5 Best Water Infrastructure Stocks to Buy as AI Data Centers Strain Resources

In this article, we will list the 5 Best Water Infrastructure Stocks to Buy as AI Data Centers Strain Resources. Please visit 10 Best Water Infrastructure Stocks to Buy as AI Data Centers Strain Resources if you’d like to see an extended list.

To compile our list, we screened for companies with direct exposure to water treatment, reuse, pumping, flow control, metering, and related infrastructure. We then prioritized stocks with recent business updates, data center exposure, or infrastructure demand tied to cooling. We then ranked stocks based on the number of hedge funds holding stakes in them as of Q1 2026.

5. Xylem Inc. (NYSE:XYL)

Number of Hedge Fund Holders: 46

Xylem Inc. (NYSE:XYL) is one of the best water infrastructure stocks to buy as AI data centers strain resources. On June 8, 2026, the company expanded its long-term partnership with Dow to design, build, and operate advanced water systems at Dow’s large-scale industrial complex in Fort Saskatchewan, Alberta. The project will support Dow’s Path2Zero operations and is expected to be operational by August 2028.

The agreement gives Xylem a fresh example of the kind of integrated water-management work that becomes more important as industrial and digital infrastructure strain local water supplies. Xylem will deliver engineering, system design, and long-term operation for a full water-cycle system that treats raw water, converts cooling and industrial process water into high-quality reusable supply, and optimizes system performance over time. That directly supports the broader AI infrastructure theme because water reuse, treatment, and real-time system management are becoming central to avoiding competition between industrial growth and community water needs.

Xylem Inc. (NYSE:XYL) provides water technology, treatment, pumping, analytics, metering, wastewater, reuse, and digital infrastructure solutions for utilities, commercial customers, industrial facilities, and communities worldwide.