Data Center Water & Wastewater Treatment Equipment Market
Data Center Water & Wastewater Treatment Equipment Market by Data Center Type (Hyperscale, Colocation, Enterprise), by Equipment Type, by Treatment Stage (Pretreatment & Purification, Cooling Water Treatment), and Region - Global Forecast to 2031
OVERVIEW
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
The Data Center Water and Wastewater Treatment Equipment Market is projected to grow from USD 3.30 billion in 2026 to USD 5.90 billion in 2031 at a CAGR of 12.3% during the forecast period. It is projected that the global market will register notable growth over the forecast period, owing to the rising requirement for effective water management, improved cooling efficiency, and sustainability initiatives at data centers. Some of the key reasons expected to fuel market demand include the rising number of hyperscale data centers, increased deployment of cutting-edge cooling solutions, and investment in water management and recycling infrastructure. It is important to note that data center operators require specific water treatment equipment to ensure the availability of high-quality water, the safety of cooling resources, enhanced operational efficiency, and compliance with stringent environmental standards. The growing awareness of water shortages and the regulations aimed at achieving sustainable targets are also driving the adoption of water recycling and recovery systems, especially in water-scarce areas.
KEY TAKEAWAYS
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BY REGIONEurope is the fastest-growing market, with a CAGR of 16.3% during the forecast period.
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BY DATA CENTER TYPEHyperscale is the largest and fastest-growing data center segment, with a CAGR of 15.3%.
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BY EQUIPMENT TYPEMembrane & high-purity water systems form the fastest-growing equipment type segment, with a CAGR of 17.0% during the forecast period.
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BY TREATMENT STAGECooling water treatment is the largest segment in the market, by treatment stage.
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COMPETITIVE LANDSCAPEProduct innovation, capacity expansions, and collaborations among global leaders, such as Veolia (France), Ecolab Inc. (US), and Xylem (US), have strengthened their market positions.
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COMPETITIVE LANDSCAPEEasyWater (US), JETCOOL Technologies Inc. (US), and Hitachi Energy Ltd (Switzerland) are considered prominent emerging players/SMEs in the market.
Various factors have led to the development of the Data Center Water and Wastewater Treatment Equipment market. Among them are the need for efficient water management, improvements in cooling processes, and sustainability initiatives. One of the leading drivers influencing the dynamics in this field is the rapid development of hyperscale and colocation data centers. For their smooth operation, special water treatment equipment should be installed. The other driver is increased investment in cloud computing, artificial intelligence, and digital transformation, as these trends boost construction activities in data centers, resulting in growth in demand for treatment equipment designed to handle cooling water, wastewater, and reused water. Regarding environmental issues, the increase in water scarcity, as well as stricter regulations on water usage, compels facility operators to implement new technologies that allow them to conserve water and minimize the amount of fresh water consumed. Sustainability and green initiatives also encourage facility owners to invest in technologies related to water reuse and recovery.
TRENDS & DISRUPTIONS IMPACTING CUSTOMERS' CUSTOMERS
Due to evolving sustainability demands, intensified computing operations, and shifts in water management approaches, the market is experiencing numerous trends and disruptions. One of the main trends is the proliferation of equipment designed to increase water efficiency while ensuring effective cooling. Sustainability targets set by environmental legislation and business organizations alike are driving further investment in innovative water reuse and recovery systems, especially in areas experiencing water stress. A sharp increase in the number of large-scale facilities and the growth of AI-based computing operations have led to rising demand for cutting-edge treatment technologies and infrastructure capable of handling high-density computing operations. Digital water management, automated monitoring and management, and predictive maintenance are other trends emerging in the market, driven by ongoing improvements in equipment performance. In addition, high capex, tight permit requirements, and water supply issues are affecting project viability and investment. The development of many large-scale facilities across Europe has impacted regional demand dynamics and technology deployment processes.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
MARKET DYNAMICS
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Hyperscale Data Center Expansion Accelerates Demand for Water Treatment Infrastructure

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AI and High-density Computing Drive Demand for Advanced Cooling Water Treatment Solutions
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High Capital Expenditure Requirements Restrain Adoption of Advanced Treatment Systems
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Complexity of Retrofitting Treatment Systems into Existing Data Centers
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Water Reuse & Recovery Investments Create New Growth Opportunities
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Adoption of Alternative Water Sources Expands Demand for Advanced Treatment Equipment
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Water Scarcity and Local Resource Constraints Impact Data Center Development
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Rising Energy and Operating Costs Affect Total Cost of Water Treatment Operations
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Drivers : Hyperscale Data Center Expansion Accelerates Demand for Water Treatment Infrastructure
The rapid expansion of hyperscale data centers worldwide is a key factor driving the Data Center Water and Wastewater Treatment Equipment Market. Large-scale facilities require significant volumes of treated water to support cooling operations, maintain equipment reliability, and ensure uninterrupted performance. As cloud service providers and technology companies continue investing in hyperscale capacity to meet growing digital demand, investments in water treatment infrastructure are increasing across both new and existing facilities.
