The global Data Center Water & Wastewater Treatment Equipment market is segmented based on equipment type, treatment stage, water source, cooling technology, data center type, deployment, end user, and region.
AI Data Center Expansion Drives Global Demand for Advanced Water Recycling and Wastewater Treatment Solutions
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LEANDER, Texas: Rising AI Data Center Deployment, Increasing Water Consumption Concerns, and Sustainability-Driven Water Management Investments Accelerate Global Data Center Water & Wastewater Treatment Equipment Market
Global Data Center Water & Wastewater Treatment Equipment Market is experiencing strong growth, driven by the fast development of the AI data centers, increasing water usage concerns, and higher levels of investments in sustainable water infrastructure. Large-scale data centers, cloud computing service providers, and AI data centers use modern water treatment and water recycling equipment to optimize water use and decrease the need for freshwater sources. As seen from the 2025 Sustainability Report of Google, the company restored 4.5 billion gallons of water in 2024, raising the freshwater restoration rate to 64% in comparison to 18% in 2023 and making efforts to restore more water than they consume in their operations till 2030. This means that such sustainability goals have stimulated the demand for modern water treatment and wastewater treatment technologies, namely reverse osmosis equipment, filtration technology, closed-loop cooling water treatment, and water recycling technologies. The increase in the number of reclaimed water systems in large-scale data centers also contributes to the role of water and wastewater treatment equipment in modern digital infrastructure.
The utilization of reclaimed water treatment solutions by hyperscale data center companies shows the growing need for advanced water management systems in order to ensure the sustainability of data center operations. In April 2026, Amazon partnered with Veolia to utilize the innovative water reuse solution at the company’s data center in Mississippi. This will be achieved through the installation of autonomous water treatment container units that will transform the effluent wastewater from neighboring water treatment facilities into high-quality reclaimed water that can be used in the cooling process within the data centers. The data center is estimated to be up and running in 2027 and will reuse over 83 million gallons of potable water per year.
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Key Takeaways
- North America secured the leading position in the industry, accounting for 42% of the global market share in 2025. This regional stronghold is primarily driven by massive infrastructure investments from tech giants like Microsoft, Google, and AWS.
- New greenfield installations dominated the market landscape by capturing 67% of the total market share in 2025. This allows operators to integrate advanced treatment technologies like reverse osmosis and zero liquid discharge directly from the design phase.
- Data centers in India currently consume an estimated 150 billion liters of water each year for cooling operations. Due to the rapid boom in the sector, this figure is projected to skyrocket to 358 billion liters annually by 2030.
- Mega-consortiums are heavily backing AI development, highlighted by OpenAI, Oracle, and SoftBank committing USD 500 billion to the Stargate Project. Meanwhile, Microsoft announced an approximate USD 80 billion investment in AI-enabled data centers for the fiscal year 2025.
Wide-Space Opportunities for the Data Center Water & Wastewater Treatment Equipment Value Chain
In January 2025, OpenAI, a U.S.-based artificial intelligence company, together with SoftBank Group (Japan), Oracle Corporation (U.S.), and MGX (UAE), announced the Stargate Project, a new AI infrastructure company that plans to invest USD 500 billion over the next four years to build AI data centers across the United States. The consortium will immediately deploy USD 100 billion during the initial phase, with the first hyperscale AI campus under development in Texas and additional campuses planned nationwide. SoftBank and OpenAI serve as the lead partners, with SoftBank assuming financial responsibility and OpenAI overseeing operations, while Arm, Microsoft, NVIDIA, Oracle, and OpenAI act as the project's key technology partners. The initiative is expected to create hundreds of thousands of jobs and represents one of the world's largest AI infrastructure investments. As part of the project, OpenAI also issued requests for proposals (RFPs) and qualifications (RFQs) for land acquisition, power infrastructure, architecture, engineering, and data center construction, creating substantial opportunities for infrastructure and utility suppliers.
The investment is expected to create significant procurement opportunities across the Data Center Water & Wastewater Treatment Equipment value chain. Water treatment and recycling companies, including Ecolab, Veolia Water Technologies, Xylem, Kurita Water Industries, SUEZ Water Technologies & Solutions, DuPont Water Solutions, Gradiant, Ovivo, and Pentair, are well-positioned to secure contracts for cooling water treatment, reverse osmosis (RO), ultrapure water (UPW), wastewater recycling, and zero-liquid discharge (ZLD) systems. Data center cooling and fluid management providers such as Vertiv, Schneider Electric, Johnson Controls, Trane Technologies, Baltimore Aircoil Company (BAC), and CoolIT Systems are expected to benefit from increasing demand for liquid cooling infrastructure and advanced thermal management. In addition, innovative water technology developers, including KMX Technologies, Hydroleap, Industrie De Nora, and Tekleen, are likely to gain opportunities for membrane-based water recovery, electrochemical water treatment, filtration, blowdown recovery, and sustainable water reuse solutions as hyperscale AI data center deployments accelerate across the United States.
