As utilities across the U.S. face growing demand from data centers, semiconductor manufacturing and other large industrial users, water leaders say long-term planning, water reuse and stronger collaboration are becoming essential tools for balancing economic growth with water security.

Those themes emerged during a panel discussion titled “How utilities partner with traditional and emerging water users for sustainable growth,” featuring representatives from the City of Columbus, Ohio, Texas Instruments (TI), Archer Daniels Midland (ADM) and Amazon Web Services (AWS).

Panelists described how rapid industrial expansion is reshaping water demand forecasts in many communities. In Columbus, Assistant Administrator Brian Amberley said the utility has seen significant growth from hyperscale data centers and advanced manufacturing projects since 2016, requiring new approaches to infrastructure planning and water supply management. The city considers itself supply-constrained despite its Midwest location and is conducting long-range planning studies while expanding treatment capacity.

Water reuse was a recurring topic throughout the discussion. Columbus is evaluating nonpotable reuse opportunities and commissioned a study to examine treatment requirements, pipeline routing and potential customers. However, Amberley noted that Ohio currently lacks a comprehensive regulatory framework for large-scale reuse projects, creating challenges for implementation.

AWS Principal of Water Strategy Usman Khan said reclaimed water is becoming increasingly important for data center cooling. According to Khan, AWS currently operates 26 facilities using reclaimed water and expects that number to grow to 130. He noted that regulatory requirements vary significantly by state, often influencing how quickly reuse projects can move forward.

Panelists also highlighted practical barriers to reuse, including infrastructure costs, water quality requirements and public perception. Columbus officials noted that transporting reclaimed water to emerging industrial corridors can require extensive pipeline infrastructure and pumping capacity. Industrial users such as TI said successful reuse projects often depend on consistent water quality and guaranteed supply volumes.

Several speakers stressed that early communication between utilities, industries and local governments is critical. Amberley said Columbus recently declined a proposed data center project because the utility could not reliably serve the requested location, illustrating the need for water availability assessments early in the site-selection process.

The discussion concluded with a common message: future growth will require coordinated investments in water infrastructure, expanded reuse programs and collaborative planning that begins well before new facilities break ground.