Data Center Water & Wastewater Treatment Equipment Market Report | 2026-2032

Market Size & Opportunities

Global Demand Analysis & Sales Opportunities in Data Center Water & Wastewater Treatment Equipment Market 

• The annual demand for data center water and wastewater treatment equipment was USD 6.5 billion in 2025 and is expected to reach USD 7.4 billion in 2026, up 14.4% than the value in 2025. 

• During the forecast period (2026-2032), the market is expected to grow at a CAGR of 13.2%. The annual demand will reach USD 15.6 billion in 2032, which is almost 2.4 times the demand in 2025. 

• Hyperscale is expected to remain the dominant data center type segment throughout the forecast period.

• Chemical Treatment & Conditioning Systems are expected to remain the dominant equipment type segment throughout the forecast period.

• Cooling Water Treatment is expected to remain the dominant treatment stage segment throughout the forecast period.

• Europe is expected to be the fastest-growing regional market during the forecast period.

“According to the Senior Analyst at Stratview Research, the global data center water and wastewater treatment equipment market will generate a cumulative sales opportunity worth USD 78.3 billion during 2026-2032. During the forecast period, Hyperscale, Membrane & High-Purity Water Systems, Water Reuse & Recovery, & Europe are some of the high-opportunity segments to bank upon.”

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Market Statistics

Have a look at the sales opportunities presented by the data center water and wastewater treatment equipment market in terms of growth and market forecast. 

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Market Dynamics

The data center water and wastewater treatment equipment market is evolving as data center operators face rising cooling-water requirements, water scarcity concerns, and increasing pressure to improve water efficiency. The market trend toward water reuse, recycling, and advanced treatment technologies is reshaping water management practices across data center facilities. A detailed market analysis highlights the key drivers, challenges, and opportunities influencing the market’s growth through the forecast period.

Expansion of Hyperscale Data Center Infrastructure

The rapid expansion of hyperscale data centers is increasing the need for reliable water supply, cooling-water management, and wastewater treatment systems at large-scale facilities. As operators add capacity to support AI, cloud, and high-performance computing workloads, rising water-management requirements are supporting market growth for treatment, recycling, and water-efficiency equipment.

• According to the International Energy Agency’s 2026 analysis, capital expenditure by five large technology companies exceeded USD 400 billion in 2025 and is expected to increase by 75% in 2026, reflecting continued investment in large-scale data center infrastructure. This accelerating build-out requires supporting utility systems, including water treatment, recycling, and wastewater management infrastructure, particularly where new facilities place additional pressure on local water resources.

• Microsoft announced in June 2026 that its new Pecos, Texas, data center campus will add approximately 2 GW of global data center capacity over the next five to seven years. The facility will use closed-loop cooling to minimize ongoing water consumption, demonstrating how hyperscale expansion is increasing the need for advanced water-management systems that can support cooling operations while reducing freshwater requirements.

Rising AI Workloads and High-Density Computing

The rapid deployment of AI and high-performance computing is increasing computational intensity and power density within data centers, resulting in substantially higher cooling and water-management requirements. As operators deploy more GPU-intensive infrastructure, the resulting thermal loads are strengthening market demand for advanced water treatment, cooling-water management, and wastewater systems capable of supporting high-density facilities.

• Microsoft’s April 2026 research on AI data center infrastructure finds that high-density GPU racks generate 4–8 times more heat per rack than CPU-based systems. The higher thermal load pushes conventional air cooling toward its limits, increasing the need for liquid-cooling architectures and associated water-management systems, thereby supporting demand for advanced treatment and recycling equipment.

• Microsoft reported in June 2026 that its average data center water-use effectiveness improved to 0.27 L/kWh in 2025, down from 2.3 L/kWh in its early data center generations, as it continues scaling cloud and AI services. The shift toward more water-efficient cooling and closed-loop systems increases the need for water treatment and recycling technologies that can maintain coolant quality while minimizing freshwater consumption.

