19119_Authority_April_2026

6 The Authority │ April system can support fire flow needs for the data center or if on-site storage will be required for fire flow needs. Wastewater utilities should obtain accurate estimates of discharge volume and strength and understand the type of cooling that will be used for the equipment. Data centers using water-based cooling systems will discharge higher concentrations of dissolved minerals and Total Dissolved Solids (TDS). This can be determined based on potable water content and the cycles of concentration to reuse the water before it is discharged. In addition, the discharge may have a higher temperature than residential wastewater effluent. Volumes may increase seasonally during warmer months when peak cooling of the equipment is required. You’ll want estimates of the expected average and peak discharge volumes; the rate of peak discharge; chemical additives to be used in the cooling system; anticipated concentrations of TDS, chlorides, silica, and metals; and temperature ranges. From a financial perspective, this information is foundational. Incomplete or overly simplified demand estimates can lead to mispriced rates, under sized fees, and capital investments that are not fully recovered if operations change or usage never materializes as projected. Utilities should treat this step not just as a technical data request, but as the basis for rate design, capacity reservation, and contract enforcement. Step 2 – Assess your system’s capacity to meet data center demand. You need to determine if your existing infrastructure can effectively meet the data center’s demand without lowering the quality of service for existing customer s. You also need to know how serving the data center could impact your permits and regulatory requirements. If you operate a water utility, hydraulic modeling can help you evaluate source availability and treatment capacity. It can also analyze your storage and pressure zones to determine the data center’s potential impact on availability and pressure. Changes in demand can impact water velocity, increasing friction along pipe walls and consuming the energy that drives the water (thereby decreasing pressure). Disruptions in flow velocities can also increase water age in some areas, creating potential issues with disinfectant residual decay, biofilm, and bacteria. If you operate a wastewater utility, modeling can help you assess if pipes and pumps can handle the variable flows without causing system surcharges and sewage back-ups or excess strain on the infrastructure. Storage tank(s) may be needed to control the discharge rate of the data center wastewater to meet system availability, especially during the seasonal peak demands. A model of your wastewater treatment plant can help you evaluate how the data center discharge will impact your treatment system, especially given its low organic content. A data center development can impact or trigger a variety of permits and regulatory requirements. Here are the ones you should be most concerned about. NPDES Permits You could see: • New or increased requirements for monitoring and stricter limits related to salinity, Total Dissolved Solids, chlorides, Biological Oxygen Demand, nutrients, and temperature. • Requirements to demonstrate sufficient hydraulic and organic capacity. • Increased reporting requirements for wet weather bypass and Sanitary Sewer Overflows. Drinking Water Permits You may be subject to new requirements related to surface water withdrawals, surface water intake, groundwater wells, and drought/ emergency restrictions. In addition, depending upon the type of cooling system that is used, consumptive use permits may also be required. Industrial Pretreatment Programs If your authority has a Municipal Industrial Pretreatment Program, you may need to: • Add the data center to your Significant Industrial User inventory, issue an Industrial User Permit, perform inspections and sampling, and include them in your annual reporting. • Draft new permit language templates to account for the Continued on page 60. ...these six steps form a disciplined approach to managing the technical, regulatory, and financial risks associated with data center development.