
Study Period | 2021 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
Market Volume (2025) | 0.98 Trillion liters |
Market Volume (2030) | 1.44 Trillion liters |
CAGR | 8.00 % |
Market Concentration | Low |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
United States Water Consumption Market Analysis
The United States Water Consumption Market size is estimated at 0.98 trillion liters in 2025, and is expected to reach 1.44 trillion liters by 2030, at a CAGR of greater than 8% during the forecast period (2025-2030).
IT Load Capacity: The IT load capacity for the United States colocation data center market stands at roughly 18400.73 MW in 2024.
Geographical Significance: The U.S. climate spans from the tropical heat of South Florida and Hawaii to the frigid cold of Alaska and the Rocky Mountains. Northern Virginia ranks as the premier data center location, with Dallas, Silicon Valley, Phoenix, Chicago, Atlanta, Portland, the New York/New Jersey area, Seattle, and Los Angeles close behind. These centers are ideally situated in regions with sufficient electricity, cooling water, fiber connectivity, affordable real estate, tax benefits, and minimal natural disaster risk. However, in 2023, Virginia encountered unprecedented dry spells, including a major drought, impacting much of the state, particularly the northern counties.
Raised Floor Space: The raised floor space for the United States colocation data center market is estimated at around 66021803.82 sq.ft in 2024.
Projected Installed Racks: The projected number of installed racks in the United States colocation data center market for 2024 is approximately 2628675.10.
United States Water Consumption Market Trends
Colocation Segmentation is showcasing significant growth in 2023
- In 2024's dynamic digitalization environment, driven by increased data usage and digital transformation, AI adoption, 5G deployment,OTTs and fiber network expansion are crucial. Rising smartphone sales support these trends, making data centers essential. By Q1 2024, Fixed Wireless Access (FWA) has become the second-largest 5G application, connecting over 8 million U.S. business and residential locations with reliable, high-speed internet.
- In the United States, smartphone ownership remains high, with about 80% of the population using these devices, a trend that has held steady for the past four to five years. Out of 338.29 million people, 276.14 million are smartphone users, resulting in an 81.6% penetration rate. Apple's iOS leads the operating system market with a 55.48% share, while Android, including brands like Samsung, Nokia, and Google, holds 44.27%.
- The United States stands at the forefront of AI technology, with numerous American firms and universities spearheading innovation and adoption. Organizations are increasingly embracing generative AI, reaping benefits in both cost reductions and revenue boosts. The sectors most inclined towards AI adoption include information services (18.1%), professional, scientific, and technical services (12%), and educational services (9.1%). The U.S. boasts a commanding lead with 5,509 AI startups, the highest count globally.
- The rising demand for colocation data centers, driven by the need for a strong digital infrastructure to meet today's connectivity requirements, highlights the growing importance of colocation facilities. As colocation data centers adopt liquid cooling technologies to cater to the immense demands of servers and GPUs, water consumption is set to rise in coming years in United States.

Mega Data Centers Embrace Sustainable Infrastructure to Mitigate Rising Water Demands
Data centers are major consumers of natural resources. While carbon emissions and electricity consumption often dominate discussions, water usage is increasingly coming into focus. Water plays a crucial role in cooling systems, managing the heat generated by these vast facilities, and ensuring their servers operate continuously, 24/7.
The United States boasts the world's highest concentration of data centers. With the rapid adoption of AI, there's a surge in power and water demand. Most U.S. data centers, equipped with advanced IT infrastructure like racks, servers, and GPUs, generate significant heat due to their workloads. This heat is managed using liquid cooling technologies.
In U.S. data centers, Immersion Liquid Cooling and Direct-to-Chip Cooling are the main methods. The mega data centers adopt these technologies, water use has surged, straining local communities. To address this, mega data centers are exploring less water-intensive options such as recycling water methods.
Due to increasing water consumption by mega data centers and other industries, the U.S. government plans to significantly boost investments in potable water recycling initiatives. These investments will rise from 93,350 acre-feet per year in 2023 to around 407,714 acre-feet per year in the coming years. This increase will help meet the water demands of various industries, including mega data centers, to support their growing data needs in United States.

