2 days ago
Thames Water faces rocketing demand for supplies
Thames Water has warned that plans to build 100 new data centres across London and the South East will pile more pressure on its creaking infrastructure.
The utility giant said it had identified 108 'hyper or large' data centres that will drive up demand in its region, with bosses suggesting it will have to manage water supplies carefully to ensure there is no impact on households.
Each data centre is equivalent to thousands of homes being added to a water network, meaning the pipeline of new data centres is on par with a new small city being built.
In its annual report, Thames Water said that building data centres 'needs to be carefully managed from a demand and UK growth perspective'.
The company, which is battling to avoid nationalisation amid pressure from a £17bn debt pile, has previously raised the prospect of rationing water use for data centres or charging more at peak times.
Data centres contain giant racks of computer servers that need to be cooled to avoid overheating, often with water piped in. The facilities are crucial to the rise of artificial intelligence and are a key priority for Sir Keir Starmer's growth push.
However, the vast number being built has sparked concern among water companies such as Thames Water, which is now engaging with the Government to prevent potential shortages in future.
'The south-east of England is a water-stressed region and data centres can use a vast amount of water, equivalent to the usage of thousands of homes at peak draw,' a Thames Water spokesman said.
'With a large proportion of the proposed data centres earmarked to be built in the Thames Water region, it brings a challenge between safeguarding our finite resources while supporting the UK's growth strategy.
'It is important that we work collaboratively to meet this challenge and to avoid exacerbating water stress and impacting service for customers and the environment.'
'We are engaging with the Government regarding the challenge of water demand related to cooling data centres and how this can be mitigated. We are also working with a number of data centre providers about opportunities to reduce demand through innovation.'
A corridor of land between London and Slough, much of which is served by Thames Water, contains Britain's densest collection of data centres.
An independent review of the water sector last week cited data centres as one of the factors that are likely to mean water bills rising by 30pc over the next five years.
The report, by Sir Jon Cunliffe, a former deputy governor of the Bank of England, said that national infrastructure bodies should be consulted when deciding where to build them.
The Government has welcomed investment in new data centres, including designating them as critical national infrastructure.
Thames Water last week started a hosepipe ban for more than 1 million people in Gloucestershire, Oxfordshire, Berkshire and Wiltshire.
The company is also seeking to agree a rescue deal with creditors, but has warned it may fall into special administration if talks between the lenders and regulator Ofwat fail.