• The U.S. Department of Energy’s COOLERCHIPS 1.5 program, announced in August 2026, is supporting advanced cooling technologies designed to manage heat loads of up to 1 MW per rack for AI applications. The program specifically targets water-free and highly efficient cooling systems, highlighting the need for advanced water-management technologies that can support high-density computing while reducing freshwater consumption and wastewater generation.

“As per the analyst, the global data center water and wastewater treatment equipment market is evolving rapidly. While conducting the market analysis and speaking with leading industry players, the next decade will be shaped by trends such as water reuse and recycling, rising demand for water-efficient cooling solutions, and the adoption of advanced wastewater treatment technologies.”

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Market Challenge

Water Scarcity and Availability Constraints

The increasing concentration of data centers in water-stressed regions is making it more difficult for operators to secure reliable freshwater supplies for cooling and other facility operations. This constraint can increase the complexity and cost of water sourcing, treatment, recycling, and wastewater management, creating a key challenge for market growth.

• India’s Ministry of Jal Shakti stated in March 2026 that data center capacity in India had increased from 375 MW in 2020 to more than 1,500 MW in 2025. The ministry noted that data centers are adopting direct-to-chip liquid cooling, adiabatic cooling, and immersion cooling to improve water efficiency, while environmental assessments consider freshwater availability, water-stressed regions, greywater generation, recycling, and reuse. This shows how rapid data center expansion is increasing the need for integrated water-management and treatment solutions.

Rising Energy Intensity and Operating Costs

The growing energy intensity of data centers is increasing the cost and operational complexity of cooling and water-management systems. As facilities seek to control electricity consumption while maintaining reliable cooling and water quality, these cost pressures are creating a challenge for market growth and encouraging operators to improve treatment-system efficiency.

• The U.S. Department of Energy’s 2025 Data Center Energy Usage Report estimates that U.S. data centers could consume 649 TWh of electricity by 2030, equivalent to 11.8% of total U.S. electricity consumption, with the range reaching 15.3% under a high-growth scenario. Rising electricity requirements increase the operating burden of energy-intensive cooling and water-treatment systems, making energy efficiency and optimized water management increasingly important for data center operators.

Market Opportunities

Growing Investment in Water Reuse and Recovery Systems

The increasing focus on reducing freshwater consumption is encouraging data center operators to invest in water recycling, recovery, and reuse technologies. As facilities seek to operate cooling systems with less reliance on freshwater, these investments are creating a market opportunity for advanced treatment equipment that can recover and reuse water from cooling and wastewater streams.

• Microsoft reported in 2026 that its data centers use 100% zero-water-evaporation cooling designs for new facilities, with the approach expected to avoid more than 125 million liters of water annually per data center. The shift toward closed-loop cooling demonstrates growing investment in water-efficient infrastructure and creates opportunities for treatment and water-quality management systems that enable repeated reuse within data center operations

Shift Toward Non-Potable Water Sources

Growing pressure to reduce freshwater dependence is encouraging data center operators to explore reclaimed, recycled, and other non-potable water sources for cooling operations. This market trend is creating opportunities for treatment and purification equipment capable of conditioning alternative water streams to the quality required for reliable data center cooling.

The U.S. Environmental Protection Agency (EPA) reported in April 2026 that more than 745 million gallons of recycled water were supplied in 2025 to support cooling at data centers in Loudoun County, Virginia. The growing use of reclaimed water demonstrates the shift toward alternative cooling-water sources and is increasing the need for filtration, purification, disinfection, and other treatment systems capable of preparing non-potable water for data center operations

Segments’ Analysis

By Data Center Type

“Hyperscale segment is projected to be the dominant and fastest-growing segment during the forecast period.”

• The data center water and wastewater treatment equipment market is segmented by data center type into hyperscale, colocation, and enterprise data centers.

• Hyperscale data centers are projected to remain the dominant segment during the forecast period, supported by their large-scale infrastructure, high cooling requirements, and extensive need for water treatment, wastewater management, and water reuse systems.

