Skip to Main Content
logo
How_Data_Centers_and_Municipalities_Water_Sourcing_hero.jpegAerial view of a large data center complex with cooling towers emitting steam.

How data centers and municipalities can collaborate on water sourcing

Building sustainable water strategies through public-private collaboration

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

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

Early engagement allows us to align infrastructure planning with long-term water availability.

Municipal Water Utility Manager

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.
 

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.
 

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

 

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.
 

More resources on this topic

Desert landscape with shrubs, open sky, and distant buildings.
Insight

Unlocking brackish water as a sustainable solution for data center cooling

In water-stressed regions, relying solely on municipal or freshwater sources is no longer sustainable. One promising alternative? Brackish groundwater—a saline resource that’s abundant, underutilized, and increasingly viable thanks to advances in treatment technologies.
Three people in hard hats examine industrial equipment at a water treatment facility.
Insight

Under­stand­ing if water reuse makes sense for your facility

If you are looking to expand your water source alternatives, consider municipal effluent as an option to future-proof your water supply.
Person inspecting red fire extinguishers lined up with clipboard in hand.
Insight

Prioritizing fire protection and life safety

When it comes to compre­hen­sive fire protection engineering, lives are on the line and you can never be too vigilant. Fire protection expert Jarron Gass shares insights to help you establish appropriate protection.
Glowing digital envelopes on a dark background, symbolizing email communication.

Stay up to date on advanced water treatment

We're committed to strengthening water supply portfolios where they are most needed today and will be tomorrow. Opt in to our newsletter to learn more.