In May, Brussels launched a public consultation inviting stakeholders across the water sector to collaborate on advancing digital transformation within the industry. The initiative focuses on several key areas, including the deployment of smart meters and sensors to improve water management across the EU.

Digital transformation is rapidly moving from ambition to reality. Last year, the European Investment Bank announced a €15bn ($17.3bn) investment programme for water-related projects between 2025 and 2027. The EU has designated water as a strategic infrastructure category and identified it as one of the five priorities for the reallocation of €34.6bn ($39.9bn) in cohesion policy funds. To date, €3.1bn ($3.6bn) has been reallocated to support water resilience projects in 16 member states. Meanwhile, the Spanish government estimates that investment generated through the PERTE programme now exceeds €1.2bn ($1.4bn).

For decades, water networks have largely been managed reactively, responding to issues only after they occur. Today, digital transformation and advanced data analytics provide utilities with the information needed to understand consumption patterns, water demand behaviour and changes in operational performance.

“Utilities are already moving towards a fundamental principle: you cannot manage what you cannot measure. Smart metering represents not only a new generation of devices, but also the clearest example of the strategic value of data and digital transformation,” said Humberto Morales, head of the drinking water supply division at Xylem Vue.

According to Morales, water meters have evolved far beyond their traditional role as billing devices. “Water meters have long ceased to be merely a billing tool. Today, they play a strategic role in day-to-day management, providing real-time visibility, supporting predictive demand forecasting and enabling the early detection of anomalies,” he said.

The shift from four or six meter readings per year to 8,760 hourly readings represents a fundamental change in water management. According to Xylem Vue, continuous real-time information allows operators to anticipate issues and adopt a more proactive and efficient approach that is better equipped to address the emerging challenges facing the water sector.

These challenges are “not only technological, but also organisational and generational,” said Jaime Barba, chief executive officer of Idrica and general manager of Xylem Vue.

Advancing digital transformation, one of the objectives highlighted by Brussels, will enable utilities to better understand what their networks are communicating.

Traditionally, water networks have served solely to transport water from treatment facilities to end users. Today, however, these systems also carry valuable information.

Every smart meter and pressure sensor installed within the network contributes to a more comprehensive understanding of system performance. Water networks are no longer simply physical infrastructure; they have become important sources of operational knowledge.

This knowledge is increasingly essential as water systems face growing climate uncertainty, regulatory pressures and the challenges associated with ageing infrastructure.

The year ahead is expected to play a critical role in advancing this transformation. The European consultation has already placed the emphasis where it belongs: on the value of data.

Organisations that recognise data as a strategic asset will be better positioned to navigate increasingly complex operating environments and make more informed decisions. “Those that will make the difference will not only be those with more information, but those capable of turning that information into better decisions and more effective operations,” Morales said.