• AWS will use recycled water in more than 120 U.S. data centers—up from 24—preserving an estimated 530 million gallons of drinking water annually.
• The initiative contributes to Amazon’s goal of becoming water positive by 2030, having already achieved 53% progress toward that target by end-2024.
• The expansion reflects rising regulatory and community focus on water stewardship in digital infrastructure operations.

AWS Scales Recycled Water Systems Nationwide

Amazon Web Services (AWS) is expanding the use of recycled water across its U.S. data center network in one of the company’s most extensive resource-efficiency efforts to date. The program, now covering more than 120 sites—up from 24 previously—is expected to conserve over 530 million gallons of drinking water every year, equivalent to roughly 800 Olympic-sized pools.

The initiative is central to AWS’s strategy to reduce the strain on local water supplies while maintaining the cooling needs of its rapidly expanding digital infrastructure. As data centers become increasingly critical to global cloud operations, their water and energy use have drawn growing scrutiny from policymakers and communities in drought-prone regions.

Recycled Water and Data Infrastructure

Recycled—or reclaimed—water originates from wastewater treatment facilities and undergoes further purification to make it suitable for industrial and agricultural use. In AWS’s case, it serves as a sustainable cooling resource. Most AWS data centers rely on air-based cooling for much of the year, but during hotter months, they shift to direct evaporative systems that require water to regulate internal temperatures.

Under the program, AWS collaborates with municipal utilities to access treated wastewater, further purify it to meet safety and technical standards, and then use it in cooling operations instead of potable water. This partnership model allows utilities to reduce wastewater discharge while AWS cuts its dependence on local drinking-water reserves—a mutually reinforcing model of circular resource use.

Governance, Risk, and Regional Implications

Water scarcity has become a defining infrastructure risk across several U.S. states, particularly in the West and Southwest. Federal and state regulators are tightening standards for industrial water use, while local authorities increasingly demand corporate transparency on withdrawals, reuse, and replenishment practices.

AWS’s shift toward recycled water addresses both operational resilience and compliance readiness. By aligning its practices with regional water-reuse programs, the company strengthens its license to operate in jurisdictions where data-center permitting faces growing environmental resistance. The model may also serve as a reference for other hyperscale operators navigating similar sustainability expectations from investors and regulators.

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Toward a Water-Positive Future

The recycled-water expansion contributes to Amazon’s broader goal of becoming water positive by 2030—defined as returning more water to communities than the company consumes in its direct operations. By the end of 2024, AWS reported achieving 53% of that target, reflecting progress across efficiency upgrades, replenishment projects, and partnerships with local water authorities.

Achieving full water positivity will depend on scaling similar initiatives globally and aligning with emerging reporting frameworks, including the Taskforce on Nature-related Financial Disclosures (TNFD) and corporate biodiversity targets under the EU’s CSRD regime. For AWS, the move also positions the company ahead of potential disclosure mandates on environmental resource management in the technology sector.

What It Means for Investors and Policymakers

For ESG investors, AWS’s expansion represents a material step in addressing one of the technology sector’s most visible environmental impacts. The initiative illustrates how large-scale digital operators can mitigate local water stress through innovation and cross-sector collaboration, rather than incremental efficiency alone.

For policymakers, it offers a case study in how public-private cooperation on recycled water can strengthen municipal infrastructure resilience and reduce the competition between industrial and residential water demand.

As global water scarcity intensifies, AWS’s approach reflects a broader shift in sustainability strategy—from reducing harm to actively replenishing shared resources—illustrating how governance, finance, and environmental priorities can converge in one of the world’s most resource-intensive industries.

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