The American Water Works Association (AWWA), an international, nonprofit scientific and educational society, has released a report outlining how water utilities can assess the potential effects of proposed data center developments on water supplies, infrastructure and wastewater systems.
The report titled Cooling the Cloud: Considerations for Water Utilities Evaluating Data Center Development, was developed with Carollo Engineers. It examines the resource, technological, financial and contractual issues utilities should consider before approving or supporting data center projects. These include water supply reliability, infrastructure capacity, wastewater impacts, environmental considerations and the recovery of costs associated with development.
According to a press release, the report builds on AWWA’s 2025 publication, Cooling the Cloud: Water Utilities in a Data-Driven World, which examined the relationship between data center development, water utilities and local communities.
“Water utilities are foundational to local economic development and industrial growth, making their early involvement in community planning essential for major development projects,” said David LaFrance, CEO, AWWA. “Each community will ultimately consider many factors and viewpoints as it assesses data center proposals, AWWA looks forward to working with our many members to share additional insights on data center development and support informed decision-making.”
The report outlines a project-by-project approach, urging utilities to first assess data centers’ cooling technologies, projected average and peak water consumption, wastewater needs and potential future expansion. These factors should be weighed against available water supplies, infrastructure capacity, reuse opportunities and environmental impacts before utilities commit resources.
It also calls on utilities to establish clear agreements with developers covering infrastructure investments, project costs and each party’s responsibilities as developments evolve. The aim is to prevent existing customers from bearing additional financial burdens.
The report further emphasizes early public engagement, with utilities encouraged to disclose projected water demand, system capacity, potential rate impacts and unresolved concerns. Community benefit agreements are also suggested as a way to improve transparency and ensure accountability.
It is noteworthy that the AWWA report does not take a position for or against data center development, but is intended to help utilities evaluate proposals based on their individual circumstances.