· 8 min read
As climate pressures intensify and the world faces increasing water scarcity challenges, there has never been a greater need for sustainable water innovations. Fortunately, 2025 marked an exciting year for the development and adoption of technology-driven solutions for environmentally friendly water management.
Steve Harding explores how a wave of digital innovation is reshaping our approach to conservation across utilities, industry and in our homes.
Cracking water scarcity and leaks with AI
Leakage remains one of the most persistent challenges for UK water companies, accounting for billions of litres of lost water every day.
According to the water industry trade body Water UK, leaks present an ongoing headache for the UK water industry, with an estimated 19% of the water supply lost before it ever reaches consumers. More than three billion litres of treated drinking water are lost to leaks every day.
In the bathroom, one of the biggest culprits of water waste stems from long showers, with over 2 billion litres going down our drains each year.
However, thanks to advances in technology, AI-powered detection tools finally moved from a promising pilot scheme to a practical frontline solution.
A team at Wolverhampton University, along with its partners, are working on ‘Space Eye’, which uses the latest satellite technology for faster, more accurate and cost-effective monitoring.
The partnership was awarded a share of Ofwat’s £1.3m Innovation Fund to build, launch and operate a fleet of six Low Earth Orbit micro-satellites to help provide intelligent water infrastructure management. The satellites’ high-frequency imaging delivers data every six hours, providing greater detail for pinpointing leaks, using machine learning to improve accuracy and significantly lowering detection costs, compared with current satellite-based methods.
And in a UK pilot study which launched this year, behavioural prompts in hotel showers have reduced water use by over half, illustrating how gentle nudges can reshape habits.
Another standout innovation is the deployment of AI systems, which use sound to find leaks beneath the ground in London after Thames Water partnered with Fido and Microsoft to tackle the capital’s water waste.
Although the project launched in 2023, the target was set to reduce leaks by 20% by 2025. With 95% of leaks occurring underground, finding and fixing them presents a significant challenge.
On-the-ground teams place acoustic sensors throughout the underground pipe network. The sensors feed data back to the FIDO system to analyse the sound of leaks, flows, flushes or other types of vibrations.
Using AI, the water providers are now improving the follow-up investigation rate of water leaks by as much as a fifth.
Theme parks conserving previous resources
Some European theme parks offer compelling models for sustainable water management. Disneyland Paris operates its own wastewater treatment facility and, by 2025, had reduced potable water use by 24% compared to 2012, saving approximately 300,000 m³ of drinking water annually through the reuse of treated water for irrigation, street cleaning, and cooling towers.
And in Germany, EuropaPark’s Rulantica integrates high-efficiency water systems featuring filter technology, which can recycle around 80% of the wastewater. This means that only around 20% of the daily water requirements of Rulantica are covered by fresh water, which is supplied from two of the park’s deep wells and treated on site.
About 400 cubic metres of water is pumped into an underground tank overnight, which retains its warm temperature. Before the new day begins, the 80 metres long ‘wild river’ is refilled with the saved warm water.
With increased need and pressure to be more environmentally-conscious, these parks illustrate how reuse of this previous resource in the leisure sector is not only achievable, but increasingly essential.
Israel’s success story – from drought to abundance
Israel - a country that is frequently hit with drought and historically blighted by chronic water shortages- has become a nation that now produces 20% more water than it needs.
Historically, water demand from Israel’s rapidly growing population outpaced the supply and natural replenishment of potable water on such a large scale that by 2015, the gap between demand and available natural water supplies reached 1 billion cubic meters.
To address what seems like an impossible situation, Israel pioneered an unprecedented wealth of technological innovation and infrastructure to prevent the country from drying up.
In the midst of consecutive droughts throughout the 2000s, the Israel Water Authority launched awareness campaigns via TV, radio, and the Internet, urging the public to save water. They actively encouraged and brought about behavioural change to address the crisis.
