Kieran Byrne, Architect & Engineering Manager, Axis Communications explains why AMP8’s £1.2 billion security budget could form the foundation of the water industry’s data-driven future – but only if it is invested wisely.
Ofwat’s latest asset management period, AMP8, marks a steep rise in investment for water companies.
At £104 billion, the spending package is four times larger than that of the previous five-year AMP, though still around £4 billion short of the total required in the industry’s business plans.
That additional spend comes with high expectations; AMP8 aims to deliver measurable improvements in resilience, efficiency, sustainability and customer outcomes.
Ofwat’s top-line expectation is that water companies use AMP8 to ‘transform their performance’, dedicating £1.2 billion of the budget to security-related expenditure.
This investment in security has never been more important or urgent.
Critical national infrastructure entities, like the water industry, are under increasing threat of attack: a staggering 95% of CNI organisations suffered a data breach between 2024 and 2025.
Every penny of this Ofwat investment must deliver a measurable impact.
In a world where infrastructure is as much a cyber target as a physical one, AMP8 is an opportunity to invest in resilience and address systemic vulnerabilities in the sector.
Perimeter security remains an obvious, yet too often overlooked, starting point.
Water facilities tend to be remote, under-monitored, and vulnerable.
A 2024 survey suggests that almost half of water workers at such sites have seen an increase in verbal and physical abuse from the public, while many reservoirs likely have aging fencing that could lead to trespassing.
Any intrusion is a risk, to the intruder and potentially those downstream, no matter how harmless it might appear; the perimeter is the front line.
Ofwat recognises security shortfalls at the fence, meaning physical protection has been allocated three-fifths of AMP8’s total security budget.
Protection measures could include modern surveillance systems such as thermal and radar detection technologies.
Modern video surveillance transforms the security of high-risk and remote sites.
A camera can collect critical evidence, issue immediate alerts based on intelligent object detection, enable two-way audio communication and more – but as with any surveillance operation, effectiveness depends on thoughtful and forward-thinking system design.
There is a long list of requirements to consider.
Devices must be carefully selected and placed to cover the physical perimeter, day and night.
They must be rugged enough to survive harsh environmental conditions, and durable enough to function flawlessly throughout the long upgrade cycles that AMP schedules tend to dictate.
Cameras should offer sufficient processing power to operate independently, with minimal additional infrastructure overhead.
Given limited data connectivity at some locations, low bandwidth is also a critical consideration.
AMP8 encourages the use of smart technologies and the smarter the security hardware, the more it can offer.
Accurate object classification is crucial to lower false alarms, network load, and pressure on the overall security function; any alert should be immediate and actionable.
AMP8 also places an emphasis on data-driven decision-making – and the data-first approach of today’s surveillance hardware gives the camera network a valuable secondary role beyond security.
Modern network surveillance cameras are essentially powerful computers with a lens, offering far more than simple video monitoring.
Edge-based analytics that run onboard the camera can offer advanced functionality, like flood detection, asset monitoring and environmental data collection, offering water companies greater agility and oversight.
It can also drive predictive maintenance programmes, where equipment is monitored remotely with custom analytics.
Data is a dividend and there is much to be gained, if such innovations happen within systems which are secure and resilient by design.
Resilience is about the ability to absorb shocks, and while the water industry is well used to dealing with climate shock, in its prominent role as critical infrastructure it must also be aware of the potential for digital disruption.
The influence of nation states, opportunistic hackers and malicious code running through botnets threatens to breach the cyber perimeter and disable vital facilities or steal important data.
AMP8’s large investment, however, offers an opportunity to embark upon a converged security path.
Physical and cyber defence, given their equal importance, are best approached when combined into a single, integrated strategy.
This is particularly true when one’s security strategy necessarily leans on IoT devices.
These can offer convenient entry points for hackers, particularly when firmware updates are missed or unsupported.
Cybersecurity with ongoing support and maintenance must, therefore, be considered as important as video quality or smart functionality in any camera system.
Generous AMP allocations do not come around often, particularly not at the level of AMP8.
Security decision-makers must spend wisely, focusing not just on upfront costs but on long-term value.
Experience across many sectors shows that all too often, low-cost hardware is chosen because of its initial appeal.
But that short-term saving can lead to long-term burden.
AMP8’s investment in security is significant, and it is not yet known whether AMP9 will offer much headroom for further security investment.
The time to act is now; this is a hard-won budget that must be spent on security systems built to last the decade.
Upfront costs typically account for just 30 percent of a surveillance system’s total cost, which means the real value lies in long-term performance, not the initial price.
Total cost of ownership should be the primary procurement metric.
Equipment that is inefficient in energy, bandwidth or storage, and fails to deliver on its intended purpose, can create ongoing costs and operational challenges.
A poor hardware selection could lead to a costly replacement and repair process and extensive maintenance.
An investment in security is a commitment for the long term, to a hardware and software ecosystem and the company supporting it.
A higher initial outlay on quality, resilient, cared-for hardware is the route to savings over time.
AMP8 is more than just a funding cycle.
It’s a pivotal moment, an opportunity to modernise the security and resilience of the UK’s water infrastructure.
With the right approach, today’s investments in security and surveillance systems will support safer, more efficient sites that meet the modern demands of this critical sector, while also strengthening regulatory compliance.
The key is to treat security not as a checkbox but as the strategic asset it is.
Invested wisely, AMP8’s security spend will do more than simply protect against today’s threats.
It will act as a key enabler for the agile, sustainable and data-driven water infrastructure that AMP8 is designed to deliver.
