Rethinking Industrial Water Use
How might we help build resilience for industrial users through insights, innovations and technologies?
Water is a fundamental input and output of industrial activity, yet it has historically been treated as a low-cost and abundant resource. Sectors including food and beverage, manufacturing, hospitality, chemicals and energy generation all rely heavily on water to operate. According to MOSL, non-household customers (businesses) account for 30% of public water demand in the UK. Additionally, over 50% of businesses in England say their water intensity has increased in the last five years with over a third forecasting increased water usage in the coming years. For decades, falling block tariffs in the UK have rewarded heavy consumption, while the absence of robust data and incentive structures has made efficiency an exception rather than a norm.
At the same time, pressures on water resources are mounting due to climate change, ageing infrastructure and rising demand. Government forecasts suggest England could face a shortfall of 5 billion litres per day by 2055 if current trends continue and no action is taken. In other words, industrial water use is set to rise as supply pressure and sustainability concerns intensify. Industries that depend on reliable access to water are increasingly exposed to operational, finance and regulatory risk.
The explosive growth of data centres and AI infrastructure has been a catalyst bringing this conversation on the sustainability of industrial water use and water stewardship into sharp focus. Data centre facilities require significant volumes of water for cooling and operating, currently drawn from fresh mains (potable) water supplies. Beyond cooling, the electricity needed to power AI and data centres is itself highly water-intensive, carrying a substantial embedded water footprint that is considered comparable to or even greater than direct cooling.
The policy and regulatory landscape is starting to undergo major reforms. Ofwat is phasing out falling block tariffs during AMP8, meaning large industrial water users will face rising bills. Likewise, tighter environmental regulation is expected across the board and industries are facing growing pressure to improve their efficiency, reduce consumption and meet ambitious sustainability targets, while maintaining operational resilience and economic competitiveness.
These strategic risks, though, also present strategic opportunities for innovation. Smarter monitoring, reuse and greywater recycling technologies, circular economy approaches, rainwater harvesting, leakage reduction, water trading mechanisms and integrated water-energy solutions, among others, all have the potential to transform industrial water use and lay the groundwork for a more resilient future. Unlocking these opportunities will require stronger collaboration between industrial users, water companies, regulators, technology providers, the energy sector and wider supply chain.
British Water - as the home of the UK water and wastewater supply chain - is launching an Industrial Forum later this year to better understand and address the needs and challenges facing industrial water users head-on. The Sprint at the Northumbrian Innovation Festival is the founding moment for that forum and your chance to shape its direction.
Urgent action is needed to ensure that:
i) Industrial water users are better prepared for increasing water stress, tighter regulation, higher costs and operational pressures.
ii) Policy and regulation frameworks are fit-for-purpose to support innovation, efficiency and long-term resilience across industries.
iii) Opportunities around reuse, circular economy approaches and integrated water-energy solutions are accelerated and scaled.
iv) Collaboration between industrial users, water companies, regulators, technology providers and the supply chain is strengthened to enable practical and commercially viable solutions.
v) The future British Water Industrial Forum is shaped by the real needs, priorities and experiences of industrial water users.
We are inviting industrial users and experts, data centre operators, technology providers, equipment suppliers, innovators, SMEs, academia, policymakers, utilities and the wider supply chain to come together and play a role in shaping the British Water Industrial Forum and rethink industrial water use.
Day 1 (Monday) – Scene setting
Following the grand opening of the 2026 Innovation Festival, we will introduce the sprint, the team and begin unpacking the challenges facing industrial water users. Discussions will explore the scale of industrial water demand, sector-specific pressure points and how factors such as climate change, regulation, growing demand and calls for sustainability are driving industrial users to reimagine their water use and the resilience of their systems.
Day 2 (Tuesday) – Policy & Regulation
Building on the insights from Day 1 we will shift from context to action by first examining the policy and regulatory landscape. Conversations will focus on what future regulation should look like and how fit-for-purpose frameworks can better support industry, while also encouraging innovation and sustainable water management. Moreover, we will identify what industrial users most need from policymakers as increasingly stringent regulation impact operations.
Day 3 (Wednesday) – Technology, Innovation and Cross-Sector Solutions
Continuing the focus on action, this day will explore how technologies and innovation can address challenges raised so far and transform industrial water use. Topics could include smart metering, efficiency technologies, water reuse and circular economy approaches, among others. There will also be a focus on the water-energy nexus and optimising cross-sector knowledge and partnerships.
Day 4 (Thursday) – Synthesis and Shaping the Industrial Forum
Bringing it all together, our final day will focus on synthesising the key themes and identifying priorities for the new British Water Industrial Forum. Collectively, we will explore what the Forum’s objectives, scope, structure and areas of focus should be and next steps. A white paper will be generated following the sprint, capturing the key insights and outputs for the UK market and beyond.