Restraints: High Capital Expenditure Requirements Restrain Adoption of Advanced Treatment Systems
Advanced water and wastewater treatment systems often require significant upfront investment for equipment procurement, system integration, installation, and supporting infrastructure. Data center operators seeking to improve water efficiency, comply with environmental requirements, and support high-performance cooling operations may need to deploy sophisticated treatment solutions across multiple stages of water management. These investments can increase overall project costs, particularly for new facilities and large-scale expansions. As a result, budget constraints and concerns regarding return on investment may delay purchasing decisions or limit the adoption of advanced water treatment technologies, thereby restraining market growth to some extent.
Opportunities: Water Reuse & Recovery Investments Create New Growth Opportunities
Growing concerns regarding water scarcity and sustainability are creating substantial opportunities for water reuse and recovery solutions within data centers. Operators are increasingly seeking technologies that reduce freshwater dependence and improve water efficiency across facility operations. As organizations establish ambitious environmental goals and governments promote responsible water management practices, investments in water reuse and recovery infrastructure are expected to accelerate, creating attractive growth prospects for equipment suppliers and technology providers.
Challenges: Water Scarcity and Local Resource Constraints Impact Data Center Development
Water availability has become an important challenge for data center operators, particularly in regions experiencing drought conditions or increasing resource stress. Community concerns regarding industrial water consumption are influencing site selection decisions and creating additional scrutiny for new projects. As a result, operators must balance growing computing demands with responsible water management practices, often requiring significant investments in advanced treatment solutions and alternative water sourcing strategies.
DATA CENTER WATER & WASTEWATER TREATMENT EQUIPMENT MARKET: COMMERCIAL USE CASES ACROSS INDUSTRIES
| COMPANY | USE CASE DESCRIPTION | BENEFITS |
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Water and wastewater treatment solutions for data centers, including cooling water management, water reuse & recovery, wastewater treatment, and sustainability-focused water infrastructure. | Improves water efficiency, reduces freshwater consumption, supports regulatory compliance, enhances cooling system reliability, and enables sustainable facility operations. |
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Water management and treatment solutions used to optimize cooling water systems, improve operational performance, and support resource conservation in data center facilities. | Enhances water utilization efficiency, reduces operating costs, improves asset protection, supports sustainability goals, and enables data-driven water management. |
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Water treatment and management technologies applied across cooling water treatment, wastewater treatment, and water reuse applications in data centers and critical infrastructure facilities. | Improves water quality, increases system reliability, supports efficient resource utilization, reduces operational risks, and strengthens long-term infrastructure performance. |
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Specialty water treatment solutions used to maintain cooling system performance, optimize water quality, and support sustainable water management across data center operations. | Improves cooling efficiency, protects critical equipment, reduces water-related operational issues, supports compliance requirements, and enhances overall facility performance. |
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET ECOSYSTEM
The ecosystem encompasses the interactions among stakeholders involved in the planning, procurement, implementation, operation, and maintenance of water treatment equipment for data centers. It includes manufacturers of treatment systems, technology providers, engineering and systems integration firms, data center owners, and service providers. Equipment manufacturers produce and supply various systems, such as chemical treatment and conditioning, membranes and high-purity water, filtration, and disinfection, all supporting water quality management in data centers. Engineering firms offer design, installation, and optimization services for these systems, while service providers handle ongoing maintenance and operations. Key end users are hyperscale, colocation, enterprise, and telecommunications or edge data centers. The equipment is used in pretreatment, purification, cooling water treatment, wastewater management, and water reuse systems within data centers.
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET SEGMENTS
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Data Center Water and Wastewater Treatment Equipment Market, By Data Center type
The market comprises hyperscale, colocation, enterprise, and other data center types. Hyperscale data centers dominate the market share due to their large-scale infrastructure, high cooling requirements, and extensive water management systems. To support their sustainable operations, these centers rely on advanced water treatment technologies such as cooling water treatment, wastewater treatment, and water reuse. Colocation data centers, which provide infrastructure services to third-party clients, also form an important segment. Additionally, enterprise data centers remain a significant demand source, as some companies maintain their own critical computing facilities. All these data center types require robust water treatment solutions to operate efficiently, sustainably, and in compliance with legal standards.
