Key facts
- UK ministers are exploring making water more expensive for some users amid severe supply shortages.
- Nearly three-quarters of England and all of Wales are in drought, with 27 million people facing water use restrictions.
- The Environment Agency estimates England's water supply could be short by 5 billion liters a day by 2055 without intervention.
- Currently, large industrial customers pay less per liter the more water they use.
- Datacenters in England use an estimated 6.6 million liters of drinking water daily.
- Water UK estimates datacentre capacity could triple by 2030, potentially increasing daily drinking water use to 19.8 million liters.
UK ministers are considering increasing the price of water for certain users, including large industrial consumers, as the country grapples with severe water shortages. Despite being a nation known for its rainfall, England is experiencing drought conditions affecting nearly three-quarters of its land, with all of Wales also impacted. Consequently, 27 million people are facing restrictions on their water usage.
The Environment Agency estimates that without intervention, England's water supply could be deficient by 5 billion liters per day by 2055, a gap exacerbated by the worsening climate crisis and rising demand. Helen Wakeham, the agency's director of water, stated that the current system does not reflect the value of water, particularly for industrial users who often pay less per liter the more they consume. She indicated that a "lively conversation" is underway regarding a potential reevaluation of how water is valued and paid for, with ministers requesting a review of the abstraction licensing system.
Concerns have also been raised about the water demands of new infrastructure, such as AI-driven datacenters. Water UK, the industry's trade body, has warned that the UK may not have sufficient water resources to support the planned expansion of datacentres, which currently consume approximately 6.6 million liters of drinking water daily. This figure could rise to 19.8 million liters per day by 2030 if datacentre capacity triples as projected. Dr. Doug Parr of Greenpeace UK criticized the disparity, noting that while the public faces higher bills and hosepipe bans, major companies benefit from cheap water access, urging a complete rewrite of abstraction policies.