Why utilities should bring water into the data center energy conversation

Pete Elliott and Richard Tribble | Source: Utility DIVE | Posted 08/09/2025

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For utilities, this is not only about supporting customer growth but also about protecting grid integrity and infrastructure investments in an increasingly resource-constrained environment.


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The rapid growth of data centers, driven by advancements in AI and cloud computing, has led to a significant increase in electricity consumption. However, a crucial element often overlooked in discussions about energy demand is water usage, particularly in cooling systems that are resource-intensive. As data centers evolve, the trade-offs between water consumption and energy demand must be integrated into planning and forecasting to ensure infrastructure resilience and environmental sustainability.

Utilities can play a vital role in supporting sustainable data center development by incorporating water considerations into their engagement processes. This includes early coordination on cooling strategies, modeling regional impacts, and promoting closed-loop water systems. As data centers become major utility customers, a collaborative approach that addresses both energy and water resource management will be essential for maintaining grid integrity and supporting responsible growth in an increasingly resource-constrained environment.



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Source Link: https://www.utilitydive.com/news/utilities-water-electricity-ai-data-center/756804/

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