The UK's water industry has warned that Britain lacks sufficient water supplies to support the government's planned expansion of data centres, arguing that Labour's AI growth strategy is "fatally flawed" because it fails to account for water usage. Industry figures say the policy does not "make a single mention" of water, despite data centres requiring vast quantities for cooling servers, raising concerns that the push to position the UK as an AI leader could clash with existing pressures on the nation's water resources.

The warning comes as the government pursues an aggressive AI infrastructure agenda, encouraging investment in new data centres to power the technology sector, while water companies and industry bodies highlight that supply networks are already under strain from population growth, ageing infrastructure and climate pressures. Critics argue that without addressing water consumption directly in planning, new data centre developments risk exacerbating shortages or facing local resistance, undermining the feasibility of Labour's broader AI growth ambitions.