- Xylem: Wells Fargo was among the lead arrangers and joint bookrunners in an $800 million senior unsecured revolving credit facility for the global water technology company. This was one of the first sustainable improvement loans in the U.S. and the first in the general industrial sector.
- Infinity Water Solutions: Wells Fargo advised in the structuring of the Blue Circular Economy Financing Framework, which received a Second Party Opinion from Moody’s.
- Texas Water Development Board: Wells Fargo was an underwriter for the water planning agency’s SWIRFT series 2023A and taxable series 2023B, which helped to finance water treatment and flood control infrastructure projects.
Smart water technologies are smart investments
Water scarcity in the American Southwest is reshaping business strategies and driving innovation across key sectors.
By Shaun Roberts, sustainability insights specialist at Wells Fargo
October 30, 2025
3-minute read
In the U.S., the American Southwest is ground zero for severe water shortages. The region known for its sweeping deserts and rugged terrain faces rising temperatures, decreasing rainfall, increased evaporation, and the long-term reduction of mountain snowpack.
These factors affect states like Arizona, California, Colorado, Nevada, New Mexico, Utah and Wyoming, that rely heavily on surface water from the Colorado River. The Colorado River Compact, which divided the river’s water between the upper and lower states, allocated more water than what is actually available — a problem that is made worse by drought.
In a study that examined data from 2003-2024, researchers found the river basin lost 42.3 million acre-feet of water storage, and water availability is forecast to drop 20-30% by 2050. The projected decline is expected to further challenge water management resources and increase demand for smart water management systems.
But Southwestern and Mountain West states are not alone. Water scarcity is also impacting neighboring states like Texas, which primarily relies on groundwater from aquifers that landowners can tap into. In some areas, this dynamic contributes to shortages as groundwater is extracted faster than it can be naturally replenished.
Combined, these challenges create a financial risk for water-intensive industries like agriculture, energy, and manufacturing, where limited water availability signals higher costs, supply chain disruptions, and the risk of other operational impacts.
Smart water technologies can enhance water resilience
Emerging smart water technologies are helping to address water scarcity, encouraging business owners to reuse or use less water to manage operations. These systems — encompassing hardware, software, and data analytics — provide real-time data on equipment performance and distribution networks that water managers can use to conserve resources and improve efficiency. In industrial settings, technology can detect leaks, predict equipment failure, optimize operations, and create cost savings.
In Richmond, Virginia, the city installed digital technology to identify issues across its sewer system. The application uses current weather conditions to predict when an overflow might occur and provide visibility to help optimize capacity and enable data-driven decision-making.
Examples of Wells Fargo’s water-related financial support
Water reuse technologies can create new business opportunities
In addition to smart water technologies, water reuse is a growing opportunity for municipalities, tech companies, and agriculture. Through technological innovation, water management companies can reclaim water from sources like industrial and municipal waste and transform it into fit-for-purpose water for irrigation, cooling, and potable and non-potable uses.
Infinity Water Solutions’ work in the Permian Basin — a large sedimentary basin in west Texas and southeastern New Mexico that is home to the most productive oil field in the U.S. — demonstrates how water reuse can build resilience. Infinity leverages cutting-edge technologies to reclaim wastewater and recycle it through their closed-loop, zero-liquid discharge systems. The result is a reliable, drought-resilient water supply that supports customers across energy, agriculture, and industrial sectors, while helping reduce freshwater demand and environmental impact.
“Water reuse is one of the most actionable ways we can protect human health and future-proof our resources. It bolsters drought resilience, preserves freshwater for its highest and best uses, and catalyzes meaningful economic growth. From creating high-paying jobs to diversifying local skill sets and strengthening tax bases, water reuse delivers real, measurable public good both locally and globally.”
Other solutions to refine water — like advanced filtration systems, chemical treatments, and scalable desalination or extraction — can transform wastewater into energy, fertilizers, and recovered materials. These processes remove impurities and nutrients like phosphorus and nitrogen, contributing to a circular water economy and promoting sustainability.
As drought conditions intensify in the American Southwest, innovative solutions like water monitoring, water reuse, and wastewater recycling are vital to manage water scarcity impacts. These tools provide water-dependent industries cost-saving opportunities, risk management, and operational resiliency.