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UK water shortage threatens datacentre expansion and AI growth plans

Executive summary: The UK water trade body said the country will not have enough water to support planned datacentre growth, undermining the government’s AI expansion strategy. Datacentre cooling consumes large volumes of water; a shortage could stall AI projects, raise operational costs, and force a rethink of location or technology choices.

Who is involved: UK water industry trade body, UK government, Datacentre operators, AI firms

Likely next: Government may review water allocation or incentivise alternative cooling technologies, Datacentre firms could accelerate water‑recycling or liquid‑cooling pilots

The UK water industry warns that existing water supplies are insufficient to cool the datacentres needed for the government’s AI ambitions, calling the current plans ‘fatally flawed’. Datacentres rely heavily on water for cooling, and any shortfall could delay or increase the cost of AI infrastructure projects across the country.

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