ACTION 1 Advance resilient and restorative water use 1.1 Review sites for water stress –Review site locations for water stress levels (current and future) and work with local and regional officials to assess competition across the entire water supply to ensure availability. –Before new developments, water stress levels can be assessed using public sources such as the World Resources Institute Water Risk Atlas or by working with government environmental bodies. This process ensures that new developments limit undue added stress on local water infrastructure. Example: When Google assessed a potential build in Arizona in 2023, they adjusted the design to use air cooling to reduce impact on the local water supply.67 The company has developed a Water Risk Framework to guide some of these decisions. 1.2 Design and operate for efficiency –Pre-construction, companies can design buildings and processes for water efficiency. –During operation, they can update existing processes identified as priority areas to improve inefficiencies and reduce water use. –For energy-intensive processes such as cooling, companies can consider the trade-offs with water, as discussed in Chapter 2.2. 1.3 Assess complete water footprint –Implement a standard, such as ISO 46001, to conduct a full accounting of water use in operations and key supply chain components, such as embedded water in energy generation, to identify priority areas. –The World Resources Institute has a guide available to assist in calculating water use from purchased electricity. Fewer than one- third of data centre operators actively track their water usage metrics today.68 –For direct operations, implementing a monitoring system will allow companies to identify issues such as leaks or poorly optimized processes and rectify them. The solution can be as simple as replacing a component or sealing a leak. Example: HCLTech has developed a system called AquaSphere to monitor facility water usage and provide insights on where and how water is used.69 Fewer than one-third of data centre operators actively track their water usage metrics today.Priority actions for water use Action Leadership Feasibility Mitigation hierarchy Sub-sector 1.1Review site locations for water stress levels and work with local and regional officials to ensure availability.Foundational High Avoid/reduce 1.2Pre-construction, design buildings and processes for water efficiency. During operations, update existing processes to improve inefficiencies and reduce water use.Foundational High Avoid/reduce 1.3Implement a standard (e.g. ISO 46001) to conduct a full accounting of water use in operations and key supply chain components.Leading High Avoid/reduce 1.4Prioritize using non-potable water, where feasible, and utilize closed- loop water systems for both server and facility cooling, with onsite water purification to minimize net freshwater withdrawals.Leading High Avoid/reduce 1.5Champion and support projects to monitor and restore local aquifers and watersheds.Aspirational High Restore/compensate Semiconductors Data centres Hardware Nature Positive: Role of the Technology Sector 30

Nature Positive Role of the Technology Sector 2025