**Europe’s Ambitious AI Strategy Faces a Critical Challenge: Water Scarcity**
Europe’s drive to become a global leader in artificial intelligence (AI) is running up against a seldom-discussed but deeply significant environmental issue: water scarcity.
The European Union (EU) has ambitious plans to expand data center capacity, aiming to at least triple it over the next five to seven years as part of its effort to become a world-class AI hub. Data centers power virtually all aspects of the digital economy—from social media and online banking to AI tools like ChatGPT.
However, the rapid expansion of data centers has raised concerns, especially in regions already grappling with water scarcity. This issue is particularly pressing in southern Europe, where around 30% of the population lives in areas experiencing permanent water stress—a condition where water demand exceeds supply for a sustained period.
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### Why Water Scarcity Matters for Data Centers
Data centers require substantial water quantities to keep their servers cool and prevent overheating. Large tech companies such as Amazon, Microsoft, and Meta have invested billions in new data centers in Spain, while Google plans to develop three hubs in Greece’s Attica region—both regions noted for their water challenges.
Kevin Grecksch, Associate Professor of Water Science, Policy and Management at the University of Oxford, told CNBC that building data centers in water-stressed areas shows a worrying lack of integrated policymaking.
> “AI is a buzzword and the talk of the town. So, national and regional politicians try to get their hands on it, and it sounds as if you’re investing into the future, creating a few new jobs, but sustainability seems to be an afterthought,” Grecksch said.
He also raised many unanswered questions about prioritizing water supply—for example, in drought scenarios, since public water supply generally takes precedence, what happens if data centers need to be shut down?
Grecksch pointed out the paradox that data centers often prefer arid or semi-arid climates because these are ideal for servers, yet these areas are prone to water scarcity and drought.
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### EU’s Stance on Sustainability and Energy Efficiency
A spokesperson from the European Commission, the EU’s executive arm, noted that the European High Performance Computing Joint Initiative (EuroHPC JU) selects AI factory hosting sites based on energy efficiency and environmental sustainability criteria.
> “Green computing will continue to be pursued through energy-efficient supercomputers optimized for AI, using techniques such as dynamic power saving and reuse, including advanced cooling and recycling of the heat produced,” the spokesperson told CNBC.
As an example, the EU highlighted the “JUPITER” supercomputer in Jülich, Germany, which runs entirely on renewable energy and showcases cutting-edge cooling and energy reuse technologies.
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### Water Footprint Concerns in Data Center Locations
In Aragon, northeastern Spain—a region of severe water stress—Amazon’s plan to open three data centers has sparked tensions between local farmers and environmental activists. Similarly, in the UK, an English village called Culham has been identified as an AI “growth zone” near a recently built reservoir, raising concerns about further pressure on local water resources.
Nick Kraft, senior analyst at political risk consultancy Eurasia Group, explained that many data centers being developed in Europe’s most arid and water-stressed areas complicate the water availability picture.
> “The common understanding of data center water usage usually focuses on on-site consumption for cooling. However, more than half of their water footprint is actually off-site, in energy generation and semiconductor manufacturing,” Kraft said.
Although data center operators are beginning to improve their water stewardship, assessing the full water footprint remains a significant challenge.
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### Industry Response and Innovation
Michael Winterson, Secretary General of the European Data Centre Association (EUDCA), emphasized that the industry takes water consumption seriously.
> “Water treatment and collection is now normal for us. Continual innovations are reducing the energy and water needed, approaching near zero chemical treatment,” Winterson said.
He noted that the next big step for European data centers is to secure non-potable water feeds—water unfit for drinking but usable for industrial purposes—which helps conserve potable water supplies and reduces chemical treatment and energy usage.
Several companies are pioneering sustainable designs. Microsoft has trialed data centers that consume zero water for cooling. Similarly, Start Campus’s facility in Sines, Portugal, achieves a water usage effectiveness (WUE) score of zero by recycling seawater.
Winterson also highlighted the economic importance of data centers:
> “This sector contributes trillions of dollars in GDP and millions of technology jobs across Europe, with salaries significantly above national averages. A 20-megawatt data center uses about the same amount of water as a golf course. But how much GDP do golf courses create? What kind of jobs?”
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### The Growing Water Crisis in Europe
European lawmakers have long warned about the escalating water crisis affecting the continent, urging urgent action on scarcity, food security, and pollution amid Europe’s status as the fastest-warming continent.
According to the European Environment Agency, water resources are under “severe pressure,” with water stress impacting one-third of Europe’s population and territory.
Laura Ramsamy, Climate and Hazard Lead at data analytics platform Climate X, stressed that the rapid deployment of hyperscale data centers in already water-stressed areas only worsens the problem.
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### Case Studies: Netherlands and Ireland
In the Netherlands, Meta paused plans to build a large data center in Zeewolde in 2022 following environmental objections tied to excessive power and water consumption.
Ireland, known for embracing data center development during the AI boom, has recently faced criticism from environmental groups. Most centers are clustered in the Dublin area, prompting authorities to impose effective bans on new data centers in upcoming years over concerns about grid capacity and environmental impact.
An Ireland Department of Climate, Energy and the Environment spokesperson said data centers have positively contributed to the Irish economy over the past decade and stressed that the largest centers primarily use air cooling instead of water cooling, differentiating Ireland from many global locations.
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### Conclusion
Europe’s pursuit of AI leadership and data center expansion presents exciting economic opportunities but also underscores a pressing need to balance technological growth with environmental sustainability—particularly water resource management. As data centers continue to proliferate, integrated policies and innovative water stewardship practices will be critical to ensure that Europe’s digital ambitions do not deepen an already alarming water crisis.
https://www.cnbc.com/2025/10/16/water-ai-mega-projects-raise-alarm-in-some-of-europes-driest-regions.html