United States Water Consumption Industry Overview
The data center market focused on water consumption in the United States is highly fragmented, with five key players taking the lead. These frontrunners include Google LLC, Microsoft Corporation, Amazon Web Services Inc., Digital Realty Trust Inc., and Equinix Inc. Several hyperscale data centers, including those operated by Google, Meta, Microsoft, and Amazon Web Services, have set an ambitious goal to achieve "water positive" status by 2030. For instance, Amazon aims to return more water to the communities than it consumes in its direct operations, a feat it plans to accomplish through recycling methods in its data centers. Echoing this commitment, Microsoft has been actively working on reducing water usage for cooling. Notably, starting August, the new data centers being designed for Virginia will implement zero-water cooling technologies. Google has also aligned with these sustainability efforts.
United States Water Consumption Market Leaders
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Google LLC
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Microsoft Corporation
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Amazon Web Services Inc.
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Digital Realty Trust Inc.
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Equinix Inc.
- *Disclaimer: Major Players sorted in no particular order

United States Water Consumption Market News
- October 2024: Digital Realty partnered with Ecolab to deploy an AI-driven water conservation solution in 35 U.S. data centers. Nalco Water, Ecolab’s division, will implement the solution to enhance water efficiency, potentially reducing water use by 15%, extending equipment lifespan, and saving up to 126 million gallons of potable water annually. In 2023, Ecolab's solutions helped Digital Realty cut water withdrawal by 5% and avoid 986 tons of CO2 emissions.
- April 2023: Amazon Web Services (AWS) received approval from the Virginia Department of Environmental Quality to withdraw up to 5 billion liters of water annually from the Rappahannock River. This water will cool AWS new data center on a redeveloped industrial site. The authorities also imposed strict water extraction limits to ensure the river's health, and AWS typically uses less than the allowed amount.
United States Water Consumption Industry Segmentation
The study tracks the critical applications of water in large data centers, such as cooling and power generation. It includes key applications based on water consumption in data centers and quantifies overall water usage in billion liters across regions. The study also identifies underlying trends and developments conceptualized by leading industry data center operators.
The United States Water Consumption Market is Divided Into Segments Based On Water Procurement (Potable Water, Non-Potable Water, and Other Alternate Sources), Data Center Type (Enterprise, Colocation, and Cloud Service Providers (CSPs)), and Data Center Size (Mega, Massive, Large, Medium, and Small). The Report Provides Market Size and Forecasts for all These Segments, Measured in Volume (Trillion Liters).
Market Segmentation - By Source of Water Procurement | Potable Water (Via Regional Water Utility Companies, Local Water Authorities or Private Companies) |
Non-Potable Water (It Includes greywater (Treated Sewage or Recycled Water) | |
Other Alternate Source (It includes on-site Groundwater, Surface Water, Seawater, Water produced via a byproduct of oil and gas extraction, and Rainwater) | |
Market Segmentation - By Data Center Type | Enterprise |
Colocation | |
Cloud Service Providers (CSPs) | |
Market Segmentation - By Data Center Size | Mega |
Massive | |
Large | |
Medium | |
Small |
United States Water Consumption Market Research FAQs
How big is the United States Water Consumption Market?
The United States Water Consumption Market size is expected to reach 0.98 trillion liters in 2025 and grow at a CAGR of greater than 8% to reach 1.44 trillion liters by 2030.
What is the current United States Water Consumption Market size?
In 2025, the United States Water Consumption Market size is expected to reach 0.98 trillion liters.
Who are the key players in United States Water Consumption Market?
Google LLC, Microsoft Corporation, Amazon Web Services Inc., Digital Realty Trust Inc. and Equinix Inc. are the major companies operating in the United States Water Consumption Market.
What years does this United States Water Consumption Market cover, and what was the market size in 2024?
In 2024, the United States Water Consumption Market size was estimated at 0.90 trillion liters. The report covers the United States Water Consumption Market historical market size for years: 2021, 2022, 2023 and 2024. The report also forecasts the United States Water Consumption Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
United States Water Consumption Industry Report
Statistics for the 2025 United States Water Consumption market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. United States Water Consumption analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.