New AWWA report helps water utilities evaluate data center development

When a proposed data center lands in a community — or an existing one aims to expand — water utility leaders face myriad questions and decisions about potential impacts to service and supply.

A new report from AWWA aims to help utilities evaluate each data center proposal to assess water resource considerations, infrastructure, system capacity, and community priorities.

“Each community will ultimately consider many factors and viewpoints as it assesses data center proposals,” AWWA CEO David LaFrance writes in the paper’s foreword. “[The report] provides a practical framework for water utilities to engage in data center deliberations, strengthening their role as anchor institutions in their communities.”

The 75-page document, titled “Cooling the Cloud: Considerations for Water Utilities Evaluating Data Center Development,” breaks down data center classifications, cooling technologies and their effect on water demand, and water source options. It also discusses water reuse integration; financial frameworks, rate structures and cost recovery; wastewater management, and community engagement strategies.

The report does not advocate for or against data center development. “Rather, it provides water professionals with information and considerations as they evaluate projects, engage with other stakeholders and support informed decision-making,” LaFrance said.

The report includes resources to assist utilities in screening proposed projects, identifying information gaps, evaluating utility capacity, comparing infrastructure and water-supply alternatives, establishing development conditions, and preparing for negotiations with data center owners and developers.

“AWWA looks forward to working with our many members to share additional insights on data center development and support informed decision-making,” LaFrance added.

The report builds on another by AWWA, “Cooling the Cloud: Water Utilities in a Data-Driven World.” Find both papers on AWWA’s website.