One campaign was aimed at children through a series of cartoon TV programmes that taught the importance of saving water through simple means - helping to nurture generations of conscientious citizens.
Israeli engineers also realised that it wasn’t just about conserving available freshwater, but taking advantage of water sources previously considered unusable, such as treated municipal wastewater and stormwater.
By 2015, Israel had managed to treat and recycle 86% of its wastewater for agricultural operations, leading the world in wastewater reclamation. Through its treatment processes, recycled wastewater is cleaned to near drinking-quality levels before reaching crops to avoid contamination.
The goal is to recycle 95% of wastewater for agriculture, and by 2025, it had hit nearly 90%, preserving drinking water for the communities that need it.
Digital growth meets water scarcity
Across the Gulf, a region long defined by oil wealth, a new rush is unfolding. An explosion in artificial intelligence development and cloud infrastructure is placing an even greater strain on a resource in increasingly short supply: water.
Over the next five years, data centre capacity in the Gulf Cooperation Council area is expected to triple - from just over 1 gigawatt today to 3.3 GW by 2030 - according to business advisory firm FTI Consulting. All this comes at an environmental cost, with the centres straining already scarce water resources and consuming 15 billion litres in Saudi Arabia alone last year.
In an area where temperatures regularly exceed 45 degrees centigrade, the job of cooling thousands of servers requires vast amounts of water - often drawn from energy-intensive desalination plants.
Rather than being forced to choose between AI and sustainability, experts claim that the tools driving the data boom could help solve the problem.
One solution involves delivering a special coolant, similar to that used in car engines, directly to the data centre chips, using significantly less water and energy, rather than relying on vast air-conditioning systems.
In the North West of Saudi Arabia, despite some delays and revisions in the design of the ‘city of the future’, the NEOM project is pioneering 100% recycled water systems and plans to meet all its water needs through desalination using revolutionary and sustainable technology, powered fully by renewable energy. High-value chemicals and minerals for use in industry will be extracted from the brine left behind by the desalination process.
In order to protect the marine ecosystem, which can be adversely affected, it has adopted a Fully Integrated Resource Recovery Seawater Treatment (FIRRST) - a world first at this scale, with all wastewater recycled and used for irrigation.
Smart metering and the consumer shift
While industrial and utility-scale innovation attracts headlines, some of the most transformative change is happening within households. The UK’s ongoing rollout of smart water meters accelerated in 2025, bringing detailed, real-time usage data to millions more homes.
Smart meter installations picked up pace in September, with 214,000 installations taking place across Great Britain. This is an 11% increase from August’s quieter activity, bringing the cumulative installations total to over 26.7 million since ElectraLink's records of the smart meter rollout began. September saw a modest 3% increase in installations compared to the same month last year, which saw 208,000 installations, but according to a new report from the Environment Agency, more needs to be done.
The report examining the country's water usage warns that 'significant and sustained' effort is needed from both water companies and consumers to meet legally binding targets.
It claims improving water efficiency must become a national priority if England is to tackle escalating climate risks and deliver on a legally binding environmental target. It has examined the country's latest water usage data, which concludes current levels of water extraction from rivers, lakes and groundwater are "not sustainable."
The report calls on everyone, including water companies, regulators, businesses, and households, to play their part in tackling waste and using water more efficiently.
It also highlights the Environment Act's ambitious target to reduce the use of public water supply per person by 20% by the end of March 2038, as part of efforts to protect the environment and secure water supplies.
The report revealed that around a quarter of the reduction has been achieved to date, but warned that significant efforts are required to deliver on the target.
A technology-driven water future
As drought risks rise and environmental expectations grow, water technology is quickly becoming a cornerstone of national resilience. The innovations and developments of 2025 show that - with targeted investment and cross-sector collaboration - the UK can modernise its water systems in ways that protect communities, strengthen ecosystems and make every drop count. The challenge now is scaling these tools quickly enough, both in the UK and further afield, to meet the demands of a climate-stressed future.
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