Water Foresight Podcast
Examining the future of water through the lens of strategic foresight--anticipating, framing, and shaping your preferred future.
Water Foresight Podcast
The Future of Data Centers and Water
We ask Reese Tisdale of Bluefield Research how data centers are reshaping water demand, rates, siting decisions, and public trust. We weigh the real risks against practical solutions like onsite reuse, liquid cooling, and utility partnerships that fix leaks and modernize networks.
• AI-driven demand accelerates data center growth and water use
• Municipal supply dependence and pressure on local systems
• Greenfield siting momentum versus brownfield opportunities
• Rate stability, stranded cost risk, and fairness between customer classes
• Private utility rate cases and rising scrutiny of cross-subsidies
• Overbuilding risk and planning exposure for communities
• Liquid cooling, onsite reuse, and circular water loops
• Corporate offsets, wetland projects, and PR versus performance
• Environmental pushback, drought rules, and regional constraints
• Digital tools for utilities: AMI, SCADA, predictive analytics
• Balancing innovation with reliability and public trust
For more information, please visit us at www.aqualuarus.com or follow us on LinkedIn.
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This is the Water Foresight Podcast powered by the Aquilars Group, where we anticipate, frame, and shape the future of water through strategic foresight. Welcome to the Water Foresight Podcast. Today's guest is Reese Tisdale, president of Bluefield Research. Reese, welcome back to the Water Foresight Podcast. As always, it is great to have you as a guest. I hope you are doing well.
SPEAKER_00:Matt, it couldn't be better. It's end of summer, but as I learned the other day, summers are longer and longer. So I still got a lot of runway left.
SPEAKER_01:Well, that's good. Well, we're heading into the fall, and that means water conference time, a lot of topics being discussed, uh, obviously aging infrastructure, cybersecurity, and now the topic of the day, data centers. I wanted to talk to you about your wisdom, your analysis, your thoughts on data centers. They haven't been something too new. Uh, they've been around for a couple of years, but they seem to be a subject of great discussion and debate from the standpoint of the world of water, and wanted to get your thoughts about that, as it may impact how we think about the future of water. Fair enough.
SPEAKER_00:Yeah, no, that makes perfect sense. I mean, no doubt that data centers are the topic major, even within the water sector. Uh, you know, you touched upon aging infrastructure and other utility assets, but this is something, you know, which once was maybe considered, I don't know if an externality is the right way to put it, but water is a raw or material input into data centers. And so that's why the discussion is important now, but also uh looking forward. So look forward to it.
SPEAKER_01:Yeah. I want to ask a broad question about how the world of water has come to grips with this notion of a data center. Have they anticipated this, this sort of national, even global demand for these data centers, the the, as you put it, kind of the need for water to operate these data centers? We won't get into the energy issues, but uh, your thoughts as you've analyzed uh this issue of data centers, uh, has the world of water been kind of caught flat-footed, or have they done a good job of really anticipating the impacts uh of these data centers on the world of water? Or maybe it's a mixed bag. Your thoughts?
SPEAKER_00:Well, I would say, you know, as I think about it, I would say that I feel like everybody's been caught flat-footed.
SPEAKER_01:Yeah.
SPEAKER_00:Everybody's being a bit reactive, but I think some of that is our own fault. I mean, we've seen this coming for some time to your point earlier. Data centers have been around a long time. But, you know, starting and really maybe the tipping point was November 2022 when ChatGPT was publicly released. And that was really the when it became known to the world what the impact of things like artificial intelligence are on our daily lives, let alone water and power usage. And I think, you know, as far as being reactive, I think the water sector is trying to figure it out. Um, I think the power sector is trying to figure out figure it out as well. They are interconnected in how data centers are managed as far as resources and availability of services. But I also think that these are two industries, and I'll speak to water. It's it's very mature, it doesn't move really fast. It certainly doesn't move as fast as the tech sector. So this disruption is fast, uh, particularly at the pace and speed of which uh the water sector moves.
SPEAKER_01:Can you even look at it through the lens of different actors within the world of water? You know, you've got the utilities themselves, you have the regulators, and then the environmental community. Have they approached the data center issue differently?
