Australian utilities are leading the adoption of digital water solutions that integrate data, automation, and insights to deliver efficiency, reliability, and long-term water security.
From Perth to Melbourne, Australian utilities are embracing digital water solutions to transform the way water is managed, measured and delivered. The approach is redefining operational efficiency by blending advanced analytics, customer insights, and sustainable technology to meet the challenges of a changing climate.
The Innovation, Technology and Digital Solutions session at the AWA/IWA Water Efficiency Conference 2025 showcased this transformation through four distinct lenses, from smart metering and behavioural research to desalination efficiency and industrial water reuse, illustrating how utilities are using digital intelligence to optimise performance and protect supply.
Understanding the customer through data
Western Australia’s Water Corporation has spent six years re-examining how residents use water. Its H2OME Residential Water Use Study combined digital meters, satellite imaging and behavioural data to map household consumption patterns across the Perth-Peel region.
Damien Postma, Manager of Demand Delivery, said the study provided a level of detail not previously seen.
“We used smart meters, water diaries and behavioural studies to match data across all housing types,” Postma said. “It let us see what was happening in real time: when people showered, irrigated, or even when leaks occurred.”
The findings were striking. Leaks accounted for around 4 per cent of total household water use, or nearly 19 gigalitres per year, which is almost half the output of a Perth desalination plant. Outdoor irrigation remained the largest single end-use at 28 per cent, followed by showers at 24 per cent.
“These insights mean we can design more targeted water efficiency programs,” Postma said. “We can now tell customers how their water use compares with others in similar homes and identify where the biggest savings are.”
Digital metering delivers business value
In Victoria, South East Water has been rolling out more than 700,000 digital meters as part of its transition to a fully digital utility. Clement Low, an economist at Frontier Economics, helped develop the business case that supported the program’s regulatory approval.
“Digital meters automatically send readings to South East Water every day, giving customers near real-time data and helping the utility manage leaks and demand,” Low said. “The business case had to prove that this investment would deliver value for both customers and society.”
The analysis estimated that the program could reduce total water demand by up to 1.5 per cent each year through early leak detection and behavioural change, delaying the need for new desalination capacity.
“Even a one-year deferral of a major supply project saves billions,” Low said.
The regulator accepted the business case in 2023, approving $203 million in capital investment. Although the rollout has been slower than planned, early results show higher-than-expected water savings.
“It proves that conservative assumptions still delivered positive outcomes,” Low said.
Data centres drive new water thinking
While utilities are digitising customer networks, industries are also seeking smarter ways to balance water and energy. Mitchell Dixon from Ramboll outlined how global data-centre operators are rethinking water use amid the rapid expansion of artificial intelligence infrastructure.
“Energy has long been the focus for data centres, but water is now equally critical,” Dixon said. “They need secure supplies, alternative sources and water-efficient cooling systems. It’s not just an environmental issue, it’s an operational one.”
Ramboll’s research found that large hyperscale data centres can consume thousands of megalitres of water each year for cooling, prompting clients to adopt reclaimed water, hybrid cooling and rainwater harvesting.
“Circular water thinking is key,” Dixon said. “Recycling cooling water and integrating reuse into site design is how we ensure sustainability.”
He noted that utilities must move faster to support industry growth.
“Data centres are expanding quicker than water infrastructure can keep up,” he said. “Our challenge as an industry is to match their pace while protecting community supply.”
Desalination efficiency through innovation
At the process level, innovation in desalination is also reshaping efficiency outcomes. John Ferguson, Regional Business Manager at Danfoss, demonstrated how next-generation high-pressure pumps and energy recovery devices are reducing energy use in seawater reverse-osmosis systems.
“Positive-displacement axial piston pumps can deliver up to 92 per cent efficiency,” Ferguson said. “When combined with isobaric energy recovery devices, plants can achieve energy savings of up to 30 per cent compared with traditional centrifugal pumps.”
A recent project in Spain achieved a world record specific energy consumption of 1.86 kilowatt-hours per cubic metre.
“That means more water produced at lower cost and with less carbon,” Ferguson said. “The future of desalination is not new membranes or chemistry, it’s smarter engineering.”
Towards an integrated digital water future
From domestic consumption studies to high-pressure pump design, these projects demonstrate how Australia’s utilities and partners are leveraging digital water solutions to enhance resilience and transparency.
By combining data, technology, and human insight, the sector is demonstrating that smarter systems can deliver not only operational savings but also stronger relationships with customers, the industry, and the environment. The next decade of water efficiency will be defined not by scarcity, but by intelligence.