Considerations for Water Utilities Evaluating Data Center Development
AWWA’s new report leverages the water sector’s experience and existing AWWA guidance to help utilities consider impacts of proposed data center development in their service areas.
AWWA Releases Second Data Centers Report
AWWA collaborated with Carollo Engineers to release a new report titled Cooling the Cloud: Considerations for Water Utilities Evaluating Data Center Development. This report builds on AWWA’s 2025 report Cooling the Cloud: Water Utilities in a Data-Driven World, which explored the implications of rapidly growing data center development for water utilities and the communities they serve.
Cooling the Cloud: Considerations for Water Utilities Evaluating Data Center Development offers evaluation criteria and practical resources to assist water utilities in considering data centers’ impacts water resources, infrastructure, and system capacity, among other factors. This report does not advocate in favor of or against data center development. Instead, it serves as a resource to help water utility professionals and others make informed decisions as they evaluate potential data center projects.
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Key Insights for Utilities
- Carefully evaluate each proposed data center’s technology and requirements. Analyze project-specific operating requirements, cooling technology, average and peak water demands, wastewater impacts and long-term buildout.
- Determine if the community can accommodate the demand. Evaluate reliability of available water supplies, reuse opportunities, water-energy tradeoffs and environmental considerations before making commitments.
- Understand financial impacts and contractual needs. Determine project costs while protecting existing customers from financial impacts. Develop formal agreements that define each party’s obligation as the project develops and changes.
- Engage the community with transparency. Communicate with the public about proposed development as early as possible within lawful limits. Share information about water demand, infrastructure capacity, rates, community benefits and unresolved questions. Consider community benefit agreements to facilitate information sharing and ensure accountability.
“The rapid growth of data centers, and the public debate accompanying that growth, places water professionals at the center of complex decisions about water resources, infrastructure investments, system capacity, and community development priorities.”
David LaFrance
AWWA Chief Executive Officer