SPEAKER_00:Yeah, I think this is a question that you know clients come to us often and they're asking, you know, where's the opportunity? And they're, you know, I broadly speaking, I'd say it's bifurcated. You know, one part of the equation is the utility itself. 97% of data centers to date have been supplied by municipal water sources. Yeah. So they are interconnected. And so utilities and cities and communities are having to figure out what this means for their community? Should they permit a data center within their community? How much water is it going to be is going to be used? Um, what is the impact? Will there be, I mean, I think the biggest risk is competition for water, right? Yeah. Where they don't have enough to serve the existing or future needs of the community. The other side of the equation is the data center itself. And so what are the impacts? I mean, you talk about environmentalists. One is, you know, and there are things in the news about things like, you know, runoff and, you know, clear-cutting these lands, or what does that mean for surface water runoff?
SPEAKER_01:Yeah.
SPEAKER_00:Then there's also just the cooling system itself. And that's where a lot of hardware equipment and technology companies, treatment companies are zeroing in and saying this is an opportunity for us. We can work on site, we can partner with some of these companies, whether it be Amazon, Google, Meta, and so forth, to help them out as in terms of their water management.
SPEAKER_01:Yeah, I think that's a good, a good analysis. You certainly have the data center itself and how it functions, how it operates, a lot of the technical or engineering aspects, how much energy does it take, how much water will it take? But there's also the external factors, such as the planning and development of where the data center is going to go, where is the water going to come from? Where is the energy going to come from? You know, you have some other aspects. But is there an opportunity, a going forward opportunity for the data centers and these larger municipalities that over the last 20 years, they've lost industrial customers, right? If if one customer, we've heard that we hear the stories, an auto manufacturer or some other factory has left town and there goes 10% of their revenue, right? From one customer. Is this an opportunity for mayors to talk to the data center leadership community for siting new data centers in a brownfield site or an urban area versus a greenfield site? Are those the opportunities that we're going to see in the future? Or is it going to be simply greenfield sites from this point going forward? Your thoughts?
SPEAKER_00:I think most of the growth is going to be greenfield. And I do think it cuts both ways. I think your point is a really good one. This is a question that's actually come up this week and our team has been digging into this. And that is, what are the impact on water rates, right? When you bring one of these systems. And as you know as well as I do for water utilities, their business is selling water, right? I mean, that's really what they're about. And so, in some respects, it's great. They lock in a customer for, you know, uh at least a set amount of time, and they get that they generate those revenues. So, in fact, you know, I don't think that increased rates. What may increase rates, and there are a couple of instances where we have seen this, and that is when data centers, if they shut down, so utility is then left, you know, it loses 10% of its customer base, or at least per according to volume, right? Before they've got to raise rates on the remaining customers that stay. So your point about industrials is exactly right. I think the struggle with these data centers is they come into the community, they do use a significant amount of water for cooling. Um, no, it's not the same as maybe perhaps a natural gas power plant or something like that, but they do use significant amounts of water. They don't provide a lot of jobs beyond the construction of the facility. So you've you're getting that. You may, you know, get some tax revenues out of it as a community. So I think there is a balance and there is a demand on the system. And then at the same time, and we can get into this like how are some of these tech companies addressing it? But the community or the utility itself, they have other problems too. It's not just water demand. And so they're having to balance, you know, what does this mean? How much stress is it going to put on the system? Is it going to pay for itself? Because just having a big, you know, aluminum box in your community, I don't know. I wouldn't call that an end and of itself. You know, does it add enough value where you can do other things within the utility?
SPEAKER_01:Yeah. Lots to follow up on with that. I think we mentioned utilities. Obviously, you've highlighted there are both public utilities and private utilities. A question about private utilities that interact with these data centers and the rate making applications or implications in the future. Obviously, you have on the energy side quite a bit of rate making history with industrial customers who uh want to have uh different treatment than your typical residential customer when it comes to the consumption of energy. And we don't often see that with private um private water utilities. Um there are far fewer of them that are large, like the energy companies. But do you think with data centers, depending on how they're set up and who serves them, I just saw a press release from Aqua that they're going to help support the development of a data center in western Pennsylvania? Will we see the rise of Neyrook and state commissioners take a look at data centers and how they impact rate making from private water utilities from the perspective of a private water utility? And will we see an increase in uh industrial customers or residential customers now fighting with the industrial customers to make sure that rates are, uh, in so many words, fair to those different classes? Do you see that becoming a trend with these data centers?