• Hyperscale data centers are also projected to be the fastest-growing segment during the forecast period, driven by continued expansion of large-scale cloud, AI, and high-performance computing infrastructure, which is increasing the need for advanced water management systems.

By Equipment Type

“Chemical Treatment & Conditioning Systems segment is projected to be the dominant segment, while Membrane & High-Purity Water Systems is projected to be the fastest-growing segment during the forecast period.”

• The data center water and wastewater treatment equipment market is segmented by equipment type into chemical treatment & conditioning systems, membrane & high-purity water systems, filtration systems, disinfection systems, and other equipment types.

• Chemical treatment & conditioning systems are projected to remain the dominant segment during the forecast period, supported by their widespread use in maintaining water quality, controlling contaminants, and protecting cooling systems from scaling, corrosion, and other operational issues.

• Membrane & high-purity water systems are projected to be the fastest-growing segment during the forecast period, driven by the increasing need for efficient water use, improved water quality, and advanced water reuse solutions across data center facilities.

By Treatment Stage

“Cooling Water Treatment segment is projected to be the dominant segment, while Water Reuse & Recovery is projected to be the fastest-growing segment during the forecast period.”

• The data center water and wastewater treatment equipment market is segmented by treatment stage into pretreatment & purification, cooling water treatment, wastewater treatment, and water reuse & recovery.

• Cooling water treatment is projected to remain the dominant segment during the forecast period, as effective treatment of cooling water is essential for maintaining thermal performance, protecting equipment, and ensuring reliable data center operations.

• Water reuse & recovery is projected to be the fastest-growing segment during the forecast period, supported by increasing efforts to reduce freshwater consumption, improve water efficiency, and address water scarcity through recycling and recovery systems.

Regional Analysis

“Europe is projected to be the fastest-growing region during the forecast period.”

• Based on region, the data center water and wastewater treatment equipment market has been segmented into North America, Europe, Asia Pacific, and Rest of the World.

• Europe is projected to be the fastest-growing regional market during the forecast period, supported by increasing investment in sustainable data center infrastructure, stringent environmental regulations, and growing emphasis on water conservation and efficient resource management.

• The expansion of hyperscale and colocation data centers across Europe, together with increasing adoption of filtration, membrane systems, cooling water treatment, and water reuse solutions, is further supporting regional market growth.

“Analysis suggests that the Top 10 countries generate >80% of the annual sales for the data center water and wastewater treatment equipment market. A few countries are the demand powerhouses and will drive the regional markets in big ways offering attractive business opportunities.”

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Competitive Landscape

The market is fragmented with the presence of less than 100 global and regional players. Some of the major players also manufacture data center water and wastewater treatment equipment. Leading players hold excellent market positions with a vast product portfolio, a wide distribution network, and years of track record.

The following are the key players in the data center water and wastewater treatment equipment market. 

• IDE Technologies

• Gradiant

• Aquatech International

• Veolia

• Ecolab

• Saltworks Technologies Inc

Note: The above list is not an exhaustive list of the key players in the market. If your company is active in this market and would like to be considered for inclusion in future editions of this study, please contact us at [email protected].   

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Recent Developments/Mergers & Acquisitions

Recent mergers & acquisitions and other developments in the data center water and wastewater treatment equipment market reflect evolving market trends, and impact the market. Below given are a few recent developments in the market – 

• In August 2026, Veolia signed an agreement to acquire CDPQ’s 30% stake in Veolia Water Technologies and Solutions (WTS), moving toward full ownership of the water technology business and strengthening its ability to deliver advanced water treatment, reuse, and desalination solutions, including for data center cooling applications.

• In July 2026, Xylem agreed to acquire WaterFleet, a provider of mobile water and wastewater treatment services, for approximately USD 200 million. The acquisition expands Xylem’s mobile treatment capabilities and strengthens its ability to provide flexible water infrastructure solutions for high-demand applications, including AI data centers.

• In July 2026, Sylmar Group acquired Tower Water, a water treatment provider serving commercial, industrial, and data center customers across the U.S. Northeast. The acquisition expanded Sylmar’s portfolio of cooling-water treatment, wastewater, and water-management services for data center and other critical facilities.