Rapid expansion of hyperscale and AI-driven data centers is increasing demand for advanced cooling water treatment and wastewater management systems
The rapid growth of hyperscale data centers, artificial intelligence (AI) computing data centers, and high-performance computing (HPC) technology is creating a significant surge in the demand for innovative Data Center Water & Wastewater Treatment Equipment around the world. This expansion in terms of the implementation of AI workloads and accelerated computing equipment results in increased server density, thus necessitating the use of effective cooling infrastructure, water recirculation equipment, and wastewater treatment equipment to ensure reliable operations and increase water efficiency. As per the International Energy Agency (IEA), electricity consumption in global data centers is estimated to double by 2030 to 945 TWh due to the fast-growing adoption of AI and accelerated computing technology. With an increase in data center capacity, organizations are adopting innovative water management solutions such as reverse osmosis equipment, ultrafiltration equipment, cooling water treatment for a closed loop, and wastewater recycling equipment.
In June 2026, The Times of India reported that the rising use of AI-powered data centers is causing an increased consumption of fresh water because of high cooling needs. The article stressed that one single interaction of an AI data center, for example, a ChatGPT interaction, would lead to the usage of about 519 milliliters of water because of the cooling of servers and electricity-related water consumption. It was also mentioned that the rising AI infrastructure globally would cause increased water needs, thus leading to the requirement of innovative cooling water treatment, water recycling, and wastewater management.
Adoption of Greenfield Data Center Projects Driving Demand for Water & Wastewater Treatment Equipment
Greenfield data center development is one of the largest growing segments in the global Data Center Water & Wastewater Treatment Equipment Market with continuous investments made by hyperscaler companies, cloud services providers, and artificial intelligence infrastructure developers in building new-generation data centers. The New Installations (Greenfield) segment held 67% of the market share in 2025 due to the fast-paced construction of AI, hyperscaler, and cloud data centers across the globe. In comparison to retrofit installations, greenfield installations offer the opportunity to install the cutting-edge water infrastructure right at the stage of designing a facility, which includes RO treatment systems, ultrafiltration technology, water reuse solutions, ZLD systems, digital water quality monitoring, and closed-loop cooling water treatment systems.
The continued expansion of AI infrastructure has further strengthened this segment's leadership. In January 2025, OpenAI, Oracle, and SoftBank announced the Stargate Project, committing US$500 billion over the coming years to develop next-generation AI infrastructure across the United States, with an initial investment of US$100 billion. Similarly, Microsoft announced in 2025 that it would invest approximately US$80 billion in AI-enabled data center infrastructure during fiscal year 2025.
Liquid-Cooled Data Centers Gain Momentum Through Rising AI Workloads, Increasing Rack Density, and Growing Demand for Efficient Water Management Solutions
Liquid-cooled data centers are emerging as one of the fastest-growing segments in the global Data Center Water & Wastewater Treatment Equipment Market, owing to the fast growth in artificial intelligence (AI), high-performance computing (HPC), and cloud infrastructure. With the increased server densities in such facilities, air cooling systems have failed to control the heat produced by computing devices, leading to the preference for using a liquid cooling system that is more energy efficient. The category of data centers that utilize liquid cooling technology witnessed a growth of about 25% in 2025, fueled by the rising usage by hyperscale facilities, AI technology providers, and enterprise facilities.
The rapid growth of AI-driven facilities is further accelerating adoption, as higher-density GPU servers require advanced cooling approaches to maintain operational stability. Companies, including hyperscale cloud providers, are increasingly investing in water-efficient cooling architectures, combining liquid cooling with filtration, wastewater recycling, and water reuse solutions to support long-term sustainability goals. As AI and accelerated computing continue to reshape data center infrastructure, liquid-cooled facilities are expected to become a key growth area, strengthening demand for specialized water and wastewater treatment equipment required for efficient cooling operations.
Rapid Expansion of AI Data Centers and Sustainable Water Infrastructure Driving North American Market Leadership
North America continues dominating the global Data Center Water & Wastewater Treatment Equipment Market, due to fast hyperscale data center construction, investments in infrastructure for AI, and increasing sustainability water management measures in the U.S. and Canada. In 2025, North America took 42% of global market shares because of the availability of huge cloud service providers such as Microsoft, Google, Amazon Web Services (AWS), and Meta, which invest a lot in large-scale data centers that have advanced cooling water treatment, wastewater recycling, and water management systems.
The acquisition reflects the increasing industry focus on advanced fluid management and water treatment technologies to support high-density AI data centers with liquid cooling infrastructure. In November 2025, Vertiv Holdings Co., a U.S.-based digital infrastructure manufacturer and service provider, announced its intention to acquire PurgeRite, a company from the USA, for approximately US$1.0 billion, with an additional earn-out amount of up to US$250 million depending on performance metrics in 2026.
