Old challenges, new technologies mark the 2026 water landscape — AWWA 2026 association outlook

In 2026, water utilities grapple with aging infrastructure, regulatory demands, and funding uncertainties, while exploring innovative technologies like AI to enhance service delivery and operational efficiency.

Greg Kail

Feb. 24, 2026

2 min read

Key Highlights

Nearly $1.3 trillion is needed over 20 years to upgrade U.S. water infrastructure, with funding challenges due to expiring programs like IIJA and SRFs.
Water utilities are increasingly adopting AI and data-driven strategies to improve operations, address resource challenges, and maintain public trust.
Financial concerns remain paramount, emphasizing the importance of strategic funding sources such as WIFIA and SRFs for infrastructure projects.
The sector is transforming its workforce to include new skills for managing advanced technologies and data analytics.
Future technological advancements are expected to significantly influence how water professionals approach infrastructure renewal and regulatory compliance.

In 2026, water professionals are facing familiar challenges while assessing the promise of transformative new technologies.

But if there is an overriding theme for the sector in 2026, it may be summed up in a recurring question: how will water utilities find address the age-old issue of infrastructure renewal alongside a surge of costly regulatory imperatives?

Infrastructure

The U.S. Environmental Protection Agency (EPA) estimates that drinking water and wastewater systems will need to invest nearly $1.3 trillion over the next 20 years to repair, replace and expand existing infrastructure. With funding from the Infrastructure Investment & Jobs Act (IIJA) due to expire this year, and congressional funding for State Revolving Loan Funds and Water Infrastructure Finance and Innovation Act loans in question, many water systems are facing a financial conundrum.

“AWWA’s 2025 State of the Water Industry Report found that financing for capital improvements and infrastructure renewal and replacement are the top two concerns for water professionals,” said American Water Works Association CEO David LaFrance. “Programs like WIFIA and State Revolving Funds (SRFs) are efficient, strategic funding that keep our communities strong and healthy. They should be celebrated and fully funded.”

AI Opportunity and Impact

As utilities puzzle over keeping water affordable while meeting infrastructure and regulatory costs — lead service line replacement and PFAS treatment among others — 2026 may also be remembered as a year when the water sector accelerated its transformation toward a next-generation, tech-savvy workforce. AWWA’s new white paper, Cooling the Cloud: Water Utilities in a Data-Driven World, points out the immense water resource and planning challenges water utilities face as thirsty data centers are constructed to fuel the AI revolution. The technology these data centers power will touch every corner of utility operations, requiring new strategies and skillsets to harness AI in a way that improves water service and maintains public trust.

AWWA’s 2026 State of the Water Industry Report is due out soon. It will be interesting to see how the promise of future technologies impacts how water professionals feel about the challenges of today.