• In April 2026, Veolia partnered with Amazon to develop a reclaimed-water cooling system for Amazon data centers in Mississippi. Veolia will deploy modular water treatment systems to convert wastewater from nearby treatment facilities into cooling water, with the first facility expected to reuse more than 83 million gallons of potable water annually once operational.

• In April 2026, Sylmar Group acquired Aquatrol Services, expanding its industrial water treatment platform into Texas and adding capabilities in cooling-water and related treatment services.

• In April 2026, Gradiant secured a contract to build a water treatment facility for a hyperscale data center in Oxfordshire, supporting water management requirements for a major AI and cloud infrastructure project.

• In January 2026, Sylmar Group acquired Atlantic Water Management, a New England provider specializing in cooling and boiler water treatment programs, strengthening its regional water treatment capabilities for industrial and commercial customers.

• In December 2025, Sylmar Group acquired ProChem Water, a provider of industrial and commercial water and wastewater treatment services. The acquisition expanded Sylmar’s treatment portfolio and added capabilities relevant to cooling-water and wastewater applications.

• In July 2025, Sylmar Group acquired R2J Chemical Services, a Florida-based provider of industrial water treatment solutions, expanding its presence in cooling tower water treatment and other industrial water-management applications.

• In 2025, CRB Water acquired Southeastern Laboratories, expanding its regional reach and adding expertise in sustainable cooling-water treatment and data center application

• In 2025, Amazon Web Services expanded its use of recycled water for data center cooling, including the development of its first recycled-water data center in Hong Kong. AWS also outlined plans to increase the number of data centers using recycled water by 2030, supporting demand for water treatment and reuse systems.

Report Scope

Market Definition

Data center water and wastewater treatment equipment refers to the systems and technologies used to treat, condition, recycle, and manage water associated with data center cooling and facility operations. These solutions include pretreatment and purification, cooling water treatment, wastewater treatment, filtration, disinfection, membrane systems, and water reuse and recovery equipment. The equipment helps maintain water quality, control scaling and corrosion, manage cooling-water blowdown, and enable the reuse of treated water for data center cooling and other non-potable applications.

Report Structure 

This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. 

The following are the key features of the report: 

• Market structure: Overview, industry life cycle analysis, supply chain analysis. 

• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis. 

• Market trend and forecast analysis. 

• Market segment trend and forecast. 

• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc. 

• Attractive market segments and associated growth opportunities. 

• Emerging trends. 

• Strategic growth opportunities for the existing and new players. 

• Key success factors. 

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Segmentation

The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The data center water and wastewater treatment equipment market is segmented into the following categories:

Data Center Water and Wastewater Treatment Equipment Market, By Data Center Type

• Hyperscale Data Center

• Colocation Data Center

• Enterprise Data Centers

Data Center Water and Wastewater Treatment Equipment Market, By Equipment Type

• Chemical Treatment & Conditioning Systems

• Membrane & High-Purity Water Systems

• Filtration Systems

• Disinfection Systems

• Other Equipment Types

Data Center Water and Wastewater Treatment Equipment Market, By Treatment Stage Type

• Pretreatment & Purification Wastewater Treatment

• Cooling Water Treatment Wastewater Treatment

• Water Reuse & Recovery Wastewater Treatment

Data Center Water and Wastewater Treatment Equipment Market, By Region

• North America (Country Analysis: The USA, Canada, and Mexico)

• Europe (Country Analysis: Germany, France, The UK, Russia, and the Rest of Europe)

• Asia-Pacific (Country Analysis: Japan, China, India, and Rest of Asia-Pacific)

• Rest of the World (Country Analysis: Brazil and Others)

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Research Methodology

This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s data center water and wastewater treatment equipment market realities and future market possibilities for the forecast period.

The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market.

The vital data/information provided in the report can play a crucial role for market participants and investors in identifying the low-hanging fruits available in the market and formulating growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.

More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.

We conducted more than 10 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respected clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)

• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances

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