Businesses are increasingly forced to confront shrinking water availability, a growing threat to the bottom line that requires a thoughtful solution. As UNICEF reports, nearly two-thirds of the global population experiences severe water scarcity at least one month per year. And climate change is already affecting irrigation, hydropower, municipal water supply and ecosystems. Communities and resource managers are demanding sustainable water stewardship and industry must be part of the solution.
Industry consumes 22% of total water withdrawal globally, making it the second-largest water user after agriculture. Traditional manufacturing operations relied on a linear water model: source from municipal systems or groundwater, use for production processes, then discharge as wastewater. This approach worked when water seemed abundant and utilities could guarantee long-term supply contracts. That’s no longer the case.
Increasing competition for water creates supply constraints that force industries to rethink their water strategy. Municipal systems prioritize residential customers during shortages, leaving industrial users with reduced allocations or higher costs. Drought events costing the U.S. economy more than $8 billion annually affect agricultural regions where many food processing facilities operate. Technology sectors compound the pressure, as hyperscale data centers are projected to consume 124 billion liters of water by 2028, more than doubling their 2023 usage.
Corporate water targets have shifted from voluntary sustainability goals to mandatory operational requirements. According to Microsoft, dozens of Fortune 500 companies have vowed to achieve water neutrality by 2030. Water reuse — Microsoft says it has 49 such projects worldwide to meet its 2030 goal — has become a core operational strategy rather than an environmental add-on.
Proven technology solutions
Industrial water reuse relies on a proven technology combination of membrane bioreactor (MBR) systems followed by reverse osmosis (RO) treatment. Manufacturing processes require water quality that often exceeds municipal drinking water standards. Process cooling systems, boiler feedwater and direct product contact applications each demand specific purity levels that conventional wastewater treatment cannot achieve.
MBR systems provide biological treatment combined with ultrafiltration to remove suspended solids, organics and pathogens. This produces consistent, high-quality effluent suitable for RO treatment. The RO stage removes dissolved salts, metals and remaining organics to meet industrial process specifications. This sequential approach has proven reliable because RO membranes require clean feedwater to prevent fouling and maintain performance.
With more than 40 years of industrial water experience, Veolia has developed comprehensive expertise in customizing these proven technologies and strategies for specific industrial requirements. Our ZeeWeed* MBR membranes combined with advanced RO systems provide the backbone for most successful reuse installations.
Diverse industry applications
Industrial water reuse systems demand precision engineering to handle complex contamination profiles while meeting strict process water specifications. Each facility presents unique challenges based on its wastewater chemistry, treatment targets and operational constraints.
System reliability becomes critical when reused water feeds essential industrial processes. Membrane fouling, biological growth and chemical scaling can disrupt production if not properly managed.
Food and beverage manufacturers lead adoption because of their vulnerability to supply disruptions and public scrutiny in drought-stressed regions. At a U.S. brewery, Veolia implemented a comprehensive ingredient water system using multiple RO stages with automated recovery processes. The system maximized water efficiency while meeting tight quality specifications for beverage production in a water-scarce region.
Semiconductor manufacturing presents unique challenges because facilities require ultrapure water that exceeds even pharmaceutical-grade specifications. At ASM’s Phoenix facility, Veolia conducted a comprehensive audit and optimized the cooling tower system to reduce daily water consumption by more than 60%, from 28,000 gallons to 9,000 gallons, which saves more than 6.8 million gallons annually while generating $35,220 in cost savings.
Policy and regulatory momentum
Water reuse economics has fundamentally changed manufacturing operations. Companies now evaluate these solutions based on supply security and operational continuity rather than just environmental compliance. While capital investment remains a consideration, emerging policy support is accelerating adoption.
In the U.S., the bipartisan Advancing Water Reuse Act (H.R. 2940) would establish investment tax credits for industrial water reuse projects, helping offset capital costs while supporting water conservation goals. It’s a cause constituents believe in — voters in Texas approved a proposition that authorizes a $20 billion investment in water infrastructure. Momentum continues outside of the U.S., too. In April 2025, Israel approved a multi-year investment plan to improve the country’s water infrastructure, with a focus on treated wastewater. In October 2024, Spain introduced legislation that, in part, promoted water reuse through economic incentives like subsidies or water usage fee exemptions. Similarly, Singapore launched the Industrial Water Solutions Demonstration Fund in 2023 to financially support approved water reuse projects and pilots.
Local governments are developing innovative approaches to address water shortages through industrial partnerships. Corpus Christi, Texas, which reportedly faces running out of water by spring 2027, is considering programs to supply treated wastewater to manufacturing facilities. Even states with historically abundant water resources are implementing new oversight measures, like Indiana requiring registration for facilities using more than 100,000 gallons daily or Ohio establishing permits for significant withdrawals from Lake Erie watershed sources.
A comprehensive service approach
As water stress expands globally and industrial demand continues growing, comprehensive water reuse becomes essential infrastructure rather than an optional enhancement. Companies that implement these systems now position themselves for operational stability regardless of future supply constraints and become better stewards for their communities.
Veolia’s comprehensive approach addresses these complexities through end-to-end service partnerships. Our InSight* asset performance management uses data and analytics to ensure treatment assets operate at optimal performance, while our global experience across diverse industries provides the expertise needed to create an ecological transformation.
Our vision to anticipate tomorrow’s challenges through rigorous testing of today’s most advanced technologies makes us a trusted partner for industries where precision and reliability are non-negotiable. Contact our experts today to develop a customized water reuse strategy that supports your operations while reducing environmental impact.
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Author | Tom Iseman and Brian Arntsen
Tom Iseman is Vice President of Government Affairs for Veolia's water technologies activities in North America and Brian Arntsen is Global Domain Sales Leader for Veolia's water technologies activities