Water scarcity isn’t tomorrow’s problem – it’s already reshaping the UK’s industrial landscape. Chris Deadman, managing director, Alpheus, investigates.
With England projected to face a 5 billion litre a day shortfall for public water supplies by 2055, and a further 1 billion litre a day deficit for the wider economy, the water gap – the shortfall between available water resources and commercial demand – risks becoming a growing barrier to investment and productivity.
Across the UK, a widely diverse range industries are starting to feel the effects of tightening water availability.
From crop losses and stalled business expansion to soaring demand from data centres and clean energy projects, the pressures caused by increasing demand for water resources at a time of increasing water scarcity are reshaping investment plans and exposing vulnerabilities in supply chains.
One of the industries most exposed to this risk is the agri-food sector, which in 2023 accounted for a total estimated Gross Value Added (GVA) of £153.2bn or 6.2% of national GVA.
As the UK’s largest manufacturing industry, agri-food is particularly exposed to water-related disruption. From irrigation and livestock care to processing, cleaning, and hygiene, consistent water access underpins every stage of the supply chain. Even brief interruptions can lead to production delays, increased waste, and significant financial losses across both farming and food manufacturing.
In Suffolk’s Hartismere Water Resource Zone, one of the most water-stressed areas in England, local breweries are also facing major setbacks due to strict limits on water use.
Essex & Suffolk Water has stopped allowing any increases in water supply for businesses in the area until at least 2033, to protect already stretched resources. As a result, independent producers like Humber Doucy Brewery, Bruha Brewing, and Heart of Suffolk Distillery, all of whom have invested heavily in growth, are now unable to expand.
Innovation, it’s thirsty work
In addition to this, the proliferation of data centres across the UK is creating an emerging pressure point.
AI has been slated as a transformative technology, which could hold the key to turbocharging economic growth across the country. However, the data centres upon which it relies require vast volumes of water to operate and stay cool.
In some cases, single facilities are using up to 19 million litres of water a day, equivalent to the daily usage of tens of thousands of households. Nationally, data centres already consume an estimated 10 billion litres annually, a figure set to rise sharply with the growth of AI.
In areas already under water pressure, water companies have warned that unchecked expansion could undermine long-term water resilience. As AI becomes embedded across sectors, from healthcare to finance, it’s vital that digital transformation strategies account for their environmental footprint, particularly in terms of water.
Adding to this growing demand are hydrogen production centres, which was highlighted in April 2025 when the UK government shortlisted 27 low-carbon hydrogen projects for development.
At the heart of the UK’s hydrogen ambition stands the proposed Kintore Hydrogen Hub in Aberdeenshire, set to become Europe’s largest green hydrogen facility, with a planned capacity of up to 3 GW.
The project is expected to produce hundreds of thousands of tonnes of hydrogen annually, powered by offshore and onshore renewables. Yet its water demand is equally staggering: based on standard electrolysis ratios, the hub could require up to 15 billion litres of water per year, equivalent to the annual consumption of over 150,000 UK households.
While Kintore benefits from proximity to the River Don and existing energy infrastructure, its scale highlights a growing paradox, clean energy systems that depend on increasingly scarce water resources.
As the UK accelerates hydrogen deployment, projects like Kintore underscore the urgent need for integrated water strategies, including the use of non-potable sources, wastewater recycling, and closed-loop cooling systems to ensure sustainable delivery.
A wave of optimism?
There are however future UK infrastructure projects that present valuable opportunities to implement water reuse systems, such as Universal Studios’ plan to build its first European theme park in Bedfordshire.
The theme park is estimated to cover nearly 700 acres and expected to welcome 8.5 million visitors annually, so naturally attention is turning to the environmental demands of such a large-scale attraction.
While official details on water usage remain scarce, estimates suggest the site could require over 460,000 litres of water daily, raising important questions about infrastructure and sustainability.
However, leading European theme parks offer compelling models for sustainable water management. Disneyland Paris operates its own wastewater treatment facility and, by 2025, had reduced potable water use by 24% compared to 2012, saving approximately 300,000 m³ of drinking water annually through the reuse of treated water for irrigation, street cleaning, and cooling towers.
In Germany, EuropaPark’s Rulantica integrates high-efficiency water systems that recycle around 80% of wastewater, with up to 20% of daily freshwater needs met by on-site wells. Together, these examples illustrate how water reuse in the leisure sector is not only viable, but increasingly essential as environmental pressures mount.
Treading the tightrope between growth and sustainable water usage
As we can see across established and emerging sectors, water scarcity isn’t tomorrow’s problem. It’s already reshaping the UK’s industrial landscape. However, while this presents challenges for businesses pursuing growth, they are not insurmountable.
Through strategic investment and an approach which recognises the need to balance growth and water stewardship, it’s possible to plot a route for sustainable growth which can help boost the UK economy while preserving water resources.
The first step is efficiency: reducing water and energy use through smarter processes, redesign, and behavioural change before investing in new infrastructure. Businesses that plan early and work with utilities, regulators, and solution providers can identify reuse opportunities, integrate closed-loop systems, and avoid costly bottlenecks.
Policy support is also critical. Clear regulation, targeted funding, and coordinated infrastructure planning can accelerate investment in water reuse, particularly in industrial settings where demand is high. On-site treatment, internal recycling, and non-potable water sourcing not only reduce reliance on public supplies but also cut waste and operational costs.
In a future where every litre counts, sustainable water management is not optional, it’s a strategic imperative. Those businesses who can embrace this approach and build the resilience to thrive amid increasing water scarcity will find themselves best positioned to avoid falling foul of the water gap.
