How Spain Is Using AI and IoT to Transform Water Management Amid Rising Droughts

Spain is in the midst of a sweeping transformation in how it manages one of its most precious resources: water. Researchers from the University of Malaga’s WEARE Research Group and the French Research Agency’s Water JPI Secretariat have traced how digitalisation is reshaping both policy and practice in a country where droughts, erratic rainfall, and climate change already make water a scarce and fragile commodity. This shift, described as the sector’s “Fourth Digital Revolution,” is not simply about swapping out manual methods for new gadgets. It signals a wholesale rethinking of governance, monitoring, and distribution, grounded in the use of advanced technologies such as IoT sensors, artificial intelligence, digital twins, blockchain, and cloud computing.

Technology Meets Climate Pressure

Across Europe, nearly 17 percent of the population already faces water stress, a figure that rises to about a third worldwide. Spain, with its sprawling agricultural sector, crowded tourist destinations, and large urban centres, is particularly vulnerable. Digital solutions are being deployed at multiple scales to confront these pressures. Real-time monitoring now allows water utilities to detect leaks immediately, saving as much as 20 percent of water losses in cities such as Madrid and Barcelona. Predictive models help authorities anticipate droughts or floods weeks in advance, rather than waiting until reservoirs fall to critical levels. Digital twins simulate scenarios of water distribution, supporting both long-term planning and rapid crisis response, while mobile apps empower citizens to track their own usage and report leaks.

The Spanish state has placed digitalisation of the water cycle at the core of its Recovery, Transformation and Resilience Plan, launched after the Covid-19 crisis with funding from the EU’s Next Generation initiative. This gave rise to the Water-Cycle Digitalisation Strategic Projects for Economic Recovery and Transformation, known as WCD-SPERT, a program worth over four billion euros between 2022 and 2026.

A National Experiment in Digital Water

Through WCD-SPERT, Spain is financing hundreds of projects that cover the entire cycle of water management, desalination, distribution, irrigation, wastewater treatment, and reuse. It also fosters public-private partnerships, bringing together utilities, technology companies, and research institutes in what amounts to a national experiment in digital water management.

The changes are visible on several fronts. River Basin Authorities now rely on Automated Hydrologic Information Systems, which integrate thousands of sensor inputs to improve forecasting and water allocation. In the Guadalquivir basin, real-time quality monitoring ensures compliance with environmental standards and helps pinpoint sources of pollution. In the Canary Islands, IoT-enabled systems optimise desalination plants and cut distribution losses. Meanwhile, agriculture, which consumes the majority of Spain’s water, is seeing a rapid uptake of smart irrigation. Systems that link soil moisture data with weather forecasts allow farmers to deliver exactly the right amount of water at the right time, maximising efficiency and cutting costs. The Ministry of Agriculture is reinforcing this shift with a 2.4 billion investment to cover 700,000 hectares by 2027.

Digitalisation is also transforming governance. In Valencia, a mobile app lets residents monitor their water use and engage directly with local authorities. At the basin level, participatory platforms enable communities, farmers, and utilities to exchange information and co-design management plans, reducing conflict in regions where scarcity has long been a source of tension. Spanish innovation hubs such as Cetaqua and the Digital Water Innovation Hub have emerged as key intermediaries, linking research centres with private operators to speed the uptake of new tools.

Costs, Culture, and Cyber Risks

Yet the path is not without obstacles. The upfront cost of acquiring digital infrastructure is steep, particularly for small municipalities and irrigation communities with limited budgets. Even when projects are financed, the ongoing expenses of maintenance, updates, and staff training can strain resources. Cultural resistance is also a factor. Traditional water management practices remain deeply rooted in many communities, and shifting to technology-driven systems can disrupt familiar processes.

Moreover, inconsistent data standards and fragmented governance make it difficult to ensure interoperability between regions and agencies. Concerns over data privacy and cybersecurity are rising, as water infrastructure becomes increasingly dependent on digital platforms vulnerable to attack. Equity issues loom large, too. Rural and marginalised communities often lack access to advanced tools, widening the gap between well-resourced areas and those left behind. Even when systems are available, low levels of digital literacy hinder their effective use.

Policymakers are being urged to create supportive frameworks, from funding mechanisms and training programs to legal protections for data ownership and privacy. Without these safeguards, the digital revolution risks deepening inequalities rather than solving them.

Lessons for a Thirsty World

The Spanish case nonetheless offers important lessons for other nations grappling with water stress. Embedding digitalisation within existing governance frameworks has proven essential for ensuring that tools are not just deployed, but actually integrated into the daily functioning of utilities and basin authorities. The role of public-private partnerships has been pivotal in fostering innovation, pooling expertise, and spreading costs. Spain’s high innovation rate in water technologies, reflected in its patent performance, underscores its potential as a global leader in this field.

At the same time, the research warns that evidence on the actual impacts of digitalisation is still scarce. Many projects remain in early stages, and much of the available data comes from self-reported expectations rather than measurable outcomes. Future research and rigorous monitoring will be needed to assess whether the enormous investments now being made deliver the promised gains in efficiency, sustainability, and resilience.

Spain’s experience illustrates both the promise and the peril of digital water management. Smart systems are already saving water, improving transparency, and helping communities prepare for climate extremes. But the unresolved challenges of cost, governance, and inclusivity will determine whether this transformation becomes a model of adaptation or a cautionary tale. For Europe, which aims to achieve climate neutrality by 2050, Spain’s journey offers a glimpse into how the digital and green transitions may converge, and what pitfalls to avoid along the way.