SPEAKER_00:Well, I definitely see. I saw the Aqua or Essential announcement as well. And I thought that was really interesting. I think they were the the dollar figure they put on that was about$26 million for this data center in western Pennsylvania. Uh I think water and natural gas, maybe natural gas services through Peoples and then the water side through Aqua. So I think that's really interesting. And, you know, a question for you, I would have is, you know, that's is that really part of the regulated utility, what they're doing, the regulated business, or is it really a market-based business? Yeah. You know, some of as an aside, which some of these IOUs have. But I think to your latter question, the point about, I mean, there is just the way news travels, the way, you know, people are attuned to, you know, what's happening in acute instances. And so I do think that the public is uh fired up for lack of a better way to put it, or concerned about what this means for their community. And they're going to be looking for ways to say, is this impacting my rates or not? Right. And how is it is it beneficial or is it detrimental? And that question is gonna come up increasingly. I don't see how it can't.
SPEAKER_01:Right.
SPEAKER_00:Um, because when you go through the rate cases, there is the discussion of, you know, what is the customer profile, what's the outlook, what's the demand on the system, what's needed, what's not. And so I think these IOUs in this case, yeah, they're gonna, I suspect they're going to be prepared for this. And I do think some of them, like Essential or NW Natural, those are two that have similar business profiles, at least broadly speaking. I think they're interested in this. Yeah. And I think other IOUs do see this because, like I said, these businesses, which is what they are, but utilities as a whole, their business is to sell water. And so they're trying to figure out where the demand is and can they lock in long-term customers? And as far as industries go, this is the fastest growing segment of them all. And that's clear and evident to us at Bluefield.
SPEAKER_01:Yeah. It I imagine that the consumer advocates that are involved in these private water utility rate-making matters will become much more interested in addressing the word subsidy. Will, you know, residential customers be subsidizing these larger industrial data centers? Uh, we'll have to see how that plays out. Yeah. But your thoughts, your thoughts are good though.
SPEAKER_00:Yeah, I would think, you know, one other thing to think about is I think there's some concern. While it feels it is fast and furious, every newspaper or media outlet you open up on your computer every morning says something about AI or data centers or some form of, I always go immediately to what's the water impact. There is on the other side of this discussion, though, you know, if you're looking at, you know,$100 billion of spend for data centers over the net over the past 10 years, and that's increasing. I mean, it's insane what you're seeing. Yeah. Places like Louisiana, they're talking, I think Meta was talking about$10 billion going into Louisiana alone. Yeah. Data center. One question is it is um these data center developers, and it's not just Amazon and Google and Meta. There are these um what we'd call third-party providers that rent space. So digital realty, Equinix, you know, there's a whole host of them that are that lease out space and they're growing as well. And in fact, the larger big tech companies do rely on them. My point is the for all of them, they're all developing sites. And is the development overstating what actually is going to happen? And so, and bringing that back to the water utility. So, you know, if you're meta and you're developing data centers, you've identified, let's just say, three sites that all fulfill the immediate need. So you're going through this permitting process, but then the municipal utilities plan potentially planning around that as well. So are utilities and communities exposed in their planning process, processes, setting expectations, and maybe the data center in their community actually doesn't come to fruition. Right. So we're in this early stage, rapid growth that, like I said, would I call these guys wildcatters? They're almost like solar and renewable developers in 2007 and eight and on, where they're just going out, finding sites, finding transmission. Ultimately, they'll get to is there water available or not? And that exposes the water community ultimately.
SPEAKER_01:Do you think you're pointing to maybe a future trend next 10 to 20 years where these large data centers become a lot more decentralized and smaller instead of one or two large data centers, they have 10 or 20 spread out across the United States. Is that what may happen as a result of some of the things you just talked about?
SPEAKER_00:That's a good question. I hadn't really thought about that. I mean, it's kind of like, you know, not the best example. It's like nuclear, right? Right. We're used to the or power plants in general. We're historically used to the large centralized infrastructure systems. And then as costs come down, experience, is it better to just move them, um, you know, to distribute them? You know, we're talking now about small-scale nuclear. I'm not a full believer in that, that it's actually going to happen anytime soon. But it's actually not a bad thought. You know, I think the but I would say, yeah, it would I my guess would be 20 years on, you know, um, after this first, second wave of data centers happen. And then we ultimately head back towards because of technology improvements, the cloud, do we then ultimately get to on premise again? Sort of like uh, you know, cable systems, right? With all the apps, are we now trying to consolidate it all again?
