Everyone’s debating chips, power, and demand — but the real bottleneck to the AI build-out may be water.
‍

• Data centers can use up to ~9 liters of water per kWh for cooling
• The U.S. grid generating that electricity withdraws ~43.8 liters per kWh
• Each AI query can consume the equivalent of 1–3 bottles of fresh water once you factor in cooling ($VRT) and power generation ($EME)
• AI water use is projected to reach ~6.6 billion m³ by 2027 — roughly the annual consumption of a small country
• Only ~3% of Earth’s water is fresh, and most is locked in ice
• Saltwater is highly corrosive to metals, and accelerates rust formation and degradation. Sea water use would rapidly deteriorate pumps, pipes, radiators, and other critical components of a cooling system, leading to expensive and frequent replacements. Specialized, corrosion-resistant materials are costly and require more complex maintenance.
• 1.1B people already lack clean water, and 2.7B face water scarcity at least one month a year
• Nearly half the world may face severe water stress by 2030

‍

This isn’t a niche ESG story — it is a real physical constraint on AI scaling.
‍

And the timing just showed up in earnings:
‍

• American Water (AWK) posted strong Q3 results
• Announced a merger with Essential Utilities (WTRG)
• Laid out a $19–$20B capex plan for 2026–2030 and $46–$48B through 2035
  ‍

That is the first big, public signal that U.S. water infrastructure spending is about to collide with AI’s cooling demand.
‍

If water becomes the gating factor — not chips, not power — then the trade shifts to water utilities, metering, reuse, and rights.

‍

Investor Angle - Level 2 Exclusive Breakdown

‍

Water Treatment & Purification

• WAT – Lab-grade testing and analytics
• XYL – Advanced systems for wastewater reuse and treatment
• ECL – Industrial water chemistry solutions
• GE Vernova spinout (projected 2026) – Desalination/turbine-water tech potential

‍

Reuse & Recycling (Zero-Liquid Discharge, Onsite Systems)

• AQUA – Evoqua (now part of Xylem) focused on industrial reuse
• CDZI – Cadiz Inc. (water conveyance + desert supply reuse)
• CLW – Clean Harbors-like industrial cleanup players (waste-to-water tech adjacency)

‍

Leak Detection & Smart Infrastructure

• Itron (ITRI) – Smart metering, leak monitoring
• Trimble (TRMB) – Geospatial sensing for water system mapping
• Badger Meter (BMI) – Water metering and pressure intel at scale

‍

Engineering & EPC for Water + Data Center Siting

• ACM – AECOM (large-scale desalination, wastewater, and data center planning)
• TTEK – Tetra Tech (high-end water consulting + reuse system design)
• Jacobs (J) – Water-energy-data projects globally

‍

Regulated Utilities Scaling for AI Demand

• AWK, WTRG, AWR – Largest U.S. regulated water utilities, strong rate-base plans
• PCG – Power + water constraints around large AI campuses in California
• Watch for utilities that file for “AI/Data Center” usage tariffs or non-potable cooling zones — early signs of where data + water will collide