Government sets new expectations for data centres’ electricity and water use

The Government has published a new Data Centre Covenant setting out expectations for how major data centres should manage electricity, water consumption and infrastructure resilience. The policy aims to support the expansion of digital infrastructure while limiting unnecessary pressure on essential resources.

Why are data centres important to national resilience?

Data centres provide the computing infrastructure behind many everyday services.

They support online banking, communications, business systems, public services and increasingly artificial intelligence.

As demand for digital services grows, the UK is expected to need more data centre capacity.

However, these facilities can require substantial amounts of electricity and, depending on their design and cooling systems, water.

That creates important questions about resource use, particularly in areas already experiencing pressure on electricity networks or water supplies.

What does the new Data Centre Covenant require?

Published on 28 October 2026, the Covenant establishes expectations covering energy efficiency, water consumption, security and community benefits.

The Government encourages all data centres to meet the standards, while strategically important projects must meet specified requirements to qualify for additional government support.

The policy calls for facilities to use water efficiently and minimise unnecessary demand on public supplies.

It also encourages the use of technologies such as closed-loop cooling systems.

New facilities should be designed to achieve a Power Usage Effectiveness rating of 1.3 or better.

This measure compares a data centre’s total energy consumption with the energy used by its computing equipment.

Lower ratings generally indicate less additional energy is being consumed by supporting infrastructure.

Will data centres have to report their water consumption?

The Covenant says strategic data centres should publish annual information about their energy and water use.

The Government also encourages existing operators to provide comparable information.

This could improve transparency about the resources used by large facilities.

The policy additionally encourages developers to capture and reuse waste heat where practical.

For example, excess heat could potentially support nearby buildings where suitable infrastructure exists.

How will essential services be protected?

The Covenant also addresses cyber and operational resilience.

Data centres supporting important national services are expected to work with relevant security authorities and prepare for foreseeable disruption.

This includes considering the reliability of critical suppliers and participating in appropriate emergency exercises.

These measures are intended to strengthen the infrastructure on which increasingly digital public services depend.

What does this mean for water and energy security?

The policy recognises that digital infrastructure cannot be considered separately from the resources needed to operate it.

However, the publication of the Covenant does not establish that data centres are responsible for current water shortages or electricity problems.

The practical impact will depend on how its standards are implemented and how individual developments are designed.

For households, the announcement reinforces the importance of understanding how different services depend on one another.

Prepper Weekly’s guide to coping with water shortages explores practical household water resilience.

Source: HM Treasury: The Data Centre Covenant. Published 28 October 2026.