SPEAKER_01:Right, right. So well, and it, you know, play this out from a regulatory standpoint. If there are these, you know, data centers that are built and they're large, you know, that let's call them factory size, and over time technology changes. We don't know what will happen in the next 10 to 20 years with the ability of new microprocessing technology, storage technology. You know, it it's it's what we joke about, you know, with with ENIAC or the old IBM PC, right? And the 10 megabyte hard disk drive, right? Which seemed at the time gigantic, right? 10 megabytes is a is a picture right now on my phone, right? Right. And will we see issues with stranded assets where these large factories uh become a bit obsolete or underutilized, and that creates some rate making challenges, perhaps. Um, it certainly would create some consternation for maybe local public officials if you're talking about a public water utility. And then what happens when uh we build these systems across a number of places in America? Uh, will we see states competing with one another to provide the necessary water and energy services for these data centers? A lot of things on my mind about what you just talked about.
SPEAKER_00:No, it is property development. It's bigging, you know, it is bringing, you know, big names into the community. I think, you know, honestly, in a in a cynical way, I think tax bases are community stakeholders. They're dazzled by the fact, oh, we could have Google or Meta in the community.
SPEAKER_01:Yeah.
SPEAKER_00:I'm not I'm not fully convinced that it brings the benefits that they expect, other than that. But I do think that the thought of decentralization ultimately that's interesting. It's an interesting thought. I mean, I think right now the drive is one, where's the demand? I mean, there are obviously hot spots, right? There's so, you know, everybody talks about Loudon County County, Virginia, sort of around Washington, where that's been. But we see them, you know, in the Pacific Northwest, California. Uh, we're now seeing activity in Texas. Um, it it the ability to move data quickly seems it's amazing. But we are seeing, you know, alignment for where, you know, large interconnections are one not only of the of the cabling to move things, whether it be in the US or even to Europe and other parts of the world, but also the next step is um the power sector, you know, where are grid connections, right? So we're seeing large ones in places like Tennessee, um, where there's cheap power, because that's a big cost. And with that comes the water discussion as well. Yeah.
SPEAKER_01:Well, I wonder how this will potentially drive states or even local jurisdictions to consider new or even revised regulatory regimes, specifically focused on water supply or consumption, even drought management requirements from state to state. And it seems that, uh, and I won't you know name particular states, but it seems that with the rise of these large data centers or you know, maybe sometimes these data centers are part of a larger uh commercial park. And it seems that that the local or regional representatives, uh neighbors have opposed this. And it's under the perhaps the label of it's our water, it's my water, right? You're moving water from here to there. Um, it may or may not be within the same watershed or across watersheds down the road. But we've been here before, and and not necessarily from a Western water rights perspective, but are we going to see a rise of perhaps new or revised water regulations or statutes driven by this uh rise in data center activity where we're seeing water becoming a huge piece of this puzzle, you know, whether it's surface water, groundwater, um, what happens when there's a drought, who gets the water first, things like that. What do you see over the next 10 to 20 years with with these these these uh these regulatory opportunities, if any?
SPEAKER_00:Yeah, so I think from uh Government perspective. I mean, I think to that point, I mean, let's just say Western states, they're underwater stress and will be indefinitely, it seems. I don't think anything is going to change anytime soon, given the path we're headed. So we are seeing pushback, regulatory pushback, and part of that's driven by, you know, community members saying, hey, wait a second. When there are already requirements on development, how can you bring in a data center? Is there enough water to supply that? I so I think there's discussions of that. I find it hard to believe that some of these communities are going to push back on bringing business into their community. So I think in many respects, they're going to push it off on the, or at least say to the companies themselves, the developers, the big tech firms, you need to be more efficient in your water use, in water usage. And so that's going to drive things like, and it's starting to do that. We're already seeing things like liquid cooling rather than air cooling. We're seeing, you know, re-on-site reuse. And I think this industry has come on so hard, so fast over the last decade, which seems like a long time. For the water sector, it's not a long time at all.