U.S. Maintains Leadership in the Data Center Water & Wastewater Treatment Equipment Market Through Hyperscale Expansion and Advanced Water Management Investments
The U.S. continues to maintain its dominant position in the Data Center Water & Wastewater Treatment Equipment Market because of its hyperscale data center environment, fast-paced adoption of AI-powered infrastructure, and investments in water sustainability solutions. The US is also the biggest contributor to the North American market due to the presence of top cloud and tech giants such as Amazon Web Services (AWS), Microsoft, Google, Oracle, and Meta, among others, who are building more capacity powered by AI in data centers.
In December 2025, Sylmar Group, a U.S.-based industrial water treatment and infrastructure services company, acquired ProChem Water, a U.S.-based company that provides industrial and commercial water and wastewater treatment solutions. This merger enhances Sylmar Group’s capabilities for water treatment chemicals, cooling water treatments, boiler water treatment, wastewater treatment, and water quality services. The Sylmar Group is a mission-critical industry facility with high water management demands, including data centers.
Competitive Landscape and Strategic Developments
The global Data Center Water & Wastewater Treatment Equipment Market is characterized by a technology-driven competitive landscape, with market participants competing based on advanced water treatment capabilities, cooling water management expertise, wastewater recycling solutions, digital monitoring platforms, and the ability to support large-scale hyperscale and AI data center deployments. The market consists of three major participant groups: global water technology providers, industrial water treatment specialists, and membrane & filtration technology manufacturers. Leading companies such as Veolia, SUEZ, Xylem Inc., Ecolab (Nalco Water), Aquatech International, and Kurita Water Industries are strengthening their positions through end-to-end solutions covering water treatment, wastewater reuse, cooling system optimization, and digital water management for hyperscale data centers. Meanwhile, companies including DuPont Water Solutions, Toray Industries, Pentair, and BWT Holding are focusing on advanced membrane technologies such as reverse osmosis (RO), ultrafiltration (UF), ion exchange, and high-purity water treatment systems, while Alfa Laval provides complementary heat transfer and liquid cooling solutions for next-generation data center infrastructure.
In August 2025, Hydroleap, a Singapore-based provider of electrochemical water treatment solutions, raised US$4.75 million in funding to accelerate the deployment of its chemical-free water treatment technology across APAC data centers and industrial sectors.
Key Developments:
- In June 2026, Vertiv Holdings Co., a U.S.-based critical digital infrastructure manufacturer and service provider, launched Vertiv™ PurgeRite™ NearZero™, a fluid management service designed for data center cooling system commissioning. The solution integrates water recycling, reverse osmosis, filtration, engineered flushing, and water quality monitoring, delivering up to 78% reduction in water consumption, up to 91% reduction in water haul-off volume, and up to 34% reduction in discharge management costs, supporting sustainable water management in AI-driven data centers.
- In December 2025, KMX Technologies, a U.S.-based water treatment technology company, launched its Vacuum Membrane Distillation (VMD) platform for liquid-cooled data centers.
- In February 2026, Tekleen, a U.S.-based manufacturer of automatic self-cleaning water filtration systems, launched its Full-Flow Filtration and Dewatering Strategy for data center cooling systems.
Leading Company Profiles and Strategic Developments
Ecolab (U.S.)
Ecolab is one of the leading companies in the global Data Center Water & Wastewater Treatment Equipment Market, supported by its extensive expertise in industrial water management, cooling water optimization, wastewater treatment, and digital water monitoring solutions through its Nalco Water business. The company has established a strong position by providing integrated water management solutions for hyperscale data centers, cloud infrastructure providers, and mission-critical facilities that require efficient cooling operations and sustainable water usage. Ecolab’s capabilities in water quality management, predictive analytics, chemical treatment programs, and resource optimization enable data center operators to improve cooling efficiency, reduce freshwater consumption, and enhance operational reliability.
In July 2026, Ecolab Inc., a U.S.-based sustainability and water treatment solutions company, completed its acquisition of CoolIT Systems, a Canadian-based provider of direct liquid cooling solutions, for approximately US$4.75 billion.
Analyst Opinion
The Data Center Water & Wastewater Treatment Equipment Market is moving beyond being a supporting infrastructure segment and is becoming a strategic requirement for the next generation of data centers. In my view, the biggest shift in this market is not simply the increase in data center construction, but the change in how operators approach water consumption. The rapid growth of AI workloads is pushing data centers toward higher rack densities and more intensive cooling requirements, making traditional water management approaches insufficient. Operators are increasingly viewing advanced water treatment, recycling, and closed-loop cooling systems as critical investments rather than optional sustainability initiatives. The market opportunity is particularly strong in greenfield AI and hyperscale data center projects, where developers can integrate water-efficient infrastructure from the initial design phase. Technologies such as reverse osmosis, ultrafiltration, reclaimed water systems, digital water monitoring, and zero liquid discharge solutions are expected to gain wider adoption as companies face increasing pressure from regulators, local communities, and investors to reduce freshwater dependency. North America, especially the U.S., is likely to remain the leading market due to the concentration of hyperscale operators and aggressive AI infrastructure expansion. However, future growth will increasingly depend on regions facing water stress, such as parts of the Asia-Pacific and the Middle East, where sustainable cooling solutions will become a key factor in data center site selection.
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