentalmanagementsystems.

TheFederalWaterAct(WHG)isGermany’smainnational

waterlaw82.Itimplements,amongotherthings,theEUWaterFrameworkDirective,aswellasregulatingabstractionand

dischargetowaterbodies.Permitsorotherauthorizationsarerequiredwhenthresholdsarecrossed.

UndertheEUEnergyEfficiencyDirective(EED),datacenter

operatorsinGermanyhavereportingobligationswhichincludewaterusage83.GermanyalsoenforcestheEU’sCSRDandotherkeyregulations,whichplayacentralroleinwatermanagement.EUmemberstatescanalsofollowthevoluntaryinitiativeEU

CodeofConductonDataCentreEnergyEfficiency84,whichalongsideenergycontainswater,heat,andresourcereuseconsiderationsforoperators.

@2025BSI.Allrightsreserved.14

42/85Medium-averagelevelsofwater

insecurityandmoderateprogresstowards

solutions

450datacenters85

A

sectorvaluation

ofapproximately$21.26

Watersecurityandsolutionsscore*

Datacentercapacity

Valueofsector

Futureprojections

billionin202586

Expectedtoreach$29.78billionby203086

SomeEUpoliciesareapplicableand

recommendationshavebeenmadeby

governmentagencies,butarenotcurrently

legalobligations

Policyfocusonwaterefficiencyand

datacenters

UK

TheUKgovernmentissupportingdatacentergrowththroughplansincludingtheAI

OpportunitiesActionPlanandtheUKComputeRoadmap87.Thesefeaturesubstantial

commitments,includingupto￡2billioninvestmentby2030todevelopamoderncomputeecosystemandAI-readycenters.In2024,thegovernmentformallydesignatedUKdata

centersasCriticalNationalInfrastructure88,givingthemprioritystatusalongside89energy,waterandtransportaswellasstrongerprotectionandsupportagainstcyber-attacks,

environmentaIdisastersandoutages.

UndertheEnvironmentAct2021,newUKdatacenter