In this article, we will discuss: 11 Best Water Management Stocks to Buy.
On February 24, 2026, Reuters reported that Jensen Huang and Brad Smith revealed plans to reduce artificial intelligence data center water consumption in early 2026. Huang stated that Nvidia’s Vera Rubin chip system can run with cooling water at 45°C, compared with the industry standard of 6°C, minimizing evaporation. Smith said Microsoft has begun developing data centers with closed-loop cooling systems that circulate liquid through semiconductor housings, reducing water use by 90%. The changes address concerns that AI growth could increase water demand. Ecolab, a water-treatment business, forecasts that AI expansion could necessitate an increase in annual water use equal to existing US drinking water usage by 2030.
However, broader water risks persist. According to the Lawrence Berkeley National Laboratory, data centers in the United States utilized around 66 billion liters of water directly in 2023, but indirectly consumed 800 billion liters through electrical power generation. Meanwhile, S&P Global estimated that roughly half of data centers are located in places with high or very high water stress, such as Virginia, Arizona, and Singapore.
With that said, here are the 11 Best Water Management Stocks to Buy.
Methodology:
We used screeners to identify Water Management Stocks and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
11 Best Water Management Stocks to Buy 11. The York Water Company (NASDAQ:YORW)
On March 3, 2026, The York Water Company (NASDAQ:YORW) announced 2025 operating revenues of $77.488 million, rising $2.529 million from 2024, while net income was $20.058 million, down $267,000 year-on-year. The company reported basic and diluted earnings per share of $1.39, down $0.03 from the previous year. Customer growth and revenue from the Distribution System Improvement Charge resulted in higher revenues. Lower income taxes and a non-recurring life insurance gain boosted performance. However, higher operation and maintenance costs, increased depreciation, higher debt interest, and a lower allowance for funds used during construction negated those gains.
In 2025, The York Water Company (NASDAQ:YORW) invested $48.7 million in major projects such as main extensions, infrastructure enhancements, and an enterprise software system upgrade while also rebuilding approximately 54,100 feet of water main and 1,800 feet of wastewater main. The firm reported a $606,000 increase in fourth-quarter operating revenue and a $25,000 rise in net income, resulting in diluted earnings per share of $0.36.
The York Water Company (NASDAQ:YORW) impounds, purifies, and distributes drinking water. It owns and runs both wastewater collection and treatment systems.
10. Middlesex Water Company (NASDAQ:MSEX)
On February 19, 2026, Middlesex Water Company (NASDAQ:MSEX) reported $42.8 million in net income for 2025, a $1.5 million decrease from 2024, and diluted earnings per share of $2.36, down from $2.47 the previous year. The corporation’s operating revenues were $194.7 million, up $2.8 million year on year, mainly due to rate hikes and client growth throughout the Middlesex, Tidewater, and Pinelands systems. Operating expenses increased by $1.7 million.
The corporation announced fourth-quarter net income of $8.6 million and diluted EPS of $0.46, compared to $8.8 million and $0.49 in the previous year’s quarter, showing increased interest expense and income taxes, which were balanced by higher operating income. Middlesex Water Company (NASDAQ:MSEX) spent $96 million on water and wastewater infrastructure in 2025, and proposes to invest $506 million in utility infrastructure from 2026 to 2028, and paid a $0.36 dividend per share.
Middlesex Water Company (NASDAQ:MSEX) owns and manages regulated water utility and wastewater systems. The company’s services include water production, treatment, and distribution, full-service municipal contract operations, and wastewater collection and treatment.
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