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52 The Authority │ April dilemma can be additional, dedicated storage onsite at the data center. From a utility perspective, averaged water delivery rates paired with on-site storage can dramatically reduce system strain and infrastructure investment. Space is typically at a premium on a data center campus, but to the extent that water storage can be accommodated, this approach will minimize the sizing of linear infrastructure and help avoid water age/quality issues that may arise because of seasonal unused capacity. Redundancy planning is a key consideration for hyperscalers which is a characteristic shared with water utilities. If storage solutions are developed collaboratively, both parties benefit – but early agreement and clarity around operational expectations is required. Related to this, a utility should consider the need for a minimum usage fee (“take or pay”) agreement and be prepared to provide additional water line flushing to prevent water quality issues in times of low demand from the data center. Sustainability provides one of the strongest bridges between utilities and hyperscalers . Major technology companies have made bold commitments around being ‘Water Positive'. While some goals may be difficult to achieve in the short term, utilities increasingly recognize the potential for hyperscaler investments to support broader community and environmental objectives. Hyperscalers are also interested in supporting reclaimed water projects to reduce their reliance on potable water sources and working with utilities to identify and implement watershed restoration projects to benefit the community. Ultimately, strengthening the utility–hyperscaler relationship requires better communication, clearer expectations, and mutual respect for timelines and constraints. Mismatched assumptions—whether about permitting duration, system capacity, or terminology—are among the most common barriers. Utilities that develop proactive playbooks, internal training, or cross-departmental teams for data center engagement build not only stronger partnerships but also competitive advantage in attracting future digital infrastructure. As data centers continue shaping the landscape of water demand, utilities have a unique opportunity to define how—and how well—these projects integrate into their systems. Those that embrace collaborative planning, informed decision-making, and transparent dialogue will lead the way in serving the digital economy while protecting the communities they support. In an era where water and data are both foundational resources, speaking the same language is the first step toward smarter, more resilient growth. S Black and Veatch article continued from page 14. U ltimately , strengthening the utility – hyperscaler relationship requires better communication , clearer expectations , and mutual respect for timelines and constraints .