Large data centres should be cooled with "treated sewage effluent" rather than drinking water, according to a water company.
Anglian Water's head of planning said they should be located near water recycling plants, so they could more easily access supplies.
Giant data centres are needed to power artificial intelligence (AI) - but require water to stop them overheating.
The Environment Agency has highlighted a growing demand for water from data centres and some in the water industry fear the growth of AI could lead to water shortages.
A spokesperson from the Data Centre Alliance disputed that they needed large volumes of water for cooling, but did not object to using treated sewage.
