Partnering for Resilience: How Data Centers and Municipalities Can Collaborate on Water Sourcing

Meeting the Water Demands of the Digital Age

As data centers continue to expand to meet the demands of cloud computing, AI, and digital infrastructure, their water needs—particularly for cooling—grow just as rapidly. 

In many regions, this growth intersects with increasing water scarcity and aging municipal infrastructure. The solution? Collaboration. By working closely with municipalities, data center owners can develop sustainable, resilient water sourcing strategies that benefit both private and public sectors.

Why Collaboration Matters

Municipalities and data centers often face overlapping water challenges like:

• Limited freshwater availability
• Aging infrastructure
• Climate-driven variability in water supply
• Population and industrial growth

By aligning goals and resources, both parties can co-develop more cost-effective, sustainable, and publicly supported solutions.

Key Strategies for Effective Collaboration

1. Engage Early and Transparently

Initiate conversations with municipal water utilities and planning departments during site selection or expansion planning. Early engagement helps:

• Identify potential water sources (potable, non-potable, reclaimed)
• Understand local constraints and opportunities
• Build trust with community stakeholders

2. Explore Alternative Water Sources Together

Municipalities may have access to:

• Reclaimed wastewater
• Stormwater capture systems
• Brackish or non-potable groundwater

Joint feasibility studies can uncover innovative ways to integrate these sources into data center operations.

3. Co-Invest in Infrastructure

Public-private partnerships (P3s) can help fund:

• New pipelines or pumping stations
• Water reuse or desalination facilities
• Storage and redundancy systems

These investments can serve both the data center and the broader community, improving resilience for all.

4. Align on Sustainability Goals

Data centers often have aggressive ESG targets. Municipalities are increasingly focused on climate resilience and water equity. Collaboration can help:

• Reduce reliance on potable water
• Improve water reuse rates
• Enhance public perception and regulatory alignment

CDM Smith’s Role in Facilitating Collaboration

At CDM Smith, we specialize in bridging the gap between private sector innovation and public sector infrastructure.

Our teams support:

• Stakeholder engagement and facilitation
• Integrated water resource planning
• Permitting and regulatory navigation
• Design and implementation of shared infrastructure

A Smarter Way to Source Water

In a world of growing water stress, collaboration isn’t just a best practice—it’s a necessity. By partnering with municipalities, data center owners can secure reliable water supplies, reduce environmental impact, and build stronger relationships with the communities they serve.