The conversation around data center water usage is becoming increasingly mainstream, with Kentucky and Tennessee being no exception. These facilities, which house critical digital infrastructure supporting cloud computing, artificial intelligence, and other digital infrastructure, are heavily reliant on water to cool their server infrastructure, creating unique opportunities and challenges for municipal utilities. Utilities must balance long-term sustainability of water resources with the growing demand for data centers in response to our data-crazed culture. This presentation explores the impact of data center operations on water resources in the region and presents strategies for municipal water utilities to manage these current-day challenges and plan for the infrastructure challenges of the future. Discussion will include an overview of the data center industry and how data centers function, including a summary of water quantity and quality considerations for cooling, especially in facilities that rely on evaporative cooling systems. This presentation will also discuss how municipal and high-tech industrial considerations intersect in the development of water infrastructure. Collaboration between utility providers and data center operators will be emphasized as critical to align development timelines, forecast demand, and avoid bottlenecks in water supply. Key considerations for data center site selection, including cooling water quality and the availability of municipal water/reuse water for data centers, will also be discussed. Lastly, guidance will be shared to aid utilities in responding to potential data center inquiries and preparing their organizations and systems for long-term, mutually beneficial relationships with data center operators.