Data Centers: Understanding Economic Considerations and Opportunities for Water and Wastewater Utilities

The Water Research Foundation (WRF) is seeking proposals for a project titled "Data Centers: Understanding Economic Considerations and Opportunities for Water and Wastewater Utilities." As part of its Research Priority Program, WRF has allocated up to $200,000 to fund research that explores the intersection of data center development and water utility economics. This opportunity addresses the growing pressure data centers place on local water infrastructure and aims to equip utilities with tools to make informed planning and financial decisions. This research responds to the rapid proliferation of data centers due to advancements in cloud computing, artificial intelligence, and digital commerce. These facilities often become among the largest water consumers in a region, with complex demand patterns influenced by seasonal variation and the types of cooling technologies employed. WRF identifies a critical need for standardized information sharing between utilities and data centers, as well as for economic models that mitigate the risk of stranded infrastructure and support cost recovery should a data center relocate or shift its water usage. The project requires a comprehensive literature, policy, and practice review, analyzing water and energy needs, influent quality requirements, cooling methods, and potential co-benefits such as heat recovery or reclaimed water use. The review must also consider corporate sustainability commitments and emerging trends that affect water demand and utility engagement. The second core component involves structured engagement with utility representatives from diverse geographies to capture best practices and concerns related to financial arrangements, risk-sharing, and community communication. Deliverables must include a Utility Decision Toolkit with model contract clauses, rate structure alternatives, and planning frameworks. Proposers must also prepare a final research report using WRF's template, policy review, engagement templates, and a communication plan inclusive of presentations and journal publication. Proposals should follow WRF's submission guidelines and include a cost match of at least 33% of the total award. Eligibility is open to both U.S. and international entities, including educational institutions, research organizations, government bodies, and for-profit firms. All proposals must be submitted online no later than 3:00 PM Mountain Time on Thursday, November 20, 2025. Questions about the RFP should be directed to Sydney Samples at ssamples@waterrf.org or 571.384.2108. The anticipated project period is 18 months from contract initiation, and compliance with federal grant administration standards is required. This grant opportunity is recurring and part of WRF’s long-term investment in equipping utilities to respond to evolving technological and environmental challenges. Interested applicants should act promptly, ensuring full adherence to the detailed proposal and eligibility requirements outlined by WRF.

Emphasize responsiveness to RFP objectives; include strong financial models and engagement strategies.