Data centre water consumption could triple to 644 billion litres by 2030
Rystad Energy reports global data centre water use could rise from 222 billion litres in 2025 to 644 billion by 2030 without efficiency gains, driven by AI expansion. Active water-saving measures could reduce this to 543 or 388 billion litres. Water use varies by cooling tech, climate, and electricity supply. AWS, Meta, Microsoft, and others report differing WUE metrics and aim to be water-positive by 2030. Regulations are emerging in Europe, Singapore, and the US.
How this was made
The 30-second read
Why it matters
Sector‑wide water‑stress could become a material cost factor and regulatory focus, affecting valuation and ESG scores of listed data‑center owners.
Market read
Water‑use projections signal emerging operational and regulatory risks for data‑center operators, potentially influencing ESG investment flows.
What to watch
The indirect water footprint tied to electricity generation may dominate total consumption, shifting focus to renewable power sourcing rather than cooling tech alone.
Background
The article provides Rystad Energy's forecast of global data‑center water consumption and compares water‑use metrics across major operators.
Ticker impact
AWS reported a direct site water use effectiveness of 0.12 L/kWh in 2025, highlighting its water efficiency metrics.
Potential modest upside as ESG funds increase exposure.
Water‑efficiency data is new and could differentiate AWS from peers, but no immediate financial impact is disclosed.
Meta disclosed a water use effectiveness of 0.19 L/kWh for 2024, part of its water‑positive target by 2030.
Limited short‑term effect; long‑term ESG positioning may benefit valuation.
The metric is a sustainability disclosure without direct revenue impact.
Microsoft reported a water use effectiveness of 0.27 L/kWh for fiscal 2025, indicating higher water intensity than AWS.
No immediate price move expected.
The figure is a baseline metric; no actionable catalyst is identified.
Digital Realty disclosed a water use effectiveness of 0.59 L/kWh in 2025, the highest among the listed operators.
Potential downside if water‑related regulations tighten.
Higher water intensity could affect operating costs under stricter standards.
Equinix reported a water use effectiveness of 0.91 L/kWh in 2025, indicating significant water consumption.
Possible modest pressure on share price if regulatory actions materialize.
The disclosed metric signals exposure to water‑stress risk.
Market effects
Highlights growing water‑stress risk for the data‑center sector and may spur ESG‑focused investment themes.
Regions with high water stress (e.g., Texas, parts of India) could see tighter permitting and higher operating costs for local data‑center operators.
Rising AI‑driven capacity could amplify water demand worldwide, influencing global sustainability regulations.
Counterpoint
Water‑efficiency improvements and dry‑cooling technologies could mitigate the projected water surge, limiting long‑term cost impact.
Key entities
- Research FirmRystad Energy
Provides the water‑consumption forecasts and scenario analysis.
- CompanyAmazon Web Services
Largest cloud provider; disclosed low water‑use effectiveness.
- CompanyMicrosoft
Cloud services provider; disclosed higher water intensity.
