By Henry Zhang, Water Lead, Bellwether Group.
A recent article from ABC News (link here) highlighting the growing water demands of data centres including projections linked to Sydney Water reflects conversations we’re increasingly having across the infrastructure sector.
Modern data centres are essential to Australia’s digital future, but they are also highly water-intensive assets, placing additional pressure on systems that are already stretched. As demand for AI and high-performance computing accelerates, so too does the need to think differently about how we plan and service this infrastructure.
One of the most practical opportunities lies in recycled water. By sourcing recycled water from nearby wastewater treatment plants, we can significantly reduce reliance on potable supplies while creating a more sustainable pathway for digital growth. Done well, this approach not only protects vital resources; it positions Australia to compete globally in the rapidly expanding AI and technology sector.
Location matters. Data centres require far more water and power than traditional industrial developments, making strategic site selection critical. Co-locating facilities near both wastewater treatment plants and power substations can reduce infrastructure costs, lower operational risk and deliver stronger long-term outcomes for communities and industry alike.
At Bellwether, we’re seeing firsthand how early-stage planning, cost certainty and cross-sector collaboration can unlock better project outcomes. Whether supporting water utilities, energy providers or major industrial clients, the most successful projects are those where infrastructure decisions are made early, with long-term operational resilience in mind.
Meeting this challenge will take collaboration. Local councils, water utilities, power providers and industry all have a role to play. With proactive planning and genuine coordination, we can build resilient digital infrastructure that supports economic growth while safeguarding essential resources.
It’s not just about keeping pace with technology, it’s about making thoughtful decisions today that set Australia up for a sustainable, future-ready tomorrow.
