AWWA releases new report to help water utilities evaluate data center development

WASHINGTON, Oct. 29, 2026 /PRNewswire/ -- Water utilities are increasingly at the center of community discussions about how proposed data centers could impact water resources, infrastructure and system capacity. A new report from the American Water Works Association (AWWA), Cooling the Cloud: Considerations for Water Utilities Evaluating Data Center Development, guides utilities as they navigate those conversations.

The report, produced in collaboration with Carollo Engineers, examines resource, technological, financial and contractual factors, including maintaining water supply reliability, recovery of growth-related costs, wastewater impacts and environmental considerations.

"Water utilities are foundational to local economic development and industrial growth, making their early involvement in community planning essential for major development projects," said AWWA Chief Executive Officer David LaFrance.

Cooling the Cloud: Considerations for Water Utilities Evaluating Data Center Development builds on AWWA's 2025 report, Cooling the Cloud: Water Utilities in a Data-Driven World, which provided an overview of how data centers affect water utilities and the communities they serve.

The new report includes adaptable 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.

Key insights for utilities include:

• 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.

This report does not advocate in favor of or against data center development. Rather, it is designed to help water utility professionals evaluate proposed data center projects objectively and comprehensively.

"Each community will ultimately consider many factors and viewpoints as it assesses data center proposals," LaFrance said. "AWWA looks forward to working with our many members to share additional insights on data center development and support informed decision-making."

Cooling the Cloud: Considerations for Water Utilities Evaluating Data Center Development is available on AWWA's report overview page.

Established in 1881, the American Water Works Association is the largest nonprofit, scientific and educational association dedicated to managing and treating water, the world's most vital resource. With approximately 50,000 members, AWWA provides solutions to improve public health, protect the environment, strengthen the economy and enhance our quality of life.

SOURCE American Water Works Association