Finger on the Pulse: How Data Centres in Asia are Embracing a Water-Resilient Future
This edition of Finger on the Pulse dives into three strategies to bolster water resilience while supporting Asia’s booming digital economy.
Asia's digital economy is booming, with Southeast Asia alone projected to reach US$600 billion in gross merchandise value (GMV) by 2030. This surge is driven by a growing urban population, rising incomes and widespread digital adoption. Behind this remarkable growth lies an often-overlooked enabler: the data centre industry, which attracted US$15.5 billion in investment across Asia-Pacific in 2024 — more than any other region globally.
Over the years, data centres have evolved in both scale and sophistication to meet growing demands. What began as infrastructure powering traditional enterprise computing has steadily expanded to support increasingly data-intensive applications. Now, artificial intelligence (AI) is creating new, massive demands on this infrastructure, with global demand for data centre capacity projected to more than triple by 2030.
Yet, these facilities rank among the world's most energy and water intensive operations, raising important questions about sustainability as demand continues to climb. This underscores the growing tension between digital progress and responsible resource management in an increasingly connected world.
The Water Footprint of Data Centres
The scale of water consumption in data centres is staggering. A single hyperscale facility can use up to 1.5 million litres of water a day for cooling — equivalent to the daily water usage of approximately 15,000 people at 100 litres each.
While much attention has been placed on energy use and emissions, water consumption is often an overlooked sustainability concern. Liquid-based cooling (which includes water-based cooling systems) is increasingly chosen over air cooling due to its higher energy efficiency and lower carbon emissions. Currently, an estimated one in five data centres has already adopted liquid cooling technologies. However, this shift intensifies demand on already scarce water resources, especially in fast-growing and water-stressed cities like Jakarta and Manila.
As these urban centres grow into digital and AI hubs, it is important to manage technology-driven growth and the need to preserve vital resources for people, agriculture and ecosystems.
There are promising solutions that can help decouple digital growth from rising water consumption. Growing interest across the region in adopting more sustainable practices suggests the tide may be turning.
1. Closed-Loop and Recycled Water Cooling Systems
The data centre industry is increasingly adopting circular water solutions — approaches that minimise freshwater intake by creating closed-loop systems where water is continuously treated, recycled and reused rather than consumed once and discharged. Closed-loop cooling systems exemplify this circular approach. By implementing innovative water recycling infrastructure, rainwater harvesting and wastewater reclamation, data centres have demonstrated potential freshwater savings of 50-70% compared to conventional systems.
Take Singapore for example. Google’s latest data centre facilities in the city-state incorporate advanced self-contained water-based cooling mechanism that recirculates the coolant to maintain optimal temperatures required for operation, reducing potable water use. These closed-loop systems also feature continuous water-quality monitoring that triggers immediate alerts for any abnormalities, helping prevent leaks or excessive bleed-off.
Similarly, a Singaporean telecommunications and digital infrastructure provider, Singtel, is also developing new data centres with advanced cooling technologies. The company's upcoming DC Tuas facility in the city-state, slated for opening in 2026, will feature "next-generation cooling systems" that combines energy-efficient chilled water technology with water reuse technology, while providing the capabilities needed to meet enterprise demand for high-intensity compute and AI workloads.
Using reclaimed water for data centre cooling is also gaining traction across Southeast Asia. In Malaysia, AirTrunk, a data centre group, has partnered with Johor Special Water (JSW), a state-owned entity, to develop the country's largest recycled water supply scheme for data centres, treating unused wastewater for non-potable cooling use. In Thailand, another data centre provider, ST Telemedia Global Data Centres (STT GDC), is working with PTT Digital Solutions, the IT arm of state-owned energy giant PTT, to explore the use of cold energy released during the regasification of liquefied natural gas (LNG) as a sustainable cooling method for data centres.
These initiatives signal a growing commitment to climate resilient and circular infrastructure within data centre operations.
2. Desalination and Alternative Water Sources
In Asia, desalinated seawater is also being considered for data centre cooling in water-scarce regions. Thailand's Eastern Economic Corridor (EEC), encompassing Chonburi, Rayong and Chachoengsao provinces, forms a strategic economic zone aimed at driving industrial growth and innovation in the region. The Industrial Estate Authority of Thailand (IEAT), in collaboration with the EEC Office, is exploring seawater desalination as a drought-resistant solution for several high-tech industrial parks along the coast. While desalination involves higher upfront investment and energy consumption, it offers a reliable water supply independent of fluctuating rainfall and groundwater availability.
In other parts of the world with cooler climates, data centres have successfully integrated direct seawater cooling through heat exchangers or leveraged seawater for temperature regulation, reducing domestic water use. An example is Google's transformation of the former Summa paper mill into a data centre in Hamina, Finland, back in 2009. The facility utilises an existing seawater cooling system, benefitting from its coastal location on the Gulf of Finland.
In the Philippines, ST Telemedia Global Data Centres (STT GDC) is showcasing how alternative water solutions like rainwater harvesting can support sustainable data centre operations. At its upcoming 124 MW STT Fairview campus in Quezon City and its operational 1.2 MW facility in Makati, STT GDC has incorporated rainwater harvesting systems to supplement cooling needs. These systems are designed to capture and store monsoon rainfall, reducing dependence on potable water and easing pressure on municipal water supplies.
