By Reuters
August 28, 2026
Australian data centre developer NextDC reported rising water and energy consumption over the past year as growing demand for computing capacity helped the company deliver stronger-than-expected financial results.
The increase in resource consumption highlights growing concerns about the impact of the artificial intelligence boom on electricity and water resources.
NextDC’s Water Usage Effectiveness (WUE) ratio increased to 2.40 litres per kilowatt-hour in the year to June, up from 2.25 litres per kilowatt-hour in the previous year.
Its Power Usage Effectiveness (PUE) ratio, which measures the electricity required by a data centre for cooling and other overhead operations, also increased from 1.44 to 1.49.
Both indicators have deteriorated for three consecutive years.
Data Centre Expansion Drives Higher Water Consumption
NextDC attributed the increase in water consumption partly to the growth of its data centre portfolio and increased activity associated with operations, expansion and commissioning projects.
The company said some newly commissioned capacity had begun operating cooling systems before reaching full IT deployment.
NextDC also conducted extensive reconciliation and validation of its water-use data during the year. The process included investigations into isolated leaks, utility meter anomalies and differences between site records and utility records.
The findings demonstrate the importance of accurate water measurement and monitoring as data centre infrastructure continues to expand.
Growing Concerns Over Water and Energy Resources
Water and energy efficiency metrics are increasingly being monitored by governments, regulators and local communities as the global data centre industry expands.
A growing number of governments and cities are considering restrictions on new data centre developments amid concerns over electricity demand, water availability, land use and pressure on local infrastructure.
In Australia, Canberra is considering nationally consistent requirements governing data centres’ energy consumption, water use and location.
The Australian government has also proposed that new data centres build additional renewable energy generation rather than relying entirely on electricity from the existing grid.
NextDC Reports Strong Financial Performance
Despite growing concerns over resource consumption, NextDC reported strong financial results for the year ended June.
Revenue increased by 16%, while the company reported a profit of A$82.1 million, compared with a A$60.5 million loss in the previous year.
Underlying EBITDA increased 15% to A$248.8 million, exceeding average analyst expectations, according to Visible Alpha.
NextDC shares were up 3.3% by mid-session on Friday.
The company’s results reflect the continuing growth in demand for data centre capacity, while also highlighting the increasing importance of managing the water and energy resources required to support this expansion.
ELECALL Water and Cooling System Measurement Solutions
As data centres and industrial facilities place increasing demands on water and cooling infrastructure, reliable measurement and monitoring become essential.
ELECALL provides measurement solutions for applications involving water flow, pipeline pressure, water level and temperature monitoring. Its pressure gauges, pressure transmitters, flow meters, level transmitters, level switches and temperature measurement products can be applied in water treatment systems, cooling-water systems, storage tanks, pumping stations and industrial water management.
These measurement solutions can help operators monitor critical operating parameters, identify abnormal conditions and improve the reliability and efficiency of water and cooling systems.
Source: Reuters, August 28, 2026
Cart
So,I like it