Data Center Water and Wastewater Treatment Equipment Market, By Equipment type
Chemical treatment & conditioning systems hold the largest share among equipment types because of their widespread use in improving water quality for purposes like cooling, which also boosts facility reliability by preventing operational failures. Similarly, filtration systems are a key segment due to their extensive application in water pretreatment, cooling, wastewater treatment, and water reuse. These systems maintain water quality, protect cooling infrastructure from contamination, reduce contaminant levels, and improve operational reliability. Membrane & high-purity water systems are the fastest-growing segment, driven by increasing adoption due to the rising need for efficient water use, enhanced water quality, and water reuse.
Data Center Water and Wastewater Treatment Equipment Market, By Treatment Stage
Cooling water treatment is the leading market category because cooling is an indispensable process for maintaining optimal operating temperatures and preventing disruptions in data center operations. Efficient cooling water treatment improves system efficiency and protects data center equipment from adverse impacts. The second important category of the market is wastewater treatment, which enables proper management and regulation of water discharges at data centers. The pretreatment and purification category is popular across data centers because it enhances the quality of incoming water. Moreover, proper pretreatment and purification of water facilitates subsequent treatment processes. Water reuse and recovery are emerging as the fastest-growing category due to increasing efforts to reduce freshwater consumption, improve sustainability performance, and address water scarcity.
REGION
Europe to be the fastest-growing region during the forecast period
Europe is expected to be the fastest-growing regional market due to increasing investment in sustainable data center infrastructure, stringent environmental regulations, and a growing focus on water conservation. The region is witnessing rapid growth in hyperscale and colocation facilities driven by cloud computing, artificial intelligence, and digital transformation initiatives. European data center operators are increasingly adopting advanced water treatment technologies, including cooling water treatment, filtration, membrane systems, and water reuse solutions, to improve operational efficiency and meet sustainability targets. Additionally, growing concerns regarding water availability, stricter wastewater discharge standards, and government initiatives promoting green infrastructure are accelerating the adoption of efficient water management systems. The presence of leading technology providers and increasing demand for environmentally responsible data centers further support Europe’s strong market growth trajectory.

DATA CENTER WATER & WASTEWATER TREATMENT EQUIPMENT MARKET: COMPANY EVALUATION MATRIX
Veolia (Star) leads with a strong market presence, a comprehensive water treatment portfolio, and extensive involvement in cooling water, wastewater, and water reuse applications across data center facilities. Kurita America Inc. (Emerging Leader) is strengthening its position through advanced water management solutions, technology innovation, and growing adoption among data center operators seeking improved efficiency and sustainability.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
KEY MARKET PLAYERS
- Veolia (France)
- Ecolab Inc. (US)
- Xylem (US)
- Solenis (US)
- Saltworks Technologies Inc. (Canada)
- Aquatech International LLC (US)
- Kurita America Inc. (US)
- Gradiant (US)
- Lenntech B.V. (Netherlands)
- IDE Technologies (Israel)
MARKET SCOPE
| REPORT METRIC | DETAILS |
|---|---|
| Market Size in 2025 (Value) | USD 2.80 Billion |
| Market Size in 2026 (Value) | USD 3.30 Billion |
| Market Forecast in 2031 (Value) | USD 5.90 Billion |
| Growth Rate | CAGR of 12.3 % from 2026–2031 |
| Years Considered | 2022–2031 |
| Base Year | 2025 |
| Forecast Period | 2026–2031 |
| Units Considered | Value (USD Million/Billion) |
| Report Coverage | Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
| Segments Covered |
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| Regions Covered | North America, Europe, Asia Pacific, Rest of the World |
WHAT IS IN IT FOR YOU: DATA CENTER WATER & WASTEWATER TREATMENT EQUIPMENT MARKET REPORT CONTENT GUIDE

DELIVERED CUSTOMIZATIONS
We have successfully delivered the following deep-dive customizations:
| CLIENT REQUEST | CUSTOMIZATION DELIVERED | VALUE ADDS |
|---|---|---|
| Country-Level Breakdown | In addition to regional coverage, the report provides country-specific analysis for key data center markets, including the US, Canada, Germany, the UK, the Netherlands, India, Japan, Singapore, and Australia. The analysis includes data center capacity additions, hyperscale and colocation investments, water availability considerations, regulatory frameworks, sustainability initiatives, and adoption of water and wastewater treatment equipment across major facilities. | Helps stakeholders identify high-growth national markets, understand data center development trends, assess water infrastructure requirements, evaluate regulatory impacts, and forecast country-level demand for water and wastewater treatment equipment with greater accuracy. |
| Application-Specific Deep Dive | Customized analysis of equipment demand across Pretreatment & Purification, Cooling Water Treatment, Wastewater Treatment, and Water Reuse & Recovery applications. Each segment is evaluated based on adoption trends, operational importance, sustainability impact, regulatory requirements, technology penetration, and future demand outlook. | Enables clients to prioritize high-growth applications such as cooling water treatment and water reuse & recovery, align product strategies with evolving sustainability requirements, and optimize investment and expansion decisions. |
