AWS says one Melbourne data centre will be the first in Victoria to use recycled water for cooling

Amazon Web Services says one of its western Melbourne data centres will be the first in Victoria to use recycled water for cooling, in a move the company says will reduce demand on drinking-water supplies.

The announcement comes as data-centre water use faces growing scrutiny in Australia, where operators are under pressure to rely on non-potable water where possible and to explain more clearly how much water their facilities use.

Recycled-water pipeline

AWS said recycled water from the Melton sewage plant will be piped directly to the site. Construction on the connection is due to begin next year.

Matt O'Rourke, AWS Australia and New Zealand head of infrastructure and energy, said the change would help preserve millions of litres of drinking water for local communities each year.

He also described the project as a first for Victoria and a first for AWS in Australia, because the site is being connected to recycled water from day one.

Wider water-use pressure

The company said it already has 26 data centres globally connected to recycled water.

AWS's Melbourne facilities reportedly rely on outside air cooling most of the time and use water-based cooling during hotter periods, but the broader expansion of cloud and AI infrastructure has intensified debate over electricity demand, water consumption and local infrastructure impacts.

Federal authorities have been pushing operators to use non-potable water where possible and to report water use more transparently.

What remains unclear

AWS has not publicly identified the specific western Melbourne site involved. It is also not yet clear what approvals remain in place for the pipeline, or when the connection will be commissioned.

For now, the announcement adds another data point to Victoria's fast-growing data-centre sector, and to the pressure on operators to show they can scale without adding pressure to drinking-water systems.