ResearchAndMarkets projects the sector will grow from $3.30 billion in 2026 at a 12.3% CAGR, with North America leading and cooling-water treatment and chemical systems holding the largest shares.
The global data center water and wastewater treatment equipment market is projected to expand from $3.30 billion in 2026 to $5.90 billion by 2031, reflecting a 12.3% compound annual growth rate, as operators add capacity and invest in more water-efficient cooling and reuse systems. The report says demand is being driven by accelerating construction of hyperscale and AI-focused facilities, rising cooling-water needs, tighter environmental requirements, regional water scarcity, and stronger sustainability commitments. Chemical treatment and conditioning systems are expected to hold the largest equipment-type share because they help control corrosion, scaling, microbial growth, and contamination in cooling-water systems. Cooling water treatment is forecast to lead by treatment stage, supported by the heavy water needs of cooling towers, chilled-water systems, and liquid cooling (using liquids instead of air to remove heat). North America is expected to remain the largest regional market, underpinned by continued buildout in the US and broader demand from cloud computing, digital services, AI, and high-performance computing. The study highlights opportunities in water reuse, water recovery, alternative water sources, smart water monitoring, and AI-based optimization, while citing high capital spending, retrofit complexity, permitting delays, water scarcity, and rising operating costs as key constraints. Leading companies named in the report include Veolia, Ecolab Inc., Xylem, Solenis, Saltworks Technologies Inc., Aquatech International LLC, Kurita America Inc., Gradiant, Lenntech B.V., and IDE.