SPEAKER_01:Yeah.
SPEAKER_00:And, you know, so I think that's, and so we're also seeing, you know, some of these companies like Google putting out, and we just did some analysis on Google putting out an RFP for um, you know, uh wetland replenishment or investments in the wetland remediation or offsets is another way to put it in areas near their data center. So they're work doing different things, and part of it is a PR game because they're facing that pressure. So I think that's part of it. Um I do, I don't want to lose sight of one thing I think is interesting, you know, as there is pushback, as we all know, these big tech companies, they have plenty of money. Um, let's not kid ourselves. Yeah. So what they are doing is they in some cases, they're going to the communities and saying, okay, we want to put a data center here. What are your problems? What's your what do your water infrastructure assets look like? Do you have, you know, what are your leakage rates? What issues are you having? And so they're partnering with companies like Fidotech and others, what they're doing, it's a different business model. And they're saying, I'll tell you what, we'll do. We're smart, we have, we understand data, we can help, you know, leverage our tools, but we can help you solve your other problems that make the water utility itself more efficient, more water efficient, financially efficient, and then give us a green light to develop in your community. And there that's the trade-off. And I think that's really interesting.
SPEAKER_01:Yeah, I mean, you're you're right. I mean, typically a new business comes into town and they say, well, we'll we'll build a new park or or put money into it, build a new school or a fire department. But in this case, we're gonna rehab or repair a lot of your water infrastructure, which could pay off for the data center down the road if they need additional water supply. They have to be reliant on that water to run their system. If it's unreliable, they've got water losses, um, pipes breaking. That's not good for the data center operation. That's an operational risk. So that's interesting. Um, I hadn't thought about that. Tying this regulatory issue, obviously, I could probably have a whole nother podcast on you know water credits and trading, uh, water rights, things like that, a whole different uh look at that and how the data centers may play into that. Obviously, you you teed up the wetlands issue, but the you you raise an issue about innovation and technology. We we've talked for many years about purple pipes, water reclamation, water reuse. Do you see, based on your analyses, that this this kind of rise of data center activity is going to drive some new or uh new innovations or advance some other innovations that have been kind of sitting there on the shelf to ensure that there's enough water out there to run these data centers? What are you seeing?
SPEAKER_00:Well, I mean, I think, you know, I would reinforce the the, and I'm not playing favorites here. I just know more about as the Fidotech, you know, that business model and approach. But we're also seeing large firms like the Ecolabs, the Xylems, the Violes of the world, they are targeting these data centers as a growth opportunity to deploy everything from more advanced water management systems that is on site, like even containerized reuse uh on-site for cooling. And so but you know, I would say I wouldn't exactly call that innovative. I think in many cases, and I will say time and time again, many of our water problems is it's almost never a technology problem. It's it has usually almost always more to do with, you know, political will, financial will, and ability to pay for things and just willingness to take actions. So I think that would be the more interesting aspect. I mean, one area that I do think is interesting, and this is really what I would say the future of water. And I think if we had to start all over again or start from scratch, we would do this. But as I always say, it feels like we are rebuilding the house while living in it. And that is you have a data center, but then if you're surrounded by other industries that have effluence, it should all be interconnected. And, you know, if you're if you have heavy eff or effluence, it doesn't have to be heavy, but volumes, that water should be treated to a point and then passed off to the data center to use for cooling. And then if there's water, you know, it there should be it should be more uh there should be a more holistic approach. And we do see some in select instances of that. I mean, one thing if it's been talked about is you know, oil and gas sector, right? You know, it's a$20 billion water management per year business, yeah, right? We're talking primarily in Texas, West Texas at that. And so there's a new new state court ruling about reusing this uh produced water for beneficial uses. People are like, oh, we can use this for data centers. Well, West Texas is not really close to anything for one. Yeah, there's plenty of water. I that's only one small part of the discussion. So I I would say the innovation really, what I'd like to see is on the more holistic approach of connecting the different users of water because everybody needs something a little bit differently, and I think there's the opportunity to reuse and reclaim some of that uh effluent.
SPEAKER_01:So possibly uh in the future, it's not that we are going to see a a range of new innovations. It's simply taking the current innovations and applying them to the world of data centers in a more thoughtful way.
