The explosive growth of data centers—driven by surging demand for artificial intelligence (AI), machine learning, Internet of Things (IoT), and cloud services—is amplifying the sector’s environmental impacts. Water is emerging as a crucial strategic priority for data center owners, operators, and communities. As companies transition from legacy, on-premises systems to larger hyperscale facilities, the demand for water for cooling and operations is rising, elevating its role in siting, design, and risk management decisions.
To navigate these pressures, leading tech firms are deploying various advanced strategies. These include investing in reclaimed water infrastructure, piloting ”water-free” and closed-loop cooling systems, and leveraging digital tools to monitor and optimize water usage. These efforts are not only about environmental stewardship; they also reflect growing operational risks associated with water availability, permitting timelines, and community opposition. For solution providers, the expansion of digital infrastructure presents a significant opportunity to integrate water technologies throughout the asset life cycle, from pretreatment to system optimization.
This Insight Report provides a comprehensive analysis of the U.S. data center market, highlighting the scale, outlook, and technology trends influencing future investments. Bluefield’s forecast includes detailed projections for water demand and spend from 2025 to 2030, categorized by data center type, cooling technology, and geography. Additionally, it provides competitive intelligence on key industry players and solution providers within this rapidly evolving sector.
Table of Contents
Section 1—Defining the Data Center Landscape
- U.S. Data Center Market: Types of Data Centers
- U.S. Data Center Market: Locations and Ownership
- U.S. Data Center Market: New Announcements
- U.S. Data Center Market: Existing and Planned Capacity
- U.S. Data Center Market: Rise in AI and Shift to Hyperscale Facilities
- U.S. Data Center Market: Large CAPEX Investments
- Power Demand Transitions to Next Phase, Driven by Data Center Growth
- Investment by Real Estate Trusts Drive Data Center Boom
- North America Colocation Low Vacancy to Drive Build-Out
- Focus on Sustainable Operations
Section 2—Data Center Water Use Trends & Challenges
- Data Center Water Use Climbs as Many Industries See Declines
- Reliance on Municipal System Slows Development
- Comparing Water Use Across Leading Companies
- Water Use Variation By Region
- Water Use: Common Challenges and Treatment Solutions
- Water Requirements by Cooling Technology
- Shift Toward Liquid Cooling
- Maturity of Data Center Cooling System Technology
Section 3—Data Center Water Use & Spend Forecasts
- Research Methodology and Data Sources
- Data Center Water Consumption Over Time
- Data Center Water Use Outlook by Data Center Type
- Data Center Water Use Outlook by Cooling Technology
- Data Center Water Use by State
- Top-Line Water for Data Centers Spend Outlook
- Water for Data Centers Spend Breakout – CAPEX
- Water for Data Centers Spend Breakout – OPEX
Section 4—Emerging Water Opportunities
- Pockets of Opportunity for Water Solutions Amid Data Center Build Out
- Partnering with Municipalities to Capitalize on Reclaimed Water
- Digital Solution Deployment for Water Management
- Private Public Partnerships Target Leak Detection
- Tackling Water Scarcity in Agriculture
Section 5—Data Center Water Use Profiles
- Amazon Web Services (AWS)
- CoreSite
- CyrusOne
- Digital Realty
- Equinix
- Flexential
- IBM
- Iron Mountain
- Lumen Technologies
- Meta
- Microsoft
- Quality Technology Services (QTS) Realty Trust
- Stack Infrastructure
- Vantage Data Centers
Section 6—Competitive Landscape
- Water Solution Providers for Data Centers
- Comparing Positioning in the Water for Data Centers Market
- Water for Data Centers Vendor Value Chain
- Aquatech International
- Black & Veatch
- Carollo
- Cerafiltec
- Ecolab
- H2O Innovation
- Kurita
- Veolia
- Veralto
- Xylem
