Helping utilities navigate data center growth

As communities across the country grapple with the rapid rise of data centers, the American Water Works Association (AWWA) is helping utilities navigate this new landscape. With the release of Cooling the Cloud: Water Utilities in a Data-Driven World, AWWA equips members with strategies, case studies, and expert insights for managing the unique challenges and opportunities data centers present.

“While utilities are experienced in managing industrial customers, the rapid growth of data centers demands faster, more adaptive planning and coordination,” the paper notes. “Although data centers present unique concerns, the water sector possesses the foresight to meet the moment.”

During AWWA’s Legal and Financial Roundtable last month, members and industry experts shared experiences that mirror the challenges and solutions outlined in Cooling the Cloud. These insights reinforce the report’s guidance on proactive planning, collaboration, and adaptive strategies.

In Loudoun County, Va., now home to more than 125 data centers, utility leaders have seen how proactive planning can help communities adapt.

“Planning for storage and resiliency and redundancy is something that we’ve been doing for a long time, and I think that has really helped us be prepared for the data centers that come to our service area,” said Brian Carnes, Loudoun Water general manager.

But Loudoun is just one of many examples. Across the country, utilities are innovating to keep pace with technological change, and the digital technology sector is doing the same.

“We’re planning for increased power density and thinking about cooling systems and technologies we can leverage to increase efficiency and mitigate impacts on water use,” said Diana Rodriguez, Amazon Web Services principal of sustainability public policy.

The white paper emphasizes early collaboration between utilities and data center developers to effectively manage water and energy demands. Utility experts echoed this point.

“As a utility leader, you really need to get into that first meeting so you’re a part of the initial land entitlement, all the way through commissioning,” said Benjamin Loveday, Spotsylvania County, Va., assistant county administrator of community operations. “The biggest challenge will be understanding true capacity and discharge needs.”

Carnes added, “I would really find someone on your water utility staff that can dedicate themselves to data centers. Demands are unknown, technology is changing, and the growth moves quickly. Having somebody that’s dedicated, in contact with the data centers and giving them space to learn about this has been really successful for us; and I would encourage all utilities to allow somebody or multiple people that opportunity.”

Cooling the Cloud provides timely guidance for utilities anticipating data center development. The report outlines eight planning priorities, from evaluating customer impacts to financial modeling, while addressing the uncertainty utilities face as technology and demand evolves.

The white paper is available on AWWA’s website.