The US Environmental Protection Agency (EPA) has launched the Water Reuse Action Plan 2.0 (WRAP 2.0), a renewed federal initiative to scale up water recycling across the country's industrial, technology and energy sectors. The plan positions water reuse as a strategic resource for economic competitiveness rather than solely as a water scarcity response.
The original Water Reuse Action Plan, introduced in 2020, established a voluntary, multi-stakeholder framework for advancing reuse nationally. WRAP 2.0 builds on that structure while significantly broadening its scope and ambition, driven by three converging factors: the rapidly growing water demands of American manufacturing and the technology sector; advances in treatment technologies that are opening new applications for reclaimed water; and growing private sector leadership in reuse, which has demonstrated a clear business case for adoption. With over 500 facilities already recycling water across the United States, the EPA and its partners see significant potential to accelerate uptake nationwide.
From data centre cooling to semiconductor fabrication, the EPA's renewed water reuse plan puts reclaimed water at the heart of the United States' industrial and digital economy strategy
WRAP 2.0 is organised around three key initiatives, each targeting a distinct sector of the US economy.
- Supporting reuse for resurgent domestic industry. Manufacturing processes are water-intensive: producing a single vehicle, for instance, can require more than 1,000 gallons of water. WRAP 2.0 aims to support industries ranging from automotive and food and beverage production to agriculture and component manufacturing by providing reliable, cost-effective reclaimed water supplies. New commitments include streamlining permitting for the food and beverage sector, a pilot project with Tyson Foods to recycle protein-processing water to potable quality, and efforts to map recycled water supplies available for industrial use. Ford and Toyota are among the manufacturers already operating water reuse systems at scale in the US.
- Water for the US technology revolution. Data centres and semiconductor fabrication facilities are among the most water-intensive infrastructure of the digital economy. Cooling systems alone can consume enormous volumes. WRAP 2.0 includes new actions to help states permit recycled water for data centre cooling, establish an AI Centre of Excellence to study data centre water sourcing, and address regulatory barriers to using reclaimed water in these facilities. In Loudoun County, Virginia, over 745 million gallons of recycled water were supplied to data centres in 2025 alone. Micron Technology, the only US computer memory manufacturer, has committed to 75% water conservation in its operations by 2030, with reuse playing a central role.
- Unleashing American energy dominance. From nuclear power generation to oil and gas refining, the energy sector is both a major water user and a potential source of large volumes of treatable wastewater. WRAP 2.0 focuses on turning that wastewater into a productive input, reducing costs and improving supply reliability. Arizona's Palo Verde Generating Station, the only nuclear plant in the world not located on a body of water, already uses more than 20 billion gallons of recycled wastewater annually. New EPA actions will expand regulatory flexibility for produced water from oil and gas operations and develop geospatial tools to match alternative water sources with power sector needs.
A voluntary, collaborative model
WRAP 2.0 is explicitly not a federal regulatory mandate. The plan operates through voluntary commitments and collaborative partnerships, with states and local authorities retaining primary responsibility for permitting and implementation. More than 216 organisations are involved, spanning federal agencies, utilities, technology companies, manufacturers, research institutions and industry associations. The EPA's role is to convene, provide technical guidance, cut red tape and support states in developing their own regulatory frameworks.
The plan also reinforces public health protections, with new commitments to establish validation and monitoring protocols for treatment technologies and to explore digital solutions for real-time compliance tracking. By redirecting reclaimed water toward industrial applications, WRAP 2.0 also reduces pressure on drinking water supplies for communities across the country.
WRAP 2.0 charts a course for transformational progress over the next decade, with a call for new partners to propose actions through the initiative's online platform. As water demands from digital infrastructure and domestic manufacturing continue to grow, the plan frames water reuse not as a niche environmental practice but as a core input to American industrial and economic strategy.
