Australia’s AI boom is facing a water reality check.

A photo of the Global Switch data centre in Ultimo of Sydney, Australia taken on May 9, 2025. Courtesy of Kevin Lee
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Australia’s utility industry warns the country’s current water supply is not enough to accommodate the explosive growth of data centres and artificial intelligence (AI).
The Water Services Association of Australia (WSAA), the nation’s peak water body, says data centre developers are seeking about 5 to 40 million litres of water per day to cool down their facilities.