SPEAKER_00:Yeah, 100%. I mean, you know, the I think you know, as we talk about, you know, can emerging contaminants in water. We have the technology to treat it. Uh it's just a matter of deploying it, paying for it, and uh figuring out what to do with uh any any other byproducts. So it's not a technology issue.
SPEAKER_01:Taking the notions of the circular economy and applying them to the world of data centers. 100%. Yeah. I wonder uh our our friend uh Bruno Piggott, the uh immediate past assistant administrator for water at EPA, he's now the new uh I think the new executive director of the Water Reuse Association. We should uh pick his brain on how he's gonna think about this. You know, welcome to his new job, and he's he's got a lot of thoughts and opportunities here with water reuse and and data centers, I'm sure. What um the environmental community, we talked about that at the very beginning. Do you see a, apart from the technical issues and the and the uh utility issues, the rate-making issues, do you see a rise in environmental groups, different groups, or even a shift in these groups that exist in focusing on data centers? Now, is this a new target that we'll see? Is this the, as I put it, the the new CAFO, right? The new concentrated animal feeding operation? You know, is this the new the new thing that they will target and oppose for various reasons? Uh do you see uh do you see that becoming a feature of data centers in the future of water?
SPEAKER_00:I didn't really thought about the CAFOs. One thing that I've been thinking more about is hydraulic fracturing, right? Fracking where these communities are being disrupted. You know, back in 2010, 11 in the Marcellus in Pennsylvania, you know, people were complaining, oh, my faucet's catching on fire. There have been m movies made about it with Mark Ruffalo. But the that it became what I would say is a strong environmental movement against hydraulic fracturing. And we're, I think, and I said this only within the past couple of months of reading something in, I think it was in the New York Times about a data center in Georgia, maybe west of Atlanta. I don't remember exactly where. But you know, people were saying, Oh, you know, my water has turned brown, I've had this problem or that problem. So there definitely is um back to whether it be social media, people are aware these movements happen quickly, they build up. And I do think that the data center firms, those developing and you know, developing and paying for them, they are under a lot of scrutiny. They see it. Uh, I think they're trying to mitigate it in many ways back to sort of wetland management. They're they're doing different things to make it not seem as bad as people may may say it is. But it is, you know, I don't know, the world's different than it was 10 years ago.
SPEAKER_01:Yeah.
SPEAKER_00:20. People people get upset about things, and sometimes rightfully so. So the question is whether it be that data center in Georgia or elsewhere, how specific is it to that one location and how it was been how it has been constructed, or is it a systemic problem? I'm not fully convinced that it's a systemic problem because water management as a whole is very local. And it kind of depends on where you are. If you're in the Great Lakes region, they have different constraints and let's say what you have and and different problems and what you see in places like Arizona or Texas.
SPEAKER_01:Right, right. We have the Great Lakes Compact, which, you know, when you when you draw a ring around the Great Lakes, you know, as a watershed, you can't move drinking water out and you can't add wastewater treated back in. It has to be, you know, treated differently. Um, I've seen that before. What I I guess my final question, it it kind of links to this this discussion here about um the environmental community, but do you think out of all of this, again, setting aside the technical issues and the economic issues, do you think this this the rise of data centers and its and its uh impact in the world of water is gonna create any renewed or uh modified ethical or social discussions on the use of water? Are we gonna see anything change in the next 10 years on on how we use water as a result of these emerging data center discussions?
SPEAKER_00:Unfortunately, I don't think I think the developers, I think, you know, um cash is king. I think communities and I'd say community stakeholders are gonna look at this. I do think, I like I said, I think the change, if anything, is gonna come on the technology side because of things like environmental pushback, even regulatory pushback, where communities say, hey, this is, you know, if you want to build here, this is what our expectation is. Yeah. But I I unfortunately I wish the world was as uh streamlined or as sort of linear as that. I think there's so many disruptions coming out of data centers for good and bad, um, whether it be, you know, I mean, so we're all connected to this one way or another. And this is maybe more philosophical. I mean, I've got a 14 and a 16-year-old who are still on summer break sitting on their phones at home right now, I could almost guarantee. And that's largely a result of data and moving data around. The other aspect is going forward, what does this mean for jobs?
SPEAKER_01:Right.
