How can data centres grow without exhausting local resources?

Modern data centres consume enormous amounts of electricity for servers and cooling, needing substations and major grid connections to operate smoothly. Unless energy supply is generated from renewable sources, there is often a reliance on fossil fuels, which raises carbon emissions and puts pressure on local power supplies.

Cooling is a major challenge for data centres, particularly those that utilise traditional water-based systems. One large data centre can use approximately 19 million litres of water each day for cooling, which is around 5 million gallons daily. In a year, this equates to roughly 6.8 billion litres, or 1.8 billion gallons, per facility. That’s enough water to fill 2,720 Olympic-sized swimming pools each year.

In areas where water supply is already limited, the sheer volume of water that data centres consume can often reduce the availability of clean water for local communities, households, farms and businesses. It can also threaten natural ecosystems and wildlife.

Latency, the time data takes to travel between two points, is another challenge for data centres. Lower latency enables faster responses and connectivity that are vital for real-time analytics, AI, live streaming and gaming.

Minimising the physical distance between servers can help process data with minimal delay. However, land shortages in cities and urban centres can make it harder to build large data centres and securing approvals for these facilities can also take a long time, prompting operators to look to regional locations instead.

While data centres can sometimes place significant demand on local resources, they represent an untapped opportunity to give back to their regions. Instead of contributing only a few long-term jobs and limited infrastructure, operators should partner with local governments, businesses and residents to create genuine and lasting shared value. This could be through supporting renewable energy initiatives, investing in local skills development and funding projects that enhance neighbourhood facilities, like parks and community centres. With thoughtful engagement and investment, data centres can become active partners in the growth and resilience of their local communities.

Data centres are moving away from water-based cooling in favour of more efficient, water-light, refrigerant-based systems and advanced pipework. Immersion cooling, where chips are submerged in specialised liquids for better heat transfer, is another approach that’s gaining traction. It’s expected that this approach will become mainstream within three to five years.

Operators are also designing flexible spaces ready for future cooling upgrades and higher power loads, reflecting a shift to integrated cooling and energy strategies that can reduce emissions and resource use, support modularity, improve reliability and maintain lasting performance.

At GHD, we believe the future of digital infrastructure can, and must, deliver for people and planet. As data centres rapidly expand, we need solutions that balance technological growth with environmental sustainability and real community benefits. Getting there will take collaboration and innovative thinking across industry, government and local stakeholders.

GHD has deep technical knowledge and experience in sustainable design, efficient energy solutions and advanced cooling systems. We work closely with clients to integrate technologies and solutions that make operations more efficient, conserve resources, reduce environmental impact and create shared benefit for all.