WITH rising demand for data centres driven by artificial intelligence and e-governance platforms, the challenge lies in balancing their water needs with that of households, agriculture and industries.
“To avoid building data centres, to me, should not be an option because if you do not have your own data centres, you will rely on other countries. Then there will be cybersecurity issues,” said Asiawater 2026 advisor Datuk Teo Yen Hua.
At a panel discussion during the Asiawater Conference 2026, industry experts concurred that careful planning and strategic water management methods are essential to ensure data centre growth does not strain existing water supplies.
Baguio Water District general manager Salvador M. Royeca said: “Data centres behave differently from typical customers. They require a 24/7 water supply, not just during peak hours. They also use large volumes of water and have a very low tolerance for interruptions.”
“Continuous high-volume users may compete with essential domestic demand, especially during supply deficits,” he said.
He added that this puts a strain on the Philippines’ existing water supply systems, which are designed for domestic and commercial demand.
The most important step in securing an adequate water supply for all sectors, including data centres, is demand management, he said.
“We need to control demand early. We don’t need to wait until the supply is strained.”
Royeca said water operators need to establish alternative water sources, such as rainwater harvesting systems that can serve as parallel supply sources for use during peak periods.
He added that another option is to utilise water from other sectors, such as surplus from the irrigation department.
“Since it was noted that there is an excess water supply coming from the National Irrigation Administration in the Philippines, the government is trying to distribute the surplus to the nation’s water districts in order to cope with the increasing demand, especially from industries like data centres,” he said.
Teo highlighted that location planning is key to ensuring the sustainability of a country’s water supply when it comes to data centres.
“It is good to plan early and to locate data centres in water-rich areas, where water resources are abundant.
“That means you will not have the issue of depriving or disrupting the normal water supply of the public,” he said.
He added that another method to ensure data centres do not affect the public’s potable water supply is to reuse effluent from sewage treatment plants.
According to Thai Water Works Association representative Sumetee Charoenwongmit, water supply planning for data centres can be carried out in stages.
“The first step, in the short term, is to manage the situation by purchasing water supply from private companies to serve data centres.
“In the medium term, we may have to look into wastewater treatment, with some private sector players investing in treatment facilities to supply water for data centres.
“In the long term, we have to review our projects in the area and adjust supply planning to also accommodate demand from data centres.”
Sumetee added that at present, priority must be given to existing customers, namely households, the public sector and the industrial sector.