| Material & Processing Segmentation | Comparative analysis of Chemical Treatment & Conditioning Systems, Membrane & High-Purity Water Systems, Filtration Systems, Disinfection Systems, and Other Equipment Types. Covers technology deployment patterns, operational performance, water efficiency benefits, cost considerations, adoption trends across data center types, and the role of each equipment category within the treatment process. | Supports product portfolio optimization, technology prioritization, investment planning, and identification of equipment categories benefiting from increasing demand for water efficiency, operational reliability, and sustainability-focused infrastructure. |
| Competitive Benchmarking | Detailed profiling of leading global and regional market participants, covering product portfolios, technology capabilities, geographic presence, strategic partnerships, acquisitions, sustainability initiatives, and market positioning. Includes benchmarking of water treatment expertise, technology offerings, data center project involvement, water reuse capabilities, and regional competitive strength. | Provides a clear competitive landscape, helping identify key market participants, technology leadership trends, strategic alliances, expansion activities, and differentiation based on innovation capabilities, sustainability expertise, water management solutions, and global market presence in the Data Center Water and Wastewater Treatment Equipment Market. |
RECENT DEVELOPMENTS
- April 2026 : Veolia partnered with AWS to develop reclaimed-water solutions for data center cooling, combining water-treatment expertise with AI-enabled optimization. The initiative strengthens Veolia's position in sustainable water reuse, wastewater recovery, and closed-loop cooling solutions for hyperscale data centers.
- May 2025 : Ecolab Inc. introduced an advanced cooling management solution designed specifically for AI and high-performance computing data centers. The technology enables real-time coolant monitoring, improves liquid cooling reliability, and supports increasing adoption of direct-to-chip cooling architectures.
Table of Contents
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Methodology
The study involved four major activities in estimating the size of the data center water & wastewater treatment equipment market. Exhaustive secondary research was done to collect information on the market, the peer market, and the parent market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, the market breakdown and data triangulation procedures were used to estimate the market size of the segments and subsegments.
Secondary Research
In the secondary research process, various sources have been consulted to identify and collect information for this study. These secondary sources include annual reports, press releases, company investor presentations, white papers, certified publications, trade directories, articles by recognized authors, gold-standard and silver-standard websites, and databases.
Secondary research has been used to obtain key information about the industry value chain, the market monetary chain, the total pool of key data center water & wastewater treatment equipment players, market classification and segmentation according to industry trends down to the bottom-most level, and regional markets. It was also used to gather information on key developments from a market-oriented perspective.
Primary Research
The data center water & wastewater treatment equipment market comprises several stakeholders in the value chain, which include raw material suppliers, component manufacturers, equipment manufacturers, and system integrators. Various primary sources from the supply and demand sides of the data center water & wastewater treatment equipment market have been interviewed to obtain qualitative and quantitative information. The primary interviewees from the demand side include key opinion leaders in application sectors. The primary sources from the supply side include manufacturers, associations, and institutions involved in the data center water & wastewater treatment equipment industry.
Primary interviews were conducted to gather insights, including market statistics, revenue data from products and services, market breakdowns, market size estimates, market forecasts, and triangulation. Primary research also helped in understanding the various trends related to Equipment type, Treatment Stage, Data Center type, and region. Stakeholders from the demand side, such as CIOs, CTOs, and CSOs, were interviewed to understand the buyer’s perspective on suppliers, products, and component providers, as well as their current use of data center water & wastewater treatment equipment and their future business outlook, which will affect the overall market.
The breakdown of profiles of the primary interviewees is illustrated in the figure below:

Note: Tier 1, Tier 2, and Tier 3 companies are classified based on their market revenue in 2025, as per data available in the public domain, product portfolios, and geographical presence.
Other designations include sales representatives, production heads, and technicians.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
- The top-down approach was used to estimate and validate the size of various submarkets for data center water & wastewater treatment equipment for each region. The research methodology used to estimate the market size included the following steps:
- The key players in the industry have been identified through extensive secondary research.
- The supply chain of the industry has been determined through primary and secondary research.
- The global market was then segmented into four major regions and validated by industry experts.
