Data center operators balance water and energy use as demand grows

TechnologyEnvironment
12 Apr 2026 • 12:06 AM MYT
The Manila Times
The Manila Times

One of the longest-running English broadsheets in the Philippines

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DATA center operators are intensifying efforts to manage water consumption as global demand for digital infrastructure rises, with new 2024 sustainability data from Equinix showing increasing pressure on water resources alongside efficiency gains.

Industry data show that total water consumption across a global data center portfolio reached 4,180 megaliters, up from 3,580 megaliters the previous year, even as overall withdrawal declined from 5,970 to 5,440 megaliters, according to Equinix’s 2024 Sustainability Data Summary.

The figures reflect a growing challenge: improving efficiency while scaling infrastructure to meet rising computing needs.

Rising demand, shifting water sources

Data centers rely on water primarily for cooling systems that prevent overheating of servers and equipment. As facilities expand, operators are increasingly shifting toward alternative water sources.

Non-potable water use rose to 37 percent in 2024 from 25 percent in 2023, indicating a move away from municipal supply toward reclaimed or alternative sources, based on Equinix data.

At the same time, water withdrawal from areas experiencing high baseline water stress increased from 1,910 to 2,140 megaliters, highlighting continued exposure to regions with limited water availability.

Water consumption in these stressed areas also rose significantly, from 1,120 to 1,680 megaliters.

Efficiency gains and trade-offs

Operators are measuring water performance using water usage effectiveness (WUE), a metric that compares water consumption with energy use in data center operations.

In 2024, average WUE improved to 0.95 from 1.07 across all facilities, indicating more efficient water use per unit of energy, according to the company’s sustainability report.

Facilities using evaporative cooling — which consumes water to dissipate heat — recorded a higher WUE of 1.55, down from 1.63 a year earlier.

These gains, however, reflect a broader operational trade-off. Reducing water consumption often requires shifting to air-cooled systems, which use more electricity. Conversely, water-intensive cooling methods can reduce energy demand.

This interdependence between water and energy efficiency has become a central issue in data center design and operations.

Expanding infrastructure footprint

The data come amid continued global expansion of digital infrastructure. Equinix reported operating 268 data centers across 74 markets in 35 countries, supporting cloud, enterprise and network services.

Electricity consumption across this footprint reached 8,560 gigawatt-hours in 2024, underscoring the scale of energy and resource requirements tied to digital services, based on the company’s sustainability disclosures.

At the same time, Equinix reported maintaining high levels of renewable energy use, with 96 percent of electricity consumption sourced from renewable energy in 2024.

Policy and reporting gaps

Despite improvements in efficiency metrics, inconsistencies in reporting remain a concern.

Water usage effectiveness does not distinguish between types of water sources, such as potable water, groundwater or reclaimed water. Industry disclosures also vary in scope, with some operators reporting portfolio-wide figures and others focusing on specific facilities.

To address this, Equinix reports multiple WUE figures, separating overall performance from facilities that rely on water-intensive ­cooling systems.

Sustainability pressures intensify

The growing demand for data processing — driven by cloud computing, artificial intelligence and digital services — is increasing scrutiny on how infrastructure uses natural resources.

Operators are responding by integrating water assessments into site selection, prioritizing locations based on local water availability and long-term sustainability.

The shift toward reclaimed water, improved efficiency metrics and localized design strategies reflects a broader effort to align digital expansion with environmental constraints.

However, the latest data suggest that absolute water consumption may continue to rise alongside capacity growth, even as efficiency improves, underscoring the complexity of balancing technological demand with resource sustainability.