AWS data centre to use recycled water in Melbourne

Greater Western Water and Amazon Web Services have agreed to supply a new AWS data centre in western Melbourne with recycled water from the Melton Recycled Water Plant. The connection is expected to be the first of its kind for a data centre in Victoria.

The recycled water will be used to cool the facility, which AWS is preparing to build in Melbourne's west. The arrangement will connect the site to non-potable water from the start of operations, marking a first for both Victoria and AWS in Australia.

The announcement comes as pressure grows on utilities, governments and large industrial water users to reduce demand for drinking water in fast-growing regions. Western Melbourne has been one of the country's fastest-expanding corridors, while water planners are also weighing the effects of a drying climate on future supply.

The agreement follows the release of the Victorian Government's Industry Water Connection Guide, intended to help major water users work more closely with water corporations. It also outlines how the state's existing regulatory and water planning framework applies to industrial connections.

Cameron FitzGerald, Managing Director, Greater Western Water, said the project reflected a broader need to plan for the water demands of data centres as the region grows.

"We're thrilled to announce, alongside AWS, that the Melton Recycled Water Plant is expected to be the first in Victoria to supply a data centre with recycled water," FitzGerald said.

"Planning for the water needs of data centres is part of Greater Western Water's responsibility to deliver reliable, affordable water services for its customers now and into the future, especially as the region grows and the climate dries.

"We know data centres and large industrial water users are increasingly looking for innovative ways to reduce their environmental footprint, and we're keen to see more of them follow AWS's lead by working with us to connect to recycled water.

"Where recycled water isn't feasible for a direct connection, we are looking at ways to support large users in contributing to recycled water projects elsewhere in the catchment."

AWS said the direct connection would help reduce demand on the drinking water network by shifting cooling needs to recycled supply. Data centres require substantial water or electricity for cooling, and operators globally have faced growing scrutiny over their use of local resources as artificial intelligence and cloud demand drive expansion.

Matt O'Rourke, Head of Infrastructure and Energy Policy, Australia and New Zealand, AWS, said the company had worked with Greater Western Water on the arrangement.

"Connecting a data centre to recycled water from day one of operations is a significant first for Victoria and AWS in Australia. Working closely with Greater Western Water to deliver recycled water to our new data centre in western Melbourne will help preserve millions of litres of drinking water annually for local communities," O'Rourke said.

"By investing in the infrastructure to connect our data centre facility to the Melton Recycled Water Plant, we're further demonstrating our commitment to water stewardship in Australia and our global water-positive goal to return more water than we use in the communities where we operate.

"We will continue to work closely with Greater Western Water to identify opportunities to partner on water replenishment projects in the community as part of AWS's commitment to return more water to the community and the environment than it uses by 2030."

Sector response

Industry body Data Centres Australia welcomed the arrangement, saying it could provide a model for other projects. The sector has faced increasing pressure to show how new facilities will secure power and water supplies without adding strain to local infrastructure.

"Data Centres Australia is pleased to see AWS and Greater Western Water working together to find a recycled water solution for the AWS data centre and congratulates them on this milestone. Australia has the opportunity to become the world's most sustainable data centre sector, but that will require all parts of the ecosystem to work in partnership like this. Many of our members have been pushing to move to non-potable water sources, so it is pleasing to see this breakthrough in Victoria, and we hope it is the first of many such announcements," said Belinda Dennett, Chief Executive Officer, Data Centres Australia.

Plant upgrades

The water supply deal comes as Greater Western Water prepares the second phase of upgrades at the Melton plant. Contractor Guidera O'Connor is due to begin construction on a AUD $70 million project that will lift the plant's capacity and improve recycled water quality.

Those works are intended to expand the utility's ability to supply recycled water across one of Australia's fastest-growing areas. The project points to rising industrial demand for alternative water sources as more large facilities seek options beyond potable supply.

For AWS, the Melton connection adds to broader efforts to manage water use in the communities where it operates. For Greater Western Water, it offers an early test of how Victoria's new guidance on industrial water connections may translate into practical agreements with large commercial users.