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New AWWA Report Offers Water Utilities Resources for Weighing Data Center Plans
The report, which covers factors such as water supply reliability and growth-related costs, takes no side on data center development, the association said.
Water utilities weighing proposed data centers are the intended audience for a new report from the American Water Works Association (AWWA). Titled Cooling the Cloud: Considerations for Water Utilities Evaluating Data Center Development, the report was developed with Carollo Engineers.
AWWA announced the report Oct. 29, saying utilities increasingly find themselves central to local discussions about the possible effects of proposed data centers on water resources, system capacity and infrastructure. Its purpose is to steer utilities through those conversations, the association said.
The report weighs financial, contractual, technological and resource factors. Its adaptable resources are meant to help utilities screen proposed projects, spot information gaps and gauge their own capacity, AWWA said. They also cover comparing water-supply and infrastructure alternatives, setting development conditions, and preparing to negotiate with data center developers and owners.
One of the report’s key insights is that utilities should closely examine the technology and requirements of each proposed data center. That review covers cooling technology, project-specific operating requirements, peak and average water demand, long-term buildout, and wastewater impacts. Before making any commitments, utilities should also judge whether the community can absorb the demand by weighing the reliability of available water supplies, opportunities for reuse, environmental considerations, and tradeoffs between water and energy.
On finances, utilities should pin down project costs while keeping existing customers from bearing financial impacts, the report says. Formal agreements should set out what each party owes as the project takes shape and changes. The public should learn of proposed development at the earliest point the law allows, and utilities should share details on rates, community benefits, infrastructure capacity, water demand and unresolved questions.
Rather than taking a position on data center development, the report is built to help water utility professionals review proposed projects in an objective, comprehensive way, AWWA said. It expands on the association’s 2025 report, Cooling the Cloud: Water Utilities in a Data-Driven World, which gave an overview of data center effects on water utilities and their communities.
