Guest Column | April 15, 2025

SWAN Corner: Modernizing U.S. Water Utilities — A Data-Driven Imperative

By Ashwin Dhanasekar

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The U.S. water utility sector stands at a critical juncture, facing a confluence of challenges that demand innovative and strategic responses. Aging infrastructure, escalating operational costs, and the persistence of data silos are placing immense pressure on these essential service providers. The consequences of these pressures are far-reaching, impacting public health, environmental sustainability, and economic stability. To navigate this complex landscape and ensure the continued delivery of safe and reliable water services, a fundamental shift towards proactive, data-driven approaches is not just beneficial but essential.

The nation’s water infrastructure, much of which was installed decades ago, is showing increasing signs of deterioration. The American Society of Civil Engineers (ASCE) gave the U.S. drinking water infrastructure a grade of "D," a stark indicator of the system's precarious state. This alarming assessment is supported by the staggering statistic of approximately 250,000 water main breaks occurring annually across the country. These failures not only lead to the loss of millions of gallons of treated water but also incur significant economic costs associated with emergency repairs and service disruptions. The financial burden of addressing these infrastructure needs is substantial, with estimates suggesting that over $1 trillion will be required over the next two decades to improve and maintain the nation's water systems. This immense funding shortfall is further compounded by rising operational costs driven by stricter water quality regulations, increasing energy and treatment expenses, and the growing challenges of water scarcity due to drought. Consequently, many utilities are struggling to keep pace with these financial demands, often leading to rate increases that exacerbate the growing water affordability challenge for millions of households. The strain on the system is further intensified by the increasing impacts of climate change, with more frequent and severe weather events like floods and droughts placing unprecedented stress on infrastructure not designed to withstand such variability. The cumulative effect of these challenges underscores the urgent need for a paradigm shift in how water utilities manage their operations and assets.

Moving from reactive, break-fix approaches to proactive, data-driven strategies offers a promising path forward. By leveraging the power of real-time data and advanced analytics, utilities can anticipate and address potential problems before they escalate into costly failures or service disruptions. This paradigm shift allows for significant improvements in operational efficiency, reduced costs, and ultimately, better service to the community. The implementation of data-driven solutions enables utilities to transition from simply reacting to events as they occur to proactively managing their infrastructure and resources, leading to a more resilient and sustainable service model.

The successful adoption of new technologies and data-driven approaches hinges on empowering the workforce with the necessary skills and fostering a culture of collaboration. Extensive training programs are crucial for both field personnel and back-office staff to ensure they can effectively utilize new digital systems. The U.S. EPA recognizes this need and has invested over $20 million in workforce development programs aimed at expanding career opportunities and addressing the evolving skill requirements within the water utility sector. These programs support various initiatives, including leadership development, occupational training, mentoring, and cross-training, preparing the workforce for the demands of a digitally transformed industry. Furthermore, breaking down traditional departmental silos and encouraging cross-departmental collaboration is essential for improving communication and fostering innovation. The water sector's fragmented nature, with numerous small utilities, underscores the importance of sector-wide coordination to standardize practices and share knowledge. Ultimately, empowering the workforce involves not just providing new tools but also cultivating a mindset shift where teams see themselves as problem solvers who utilize technology to make informed decisions.

To gain real-time visibility into their operations, water utilities are increasingly partnering with technology providers to deploy smart sensors across their networks. These Internet of Things (IoT) devices provide a wealth of data on critical parameters such as water pressure, pump performance, stormwater levels, and water quality indicators like pH, temperature, dissolved oxygen, and turbidity. This transformation from analogue to digital monitoring enables utilities to make more informed decisions and optimize their workflows. The ability to monitor even remote and underground infrastructure through wireless data transfer technologies marks a significant advancement in water management. This continuous stream of real-time data serves as the foundation for more sophisticated analytical capabilities.

