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Construction of data center pipes can produce wastewater that is troubling to sewer systems and that current regulations may not sufficiently address.

Data center construction is posing new concerns for local wastewater utilities. Marco Bicca/Unsplash

Data centers sprouting up across the U.S. are facing an emerging environmental challenge: What happens to the wastewater they generate, and what kind of contaminants are in it?

Recently, a data center under construction in Cheyenne, Wyoming, was found to have contaminated the sewer system with a rare bacterium.

The water utility took swift action. The Cheyenne Board of Public Utilities fined the project developer, revoked its wastewater permit and announced that it would not accept certain types of wastewater from data centers citywide.

The developer of the project — which is backed by Meta — is appealing the $10,000 fine and disputes the utility’s conclusion tracing the bacterium to its project.

But the incident highlights what engineers view as an emerging challenge for the data center industry that is already under scrutiny over its environmental footprint. As new projects crop up nationwide, experts say it’s not clear whether small utilities have the infrastructure and regulations to ensure the wastewater is properly managed.

“It’s almost like overnight, we have a new industry. Normally when it comes to industrial discharges, the information is public and also well documented,” said Jonathan Brant, an engineering professor at the University of Wyoming.

With data centers, there is “scant actual hard data out there on what these waters look like or how these waters are going to be managed,” Brant said.