- All percentage shares, splits, and breakdowns based on equipment type, treatment stage, data center type, and regions were determined using secondary sources and verified through primary sources.
- All possible parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. This data was consolidated, supplemented with detailed inputs and analysis, and presented in this report.
Data Center Water & Wastewater Treatment Equipment Market : Top-Down and Bottom-Up Approach

Data Triangulation
After arriving at the total market size from the estimation process for data center water & wastewater treatment equipment above, the overall market has been split into several segments and sub-segments. To complete the overall market engineering process and arrive at the exact statistics for all segments and sub-segments, data triangulation and market breakdown procedures have been employed wherever applicable. The data has been triangulated by studying various factors and trends from both the demand and supply sides. Along with this, the market size has been validated by using both the top-down and bottom-up approaches and primary interviews. Hence, for each data segment, there have been three sources: a top-down approach, a bottom-up approach, and expert interviews. The data was assumed correct when the values arrived from the three sources matched.
Market Definition
The data center water & wastewater treatment equipment market refers to the market for specialized water management equipment and systems used in data center facilities to treat, purify, condition, recycle, and manage water resources required for operational processes. These solutions improve cooling system efficiency, maintain water quality, reduce the risks of scaling and corrosion, and enable wastewater treatment and reuse. The market includes chemical treatment and conditioning systems, membrane and high-purity water systems, filtration systems, disinfection systems, and other related equipment deployed across hyperscale, colocation, enterprise, and edge data centers. The market addresses growing requirements for sustainable water consumption, regulatory compliance, operational reliability, and resource optimization as data centers expand globally and adopt advanced cooling technologies.
Key Stakeholders
- Water treatment equipment manufacturers: Companies providing chemical treatment and conditioning systems, membrane and high-purity water systems, filtration systems, disinfection systems, wastewater treatment equipment, and water reuse technologies for data center cooling and operational water management.
- Data center operators: Hyperscale cloud providers, colocation companies, enterprise data center owners, and edge data center operators are responsible for selecting and implementing water treatment solutions to ensure cooling reliability, optimize water consumption, and achieve sustainability objectives.
- Cooling system manufacturers and technology providers: Companies supplying cooling infrastructure such as chillers, cooling towers, liquid cooling systems, direct-to-chip cooling solutions, and associated water management technologies that require treated and optimized water systems.
- Engineering, procurement, and construction (EPC) firms: Companies responsible for designing, engineering, integrating, and commissioning water treatment infrastructure within new and existing data center projects, including cooling water systems, wastewater treatment facilities, and water recycling plants.
- Water utilities and municipal authorities: Regional water suppliers and wastewater management organizations involved in providing freshwater resources, reclaimed water infrastructure, discharge approvals, and collaboration on sustainable water reuse initiatives for large-scale data centers.
- Environmental regulators and sustainability bodies: Government agencies, environmental authorities, and regulatory organizations are establishing water consumption standards, wastewater discharge regulations, and sustainability requirements influencing data center water management practices.
- Technology providers and digital water solution companies: Companies offering IoT-based monitoring systems, automation platforms, predictive analytics, and AI-enabled water management solutions to improve treatment efficiency, reduce operational costs, and optimize water usage.
- Investors and financial institutions: Private equity firms, infrastructure investors, and sustainability-focused funds evaluating opportunities in water infrastructure, data center development, and environmental technology solutions driven by increasing demand for sustainable digital infrastructure.
- Industrial water treatment service providers: Companies offering operation and maintenance services, chemical management programs, water quality monitoring, and lifecycle support to ensure the continuous performance of treatment systems in data center facilities.
Report Objectives
- To define, describe, and forecast the size of the data center water & wastewater treatment equipment market, in terms of value
- To provide detailed information regarding the major factors (drivers, opportunities, restraints, and challenges) influencing the growth of the market
- To estimate and forecast the market size based on equipment type, treatment stage, data center type, and region
- To forecast the size of the market with respect to major regions, namely, Europe, North America, Asia Pacific, and the Rest of the World (Middle East & Africa and South America), along with their key countries
- To strategically analyze micromarkets with respect to individual growth trends, prospects, and their contribution to the overall market
- To analyze opportunities in the market for stakeholders and provide a competitive landscape of market leaders
- To track and analyze recent developments such as product launches, collaborations, contracts, acquisitions, and expansions in the market
- To strategically profile key market players and comprehensively analyze their core competencies
Available customizations:
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Tariff and Regulations
- Regulations and impact on the data center water & wastewater treatment equipment market
Regional Analysis
- Further breakdown of a region with respect to a particular country or additional equipment type
Company Information
- Detailed analysis and profiles of additional market players
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