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Clean Water: A Critical Success Factor for Data Centres and AI

 

 

Published by De.mem Ltd / Dr. Reuter Investor Relations on 27 July 2026

 

Water Becomes a Key Factor for Modern Data Centres

Artificial intelligence is driving the construction of new data centres worldwide to record levels.

Yet with rising computing power comes a challenge that is often underestimated: the cooling of servers.

An increasing number of operators are turning to water-based cooling systems to dissipate the enormous quantities of heat generated.

This is bringing into sharp focus a topic that has until now largely remained in the background, namely the quality of the water used and its critical role in the performance, efficiency and operational reliability of modern data centres.

 

Data Centres

Data centres are among the fastest growing infrastructure segments in the world.

Rising demand for cloud applications, streaming services and artificial intelligence (AI) is driving the operation of ever more powerful servers. These high-performance computing systems generate enormous quantities of heat that must be reliably dissipated to ensure uninterrupted operation.

While conventional air cooling was sufficient for many years, modern data centres are increasingly adopting water-based cooling systems. Water has a significantly higher heat capacity than air, enabling considerably more efficient cooling. For AI applications with high compute density in particular, direct-to-chip cooling systems and closed-loop water circuits are being deployed with growing frequency.

 

Why water quality determines efficiency and operational reliability

With the growing importance of water-based cooling systems, the quality of the water being used is coming under increasing scrutiny. Even minor contamination can have significant long-term consequences for the entire cooling infrastructure.

Minerals, limescale, suspended particles and dissolved metals can accumulate in pipes, heat exchangers and cooling plates. This impairs heat transfer, forces pumps to consume more energy and reduces cooling performance. In the worst case, corrosion or deposits arise that can cause costly repairs or unplanned outages.

Biological contaminants such as bacteria or biofilms present an additional hazard. These can colonise cooling systems and further impair their efficiency. As a result, operators are increasingly deploying multi-stage filtration and water treatment systems capable of reliably removing particles, microorganisms and dissolved substances from coolant water.

Sustainability becomes a competitive advantage

Beyond operational reliability, sustainability is playing an increasingly important role. Data centres are under mounting pressure to reduce their energy and water consumption. Advanced water treatment enables cooling water to be used for extended periods within closed-loop systems, significantly reducing fresh water demand.

High-quality filtration also enables a reduction in the chemical treatment of water and an extension of maintenance intervals. This not only lowers operating costs but also improves the environmental footprint of a data centre. In regions experiencing increasing water scarcity, this aspect is gaining particular significance.

New opportunities for water technology specialists

The worldwide expansion of digital infrastructure is simultaneously creating an attractive growth market for companies specialising in water filtration and industrial water treatment. The market calls for compact, energy-efficient systems that can be integrated into existing cooling concepts while meeting the most stringent purity requirements.

Membrane filtration, ultrafiltration and other advanced water treatment technologies in particular offer the potential to keep cooling circuits permanently clean and extend the service life of sensitive components. For operators of large data centres, water quality is increasingly becoming a strategic component of infrastructure management.

AI accelerates the trend

The rollout of high-performance AI data centres is likely to accelerate this trend further in the years ahead. Modern graphics processing units (GPUs) achieve power densities that can barely be managed economically with conventional air cooling. Liquid cooling is therefore widely regarded as the key technology for the next generation of high-performance data centres.

With each new expansion phase, the importance of reliable water treatment increases in parallel. The higher the power density of the hardware, the greater the demands on consistent cooling performance and maximum operational reliability.

Clean cooling water as the key to success

Water is thus emerging as an increasingly strategic resource for the operation of modern data centres. While digitalisation and the AI boom are continuously raising demand for powerful cooling systems, the quality of coolant water is becoming a decisive success factor. Efficient filtration protects equipment against deposits and corrosion, improves energy efficiency and contributes to more sustainable use of water resources. For data centre operators and providers of innovative water technologies alike, this represents a market whose importance is set to grow substantially in the years ahead.

De.mem — Positioned to Benefit from a Growing Future Market

It is precisely here that De.mem could benefit from a growing market of the future. The Australian company has deep experience in membrane filtration and industrial water treatment. Technologies such as ultrafiltration and reverse osmosis help to keep cooling water stable, prevent deposits and extend the service life of cooling systems.

De.mem also supplies specialty chemicals — including descaling agents and corrosion inhibitors — that are required for the ongoing operation of cooling circuits. Through its services business, De.mem is positioned to offer a comprehensive “one-stop-shop” solution for data centre operators, including the management of complete cooling circuits on behalf of its clients.

As data centres increasingly adopt closed, efficient water circuits, demand for corresponding water treatment is set to grow further. For De.mem, this represents an opportunity to transfer its expertise to a dynamically growing market.

De.mem CEO Andreas Kroell says: “Artificial intelligence is changing our world at a pace we could barely have imagined just a few years ago. What is often overlooked is that behind every AI application stands a powerful infrastructure — and that infrastructure needs clean water

We are convinced that water treatment will play a key role in the reliable operation of modern data centres. With our many years of experience in membrane filtration and industrial water treatment, we possess technologies that can create genuine added value in precisely this space. For us, this is an exciting future market with enormous potential.”