EP Insight, May 2026 | Veolia: Circular Water Systems for Data Centers

The data centers powering AI innovations and cloud computing generate substantial heat and require millions of gallons of water for cooling, often sourced from municipal or groundwater supplies. [1]  As climate-driven water scarcity intensifies, companies are under growing pressure to balance rapid infrastructure expansion with responsible water stewardship.

In April 2026, French utility company, Veolia, announced a strategic collaboration with Amazon Web Services (AWS) to develop a reclaimed-water cooling system for Amazon data centers in Mississippi, helping reduce reliance on freshwater and supporting more sustainable digital infrastructure. [2] The first facility is expected to become operational in 2027 and will be the first Amazon data center in the state to use reclaimed water for cooling instead of groundwater or potable water supplies.

The initiative centers on Veolia’s Data Center Resource 360 offering, which uses modular, containerized treatment systems to convert wastewater into high-quality cooling water suitable for industrial use. [3] When fully operational, the system is projected to reuse more than 83 million gallons of potable water each year – roughly equivalent to the annual water consumption of 760 U.S. homes – reducing demand on local drinking water and groundwater resources. [4]

A key feature of the approach is its scalability. Veolia’s modular treatment systems can be implemented across multiple sites without bespoke infrastructure builds, enabling the same solution to be replicated across Amazon’s global data center network where conditions permit. This allows water reuse to move beyond isolated projects and become an integrated part of how data center infrastructure is designed and built at scale.

The collaboration also extends beyond physical infrastructure. AWS will support Veolia in integrating artificial intelligence and machine learning into its global water treatment operations, enabling predictive maintenance, real-time optimization, and process improvements. [5] In effect, the partnership creates a reciprocal system: Veolia enables Amazon’s water efficiency goals through reuse technology, while AWS provides digital tools to enhance operational efficiency across Veolia’s global network.

Thus, by closing the loop on water use and embedding digital optimization into resource-intensive systems, Veolia offers a scalable model for more resilient data center development.

If you are interested in reading more about corporate work to lower negative environmental impacts, please see other EP Insights from Terra Alpha here.

[1] Environmental and Energy Study Institute: Data Centers and Water Consumption
[2] Amazon, Veolia Deploy Reclaimed Water Systems to Cut Data Center Water Use by 83M Gallons Annually
[3] Veolia unveils a next-generation integrated offering to revolutionize the future of the data-center industry
[4] Amazon, Veolia Deploy Reclaimed Water Systems to Cut Data Center Water Use by 83M Gallons Annually
[5] Amazon, Veolia Deploy Reclaimed Water Systems to Cut Data Center Water Use by 83M Gallons Annually
Photo: Veolia