Leveraging machine learning algorithms and advanced analytics platforms to analyze the data collected by IoT devices allows utilities to move beyond reactive maintenance to predictive maintenance. These tools can identify patterns and anomalies that indicate potential system failures, such as pipeline leaks or pump malfunctions, before they lead to costly repairs or service disruptions. Predictive maintenance models analyze historical data, environmental factors, and real-time sensor information to estimate the likelihood of failure, enabling utilities to take preemptive action. This approach not only reduces downtime and extends the lifespan of assets but can also lead to significant cost savings, with research suggesting a potential reduction in operational costs of up to 25%. Integrating these new technologies with existing infrastructure presents a key challenge, particularly with legacy systems. However, cloud-based data platforms play a crucial role by ingesting data from both legacy and modern systems, facilitating a seamless flow of information across departments and providing the necessary infrastructure for advanced analytics.

Building upon the initial successes of IoT and AI in localized areas, utilities are beginning to scale their digital strategies to encompass more extensive geographic regions. Collaboration with local governments is essential for integrating water, wastewater, and stormwater systems with broader smart city initiatives. Cities like Dallas and Chicago are already implementing smart water monitoring and flood detection systems as part of their smart city programs. This integration allows for real-time monitoring of urban water flows and stormwater runoff, providing critical information for managing water resources and mitigating the impacts of events like heavy rainfall. The Bellevue Smart City Portal serves as an example of a collaborative effort, integrating water utility data with other city systems to enhance overall efficiency and customer service.

A key component of this digital transformation is the development of centralized dashboards for city leaders and utility operators. These dashboards provide real-time visibility into all critical systems, offering insights on water usage patterns, sewer system performance, and stormwater events. This consolidated view of operational data enables more efficient decision-making, particularly in crisis situations like heavy rainfall or flooding. Furthermore, utilities are launching customer-facing applications that give residents access to real-time information about water quality, billing, and consumption. This direct engagement improves customer satisfaction and fosters a transparent relationship with the community. Studies indicate that proactive communication and transparency are key drivers of customer satisfaction in the water utility sector, even amidst rising rates.

The implementation of such a digital transformation yields several important lessons. Stakeholder engagement and collaboration are paramount, requiring buy-in from both frontline workers and senior leadership to overcome resistance and ensure long-term success. Flexibility in approach is also crucial; a phased, iterative implementation starting with high-impact areas like leak detection and predictive maintenance allows for quicker results and easier wins, providing time to refine the strategy. Moreover, cybersecurity cannot be ignored. As the digital footprint expands, robust security protocols and ongoing monitoring are essential to maintain the integrity and safety of data and preserve the trust of both employees and customers.

In conclusion, the path forward for U.S. water utilities lies in embracing digital technology to modernize their operations and set a new benchmark for the region. By unlocking the value of data, empowering the workforce, implementing innovative solutions, and strategically scaling digitization efforts, utilities can achieve a more resilient, efficient, and customer-centric service model. Through collaboration, agility, and a continuous focus on both internal and external stakeholders, water utilities can navigate the challenges of the 21st century and ensure the sustainable delivery of this vital resource for generations to come.

Ashwin Dhanasekar, Principal of Research, Innovation, and Digital Solutions at Brown and Caldwell, is a seasoned environmental engineer and innovation leader with over 15 years of experience in the water sector. Ashwin's expertise encompasses biosolids management, microplastics mitigation, intelligent water systems, and the energy-water nexus. Prior to his role at Brown and Caldwell, he was a Research Program Manager at The Water Research Foundation (WRF), where he oversaw projects totaling over $15 million in funding from agencies such as the California Energy Commission, U.S. Department of Energy, U.S. EPA, and the Bill & Melinda Gates Foundation.​ He holds a Master of Science in Environmental Engineering from Colorado State University and a Bachelor of Technology in Chemical Engineering from Anna University in India. Ashwin has also co-founded a startup Ajax Analytics, Inc. focusing on data-driven environmental monitoring solutions.​ His contributions to environmental science are reflected in his academic metrics, including an h-index of 9 and over 300 citations. As a South Asian professional based in Denver, he continues to advance sustainable and digital innovations in water infrastructure.

SWAN, the Smart Water Networks Forum (SWAN), is the leading global hub for the smart water sector. A UK-based non-profit, SWAN brings together leading international water utilities, solution providers, academics, investors, regulators, and other industry experts to accelerate the awareness and adoption of “smart,” data-driven solutions in water and wastewater networks worldwide. Learn more at www.swan-forum.com.