From the Editor’s Desk |
Rivers of compute
I
’ve always thought there was something reassuring about the steady pulse of a powerhouse – turbines turning, water flowing, projects quietly doing their work. It’s dependable, proven, and, to many, a source of quiet pride. So, it’s curious to see this old reliability suddenly collide with one of the
fastest-moving phenomena of our time: data centres and the explosion of compute demand driven by AI. Over the past year, we’ve seen a flurry of major announcements for hyperscale campuses, AI clusters, and tech giants signing long-term renewable contracts. And increasingly, those deals have one thing in common: hydropower. The same attributes that have made hydro the backbone of clean electricity systems for decades – reliability, flexibility, and low-carbon credentials – are exactly what data- centre developers now crave. For all the excitement around wind and solar, they
can’t provide the kind of firm capacity that a hyperscale operator needs. Data centres want certainty: stable prices, guaranteed supply, and long-term visibility. Hydro offers that. And when paired with storage or flexible operation, it offers something else – the ability to help balance the grid while enabling the digital economy to grow without blowing past carbon targets. We’re already seeing how this plays out in practice. In Norway, for example, companies like Green Mountain run data campuses on 100% renewable hydropower and even reuse waste heat for aquaculture, a simple but clever way to turn what was once an inefficiency into a community benefit. Hydro-Québec is doing similar things on the other side of the Atlantic, becoming a magnet for data-centre investment by leveraging its vast existing hydro fleet. For hydro operators, this new wave of digital demand could offer precisely the sort of long-term, creditworthy offtake that justifies upgrades or even new pumped storage developments. It could also pull in private investment where public funding is scarce, allowing long-delayed modernisation to move ahead. Equally interesting is the potential for flexibility partnerships. Many data-centre workloads are, in fact, moveable, non-time-critical computing that can shift to match renewable availability. Combine that with hydro’s rapid response and you’ve got a system service that benefits both sides: lower costs for the tech firms, and new revenue for operators through ancillary markets.
4 | November 2025 |
www.waterpowermagazine.com
Of course, it won’t all be smooth water. In Ireland and parts of Scandinavia, communities have raised concerns about data-centre growth outpacing grid capacity. And new hydro or pumped storage projects still face environmental and social scrutiny. But that’s all the more reason for our industry to lead the conversation, to show that hydro can underpin a balanced, digital, low-carbon future. Already, the numbers tell a compelling story.
According to the International Energy Agency, global data-centre electricity demand could double by 2026, reaching more than 1,000TWh annually. At the same time, the International Hydropower Association estimates that more than 60% of the world’s existing hydro capacity is over 30 years old and ripe for modernisation. Bringing these two realities together isn’t just convenient; it’s strategic. By upgrading turbines, digital controls, and storage capabilities, operators can squeeze more clean megawatts from existing assets while meeting the round-the-clock reliability that AI-driven computing requires. Some utilities are already making that pivot. In the US Pacific Northwest, the Bonneville Power Administration has begun exploring new grid services tailored to flexible data loads. In Canada, BC Hydro is studying how surplus capacity from legacy dams could support regional tech growth without new fossil generation. And in Australia, Snowy Hydro’s pumped storage expansion is being closely watched as a model for how dispatchable renewables can serve high-intensity digital infrastructure. The message is clear: hydropower isn’t a relic of the
last century – it’s an anchor for the next one. Where electrons meet algorithms, water might just be the most valuable resource of all.
Carrieann Stocks
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