Aside from seawater cooling systems, another alternative is river cooling. A notable example is Interxion's system implemented in 2021 for its data centres in Marseille, France. These facilities are cooled by underground water diverted from a former mine through 3km of buried pipework, resulting in a commendable power usage effectiveness (PUE) of 1.2 (PUE refers to the ratio of the total power consumed by the data centre compared to the power that is delivered to the equipment). Rather than pumping the mine's wastewater into the river and out to sea as was traditionally done, it is piped to their data centre campus and used as a chilled water source, limiting cooling energy needs and improving facility efficiency.
By diversifying water sources, these facilities not only reduce pressure on local water supplies but also build resilience against future water shortages. This is a critical consideration as climate change exacerbates water stress across the region.
3. Efficiency Improvements Through Technology and Management
Beyond sourcing alternatives, the industry is also making strides in reducing the total amount of water used — moving beyond improving efficiency to reduce overall consumption through technological and operational improvements.
- Lowered operating temperatures through liquid cooling: Microsoft and other major operators have challenged common industry practices by running their data halls at approximately 27°C, compared to the conventional 20°C. This reduces reliance on energy-intensive ambient cooling, especially in tropical climates. This is often enabled by liquid cooling solutions such as direct-to-chip, rear-door heat exchangers, and immersion cooling. Together, these innovations lower cooling demands and water consumption without compromising equipment reliability. However, barriers include higher upfront capital costs and infrastructure complexity, particularly for retrofitting existing air-cooled facilities.
- Intelligent cooling systems: Facilities, such as Meta's AI-optimised data centres, implement intelligent systems that prioritise air cooling with the option of switching to water cooling based on ambient conditions. Such systems leverage cooler nights or seasonal changes to minimise water usage while maintaining optimal performance. Similarly, thermal management startup KoolLogix uses intelligent algorithms to dynamically adjust cooling setpoints and airflow rates at their data centres. The company also leverages an Internet of Things (IoT) platform for remote monitoring of heat removal systems with predictive fault detection capabilities.
- Advanced water treatment technologies: Filtration, ultraviolet radiation (UV) and chemical treatments prevent scaling and biological growth, allowing cooling towers to reuse water for more cycles before discharge. For example, Amazon Web Services (AWS) partnered with Hydroleap, a water treatment startup, in Singapore to pilot electro-oxidation technology that boosts cooling efficiency and cuts water use.
The impact of these innovations is becoming evident. In 2023, AWS reported a Water Usage Effectiveness (WUE) of 0.18 L/kWh, while Microsoft reported a WUE of 0.30 L/kWh as of 2024 — both below the US average of 0.36 L/kWh. This marks a substantial improvement in water efficiency, especially when compared to conventional setups that previously averaged close to a WUE of 1.8 L/kWh back in 2021.
Pushing Boundaries in Sustainability
It is important to recognise that transforming Asia's data centre landscape to advance digital growth alongside water resilience requires more than isolated technological solutions. Singapore's comprehensive strategy demonstrates how this transformation needs to be backed by a multifaceted approach across multiple stakeholders, combining strategic planning, collaboration and localised solutions.
- Policy and regulatory frameworks: Singapore's Green Data Centre Roadmap requires data centres with high water consumption (i.e., above 60,000m3 per year) to comply with the nation’s Public Utility Board (PUB)’s Mandatory Water Efficiency Management Practices. Similar approaches tailored to local conditions could accelerate adoption of water-conscious practices across emerging digital hubs.
- Industry-wide collaboration: Innovative collaborations are essential for developing and scaling shared infrastructure that can serve multiple data centres more efficiently than individual solutions. An example is the collaboration between the Infocomm Media Development Authority (IMDA) with global tech leaders like IBM and Microsoft to promote green software development. As the first Asian country to join the Green Software Foundation and the European Green Digital Coalition, Singapore is driving efforts to equip the digital ecosystem with tools and practices for designing energy-efficient applications, contributing to more sustainable cooling and reduced water consumption in data centres.
- Customised solutions for local conditions: Continued development of cooling technologies specifically designed for Southeast Asia's unique climate conditions remains critical. Launched in 2023, the Singapore’s Sustainable Tropical Data Centre Testbed (STDCT) is the world’s first full-scale facility focused on tropical data centre cooling. The collaboration between two local universities and 20 industry partners aims to reduce energy and water consumption by up to 40%. Supported under the Research, Innovation and Enterprise (RIE) 2025 plan, STDCT positions Singapore as a hub for green digital infrastructure innovation.
All in all, these solutions do more than reduce impact — they position Asia to lead in building infrastructure that is both high-performing and resource-conscious. By implementing innovations tailored to local conditions, the region's data centres are demonstrating that the rapid growth of the region’s digital economy need not come at the expense of precious water resources. This balance between technological advancement and environmental stewardship positions Asia's emerging digital hubs to thrive even as AI-driven demand continues to surge.
Infrastructure Asia remains committed to fostering solutions that enhance infrastructure resilience and sustainability. By connecting the right expertise and investment, we can collectively scale these innovations. This will enable cities to benefit from both digital economic growth and resource resilience as the region navigates the challenges of climate change and urbanisation in the decades ahead.