SPEAKER_00:And so I do think, you know, what is interesting about this is there are benefits for the water sector to come from this. The question is, will the water sector, utilities and industries alike, will they take advantage of it, whether it be using all of this, these data-driven tools for workforce management, for remote monitoring of their systems, right, predictive analytics? I so there's upside, downside to all of this. I think people tend to focus on the downside, and I get why, but I do think uh there's such incredible upside. The question is, will the water sector move fast enough to leverage it and keep pace so that their service, you know, services remain reliable and consistent?
SPEAKER_01:Yeah. Well, I I think it a couple things. I think it ties back to your comment a few minutes ago about all sides to these water issues have become more sophisticated over the last 20 years, whether you're a developer, a utility, or an environmental group. Pick your issue, but I think the parties have gotten to know each other, they've understood means and methods and how to maybe come to agreement in a more rapid way. And I think you discussed how how that may unfold. I'm certain that our favorite term environmental justice is out there. I think probably someone has already penned an article about data centers being an environmental justice issue. We'll have to keep an eye on that. How will that, how will that unfold? And then I'm I'm thinking that your point about having data centers, many data centers, is a benefit, as you put it, to the water utility world. As you note, you were you're always kind, but water utilities, the world of water, they tend to be very reactive and tactical, as I say, slow, slower than the energy world. And so if they are going to be partaking of these innovations, whether it be advanced metering infrastructure, SCADA, and other innovations, being able to have those data and being able to use it may be a function of having a vibrant data center uh in the area where they can back up their data, use it, you know, engage artificial intelligence for the benefit of the customers. So that's a that's a positive that we'll have to keep an eye on going forward. Did I summarize that right?
SPEAKER_00:Yeah, I think so. I think like I said, there's a real opportunity there. And whether it stems from the local data center, I think everybody knows about it, knows about the role of or impact of what we would call the digital economy. But I also think that, yeah, it doesn't like I just I I want to be optimistic about it. I don't think it's it's all bad. And that um there is a real, there is an opportunity here. And and I think to your point, and I think it's really valid, and this may frustrate some people. It particularly frustrates what I you know, outsiders looking in, as we call them, those who are not in the water industry. I don't think anybody wants their water utility to move that fast. Right. Um there's there's a lot at stake. And so it's one thing that uh I don't think anybody wants, you know, the the the leadership at any utility, they they don't want them to screw things up.
SPEAKER_01:Right. They I I think you're correct on that point. As I talk to people about innovation in the world of water, sometimes people scratch their head and wonder why things don't move uh at a quicker pace. And I I say, look, the general manager of a water utility has to provide clean and abundant supplies of water 24-7, 365. And trying new things that may disrupt that, uh, either, you know, break the pipe or or change the water quality, uh, that gets people fired and gets people very upset. And so there's an aversion to that, I think, as you allude to. Um, and so we'll have to see how that how that unfolds. Um, but I do thank you, Reese, for your time and your thoughts on data centers in the world of water. And I look forward to to reading more from Bluefield Research on this. Um, your recent report is is amazing. And um, you're always welcome to come back and talk to us about the future of water, whether it be data centers or other things that are happening. And so I appreciate your time today.
SPEAKER_00:All right, Matt, really I do appreciate it. Thanks for uh inviting me to join. These are interesting topics. I sometimes I just feel like a half-trained bird dog trying to trying to figure it out. But you know, I got a good team that helps me or guides me, should I say, uh, in a lot of different directions. And this is one of them. So yeah, thanks for letting me share my thoughts.
SPEAKER_01:Well, you got a brilliant, uh, brilliant team there at Bluefield Research. And tell tell our audience where can they get a hold of you and Bluefield if they want to learn more about what you do?
SPEAKER_00:So you can always, you know, by email, water experts at bluefieldresearch.com, and then our website is www.bluefieldresearch.com. Pretty straightforward. You can find me pretty easily. Just send a note and I get it almost immediately.
SPEAKER_01:Wonderful. Well, Reese, again, thank you for your time, and we thank you, the listener, for joining us today on the Water Foresight Podcast. And we look forward to seeing you on the next episode. Have a great day.
SPEAKER_00:You too.
SPEAKER_01:Thank you for listening to the Water Foresight Podcast, powered by the Aqualars Group. For more information, please visit us at aqualars.com or follow us on LinkedIn and Twitter.
