To ask His Majesty’s Government what plans they have (1) to measure, and (2) to regulate, the amount of (a) energy, and (b) water, consumed by data centres in the United Kingdom.
The Government are actively monitoring the data centre sector and published the first government estimate of data centre capacity on 1 May, including measures indicating energy use. As part of the Government’s commitment to reduce the use of the public water supply by 20% by 2037-38, Defra is examining how the efficiency of water use in data centres can be improved and the Environment Agency is working to improve the understanding of water and resilience needs.
I thank the Minister for his Answer. As he is aware, the Government have a dedicated energy council, but there is, as yet, no similar provision for water, no formal record of all the current data centres or the water they use and no public criteria for assessing new proposals such as the one in Culham in Oxfordshire. Does the Minister agree that water demand and supply in AI growth zones is a pressing problem? Do the Government have any plans to establish an AI and water task force and will it have representation from local communities?
The right reverend Prelate is right that water is a very large issue for data centres, as they consume large amounts of it. There are now technologies that reduce that use, such as recirculation of water. The AI growth zone proposals are required to set out water use—the volume of water required, the availability of that volume, the timeline of delivery and any wider infrastructure requirements or constraints—and they must work with the water provider to do that. Applications must confirm the above from the relevant water supplier and include any other associated impacts. A working group on sustainability has also been set up under the AI Energy Council.
My Lords, I am an officer of the All-Party Parliamentary Water Group and follow these issues very closely. Does the Minister share my concern that data centres are being built and expanded very close to major new housing developments in areas of deep water stress? What is the Government’s policy to ensure that households, as well as the data centres concerned, will have sufficient drinking water and sufficient evacuation of wastewater sewage?
The proposal process for AI growth zones, which is where the big data centres will be placed, started in early February and ended at the end of February. Over 50 proposals have come forward, each of which needs to deal specifically with water in relation to the local environment and local plans, and to plan that with the water company.
My Lords, demand is increasing faster than our policies for AI energy usage. AI is desperately power hungry, just at the pinch point where we are desperately trying to reach clean power by 2035 and our electricity demand is set to more than double by 2050. I call on the Government urgently to create an AI energy efficiency strategy, with the target of ensuring that AI usage and savings are better than carbon neutral before 2030.
The AI Energy Council is set up as a joint council between the Secretary of States for DESNZ and for DSIT. The noble Earl is right that, at the moment, around 2.5% of current total energy consumption is in data centres. The total amount of electricity use is due to go up from seven to 62 terawatt hours by 2050. In relation to the overall increase in requirement for electric vehicles and others, that is still about 10% of the total. However, it is a really important issue that the energy council is looking at and it leads to questions about the supply, and work on small module reactors may be part of the solution.
My Lords, would the Minister accept that, for both energy and water, there may be significant implications for the devolved Governments in Scotland and Wales, particularly with water needed in north-west England, the Midlands and the Thames area coming from water supplies from Wales? Can he undertake to keep in close touch with the Governments of Wales and Scotland on these matters?
The AI growth zones can be distributed right the way around the country. There is a very specific plan for each of those proposals, and they must be looked at with local engagement with the relevant authorities. I am sure there will be contact with the devolved Governments as part of that.
My Lords, I for one am very grateful to the right reverend Prelate for raising this issue. I think the House is only beginning to realise just how staggering big tech’s energy usage is. I understand that Google has doubled its CO2 emissions since 2020 and signed a contract with Commonwealth Fusion Systems for 200 megawatts of power, using a power plant that does not even exist yet. Can my noble friend say whether more can be done to enable big tech companies to reveal how much energy usage and water is going to be involved in the use of AI? We ought to have an honest discussion about the costs involved in both those areas.
I have given answers on the data centres. The broader question of AI has been looked at by a number of publications, including recently in the journal Nature, which looked at the overall energy consumption by AI and the overall potential energy reduction by the application of AI across industries. It turned out to be slightly net positive for energy. The noble Viscount is right that energy consumption is a major area to think about. There are new chips that are reducing energy consumption by a thousandfold and new approaches to machine learning that can reduce it. It is high on the list of concerns, and that is why the AI Energy Council has formed a sustainability working group.
My Lords, in the light of the National Preparedness Commission report and the energy requirement of the AI data centres, is the Minister satisfied that this is not undermining our energy systems’ resilience?