19119_Authority_April_2026

municipalauthorities.org │ 13 S peaking the S ame L anguage : H ow H yperscalers and W ater U tilities C an P artner for S marter G rowth By Matt Crow, PE; Karen Burgi, P.E.; Seoyeong Lee, EIT; and David Sayers, Black and Veatch As hyperscale data centers continue their rapid expansion, the water industry finds itself at the center of an unexpected but critical growth story. While power availability is often the headline constraint for data center development, water supply, cooling needs, and wastewater management increasingly shape site feasibility and long-termoperations. For water utilities, this represents both a significant opportunity and a complex challenge: how to support one of the world’s fastest-growing digital infrastructure sectors while safeguarding system capacity, community needs, and long- term resilience. At the heart of this challenge lies a cultural mismatch. Hyperscalers - global technology companies operating massive, cloud-scale data centers - move quickly, take calculated risks, and frequently adjust their technical requirements as site evaluations evolve. Water utilities, by nature and necessity, operate differently. Their work is grounded in long-term asset management and planning, high levels of regulatory compliance, public accountability, and methodical risk management. These contrasting operating styles can create friction, especially when hyperscalers arrive with aggressive timelines that collide with permitting and infrastructure schedules that cannot be rushed. Data Centers Unique Water Needs Yet the collaboration between hyperscalers and water utilities is not only possible, but also increasingly essential. Data centers have unique water needs that differ from other industrial users. As with any industrial facility, they require domestic water and wastewater connection for the on-site staff. Their cooling systems introduce additional complexity. Data centers in Pennsylvania, and other states with continental climates (hot summers/cold winters), have a seasonal cooling demand that fluctuates throughout the year. As such, the traditional view of industrial customers bringing stable demand does not apply and the difference between the peak and average cooling water demands can present challenges when it comes to infrastructure planning and sizing. Data centers’ peak cooling water demands occur during the summer, coinciding with the utility’s own peak demand period which can add stress to the water system. As hyperscale data centers continue to grow, so does the importance of understanding their total water footprint and long-term implications for utility systems. Hyperscalers will typically look to the local water providers to help them meet cooling demand, as this is assumed to be the quickest and most reliable option. If necessary, hyperscalers will explore obtaining their own supplies from ground, surface, or wholesale sources and obtaining permits and managing treatment and disposal facilities directly; this is a secondary preference, or a source of redundancy. Although most cooling water at data centers is provided by potable water, hyperscalers’ growing interest in using non‑potable water sources to support their sustainability goals can create meaningful opportunities for public‑private partnerships, particularly in advancing practices such as reclaimed water use that may help to reduce their overall impact. Navigating Discussions So how can water suppliers best prepare to help navigate discussions with data center developers? Hyperscalers consistently request detailed information from utilities early in the site selection process . They are interested in any excess capacity that may be available in the existing system, but also in additional capacity that can be unlocked through infrastructure upgrades. Their inquiries often include water availability, redundancy options, D ata centers have unique water needs that differ from other industrial users .