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AWWA's New Report on Data Center Evaluation

On October 29, 2026, the American Water Works Association (AWWA) released a vital new report titled Cooling the Cloud: Considerations for Water Utilities Evaluating Data Center Development. This publication is particularly timely, as water utilities increasingly find themselves at the forefront of discussions regarding the impact of proposed data centers on local water resources and infrastructure.

Understanding the Challenge

With the surge in data center developments, the necessity for water utilities to thoroughly assess the implications of these projects has never been more pressing. Data centers, pivotal for today’s digital economy, require significant amounts of water for cooling and other operational needs. The new report aims to equip utilities with practical guidelines to navigate the complexities associated with data center projects responsibly.

Core Insights of the Report

Jointly developed with Carollo Engineers, the report delves into various aspects crucial for water utilities when considering data center applications. It covers resource management, technological needs, financial implications, and contractual obligations. Here are some of the key points:

1. Evaluate Technology and Requirements
Utilities are advised to scrutinize each proposed data center's operational specifications, such as cooling technologies and both average and peak water demands. Understanding these requirements can help gauge potential wastewater impacts and how these developments might affect water supply over the long term.

2. Community Capacity Assessment
It's essential for utilities to assess whether their communities can handle the increased water demand. This includes evaluating existing water supply reliability, potential for water reuse, and environmental impacts before solidifying any commitments.

3. Financial Implications
The report emphasizes the need for utilities to understand the financial ramifications of new developments. It encourages utilities to determine the costs associated with projects while ensuring existing water consumers remain shielded from any adverse financial burdens.

4. Transparency and Community Engagement
The importance of transparent communication with the public cannot be overstated. The AWWA advises utilities to share comprehensive information on proposed developments early in the process. This includes details on water demands, infrastructure capacities, and net community benefits.

5. Dynamic Agreements
Establishing clear contractual agreements is critical as projects evolve. The utility must define the roles and responsibilities of all parties involved in the development process, adapting these agreements as necessary.

Moving Forward with Confidence

Rather than taking a definitive stance for or against data centers, the AWWA's report aims to offer water utility professionals the tools to make informed, objective evaluations of proposed projects. As CEO David LaFrance notes, “Each community will ultimately consider many factors and viewpoints as it assesses data center proposals.”

As discussions around data centers continue to evolve, the AWWA is committed to providing ongoing guidance and insights to assist its members and stakeholders in making sound decisions that align with both economic development and water sustainability priorities.

Conclusion

The Cooling the Cloud report is an invaluable resource for water utilities as they strategize their roles in an increasingly data-driven world. With approximately 50,000 members, the AWWA continues to play a pivotal role in managing and treating one of our most precious resources—water. For more detailed insights, the report can be accessed on the AWWA's official report overview page.