AWS and Greater Western Water (GWW) say a new data centre in Melbourne’s west will become the first facility in Victoria to connect directly to a recycled water supply. The project will see GWW Melton Recycled Water Plant supply recycled water to a new AWS data centre currently under development in western Melbourne. The arrangement comes amid increasing scrutiny of water use by data centres in Australia as governments, utilities and operators grapple with how to support growing digital infrastructure demand while protecting water resources.
GWW said the project follows the release of the Victorian Government’s Industry Water Connection Guide, which aims to encourage large industrial users to work more closely with water authorities on alternative water sources.
“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,” said GWW managing director Cameron FitzGerald. “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.”
The utility said the arrangement would help preserve potable water supplies while supporting one of Australia’s fastest-growing regions. “We know data centres and large industrial users of water are increasingly looking for innovative ways to reduce their environmental footprint, and we’re keen to see more of them follow AWS’s lead in working with us to get connected to recycled water,” FitzGerald added.
Water moves up the data centre agenda
The announcement comes as water consumption is emerging as a key issue for the Australian data centre sector, particularly as AI workloads drive higher rack densities and increased cooling requirements. While energy consumption has dominated policy discussions around data centres in Australia over the past year, governments and utilities are increasingly examining water use as operators expand their footprints.
AWS said the Melbourne project would connect to recycled water from day one of operations. “Connecting a data centre to recycled water from day one of operations is a significant first for Victoria and AWS in Australia,” said Matt O’Rourke, AWS head of infrastructure and energy policy for Australia and New Zealand.
“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,” he added.
The company said the project forms part of its broader water stewardship strategy and its global goal of becoming water positive by 2030. According to AWS, the company has committed to returning more water to communities than it consumes and has announced more than 50 water replenishment projects globally that are expected to return 5.8 billion gallons of water annually once fully implemented. AWS says it currently operates 26 facilities globally using 100 percent reclaimed water, with a further 130 sites contracted to do so.
The company also claims its data centres used 0.12 litres of water per kilowatt-hour globally in 2025, compared with an industry average of 0.84 litres per kilowatt-hour, although methodologies for measuring and reporting water efficiency vary across operators.
Capacity expansion at Melton
The AWS project coincides with a broader expansion of recycled water infrastructure in Melbourne’s west. GWW is preparing to begin the second stage of a AUD 70 million upgrade of the Melton Recycled Water Plant, with contractor Guidera O’Connor expected to commence construction next year. The utility said the upgrade would increase the facility’s capacity and improve recycled water quality, helping support future growth across the region.
For AWS, the project represents one of the first examples in Australia of a hyperscale data centre integrating recycled water into its cooling strategy from the outset.