Water and energy, together, underpin Europe’s economic future. Energy powers water treatment, distribution, and reuse. Water is essential for energy production and power plant cooling. Energy efficiency and water security go hand in hand. Progress in one strengthens the other.

Why Water Resilience Is Strategic

As Europe accelerates digitalization and clean technologies, water resilience becomes a strategic imperative. High-growth sectors such as semiconductor manufacturing, battery production, and data centers — all critical to Europe’s competitiveness — depend on reliable access to high-quality water. These industries are driving a sharp rise in demand at a time of growing resource challenges: today, 20% of Europe’s territory and 30% of its population face water stress.  The EU’s Water Resilience Strategy is an important milestone towards water resilience, but implementation will define success.

Putting Policy into Practice

The next phase of Europe’s future depends on decisive action on the following priorities:

• Accelerating the digitalization of water infrastructure through the upcoming EU Digital Water Action Plan
• Ensuring EU funds for water are fully utilized by supporting local implementation
• Treating water as a strategic investment, not a cost
• Anchoring water resilience in EU policy – from funding to regulation

These actions will strengthen Europe’s economic growth and strategic autonomy. They will enable cities and communities across the continent to fix aging infrastructure, reduce water losses and environmental spills, recycle and reuse more water, and digitalize pipe networks to manage water more efficiently.

Building Europe’s Water-Energy Future

Water efficiency is a high-return investment. Every euro pays back through lower energy use, reduced emissions, and enhanced water security.

The solutions exist today. What’s needed is scale and collaboration to turn existing technologies into real-world impact. Together — policymakers, industry leaders, and technology partners — we can build a water-secure future that powers economies, protects communities, and strengthens Europe’s resilience and competitiveness.

Hayati Yarkadas
EVP and President, Water Infrastructure
Xylem