Modular, decentralized systems: A parallel infrastructure shift
Both the IT and utility sectors face increasing pressure to modernize outdated infrastructure to keep pace with technology’s rapid advances.
Chief Information Officers have embraced technologies, such as cloud computing and modular IT architectures, to transform digital infrastructure into dynamic, modular, cloud-based systems. Now, a similar evolution is taking place in the utility sector: modular water systems are reshaping physical infrastructure. This includes innovative service models, like water-treatment-as-a-service, pioneered by companies such as Seven Seas Water Group.
Water and wastewater systems, known for their centralized, capital-intensive infrastructure, are following the same principles that fuel agility in the tech industry. CIOs have embraced decentralized, scalable infrastructure to meet demand and improve resilience. Now utility leaders are turning to modular, decentralized water treatment solutions to solve increasingly complex challenges.
The shift isn’t just about technology. It’s about rethinking the way we do things. It may seem that the realms of CIOs and utility planners are poles apart, but, whether managing servers or sewage, there is much common ground.
The Traditional Model: Centralized, Rigid, and Costly
For decades, water utilities—much like IT departments of the past—relied on a centralized infrastructure model. Large-scale water and wastewater treatment plants were built to serve entire regions, requiring massive upfront capital investment and years of planning and construction. These systems were typically designed with capacities based on long-term population forecasts, often spanning decades. The rationale was to build one big system that will serve the broader community for several decades.
But that centralized model has its limitations. Procurement and deployment timelines are extremely slow, often taking several years. The initial upfront costs are exorbitant, stretching already limited public budgets. Once these systems are completed, they are hard to scale up or adapt to changing demands or environmental conditions.
Also, centralized water systems leave communities vulnerable to disruptions. A sudden population boom, an unexpected drought, or even a single equipment failure can push the system to its breaking point. An outage at a major facility, for example, due to flooding, can cripple service delivery, affecting thousands, if not millions, of people, posing a significant public health risk.
For CIOs, this is familiar. Before the rollout of cloud-based systems, IT infrastructure also relied heavily on massive, centrally-located data centers that were capital-intensive and offered minimal flexibility.
Whether managing data or delivering clean water, relying on rigid legacy infrastructure leaves organizations behind in a world that increasingly demands efficiency, scalability, and resilience.
The Shift to Modular and Decentralized Systems
In response, water and wastewater utilities are beginning to adopt modular, decentralized infrastructure — a shift that closely parallels the move from traditional data centers to cloud-based IT.
Modular water systems are redefining how communities and industries access clean water, offering a level of speed, flexibility, and resilience that traditional infrastructure struggles to match. These systems typically consist of package plants — pre-engineered modular treatment units that can be delivered and installed in a fraction of the time it takes to build a conventional facility. These systems are fast and scalable so that operators can expand capacity as demand grows.
Containerized solutions, housing fully functional water or wastewater treatment systems in standard shipping containers, take portability a step further, offering an unprecedented level of mobility. Because these self-contained units are easy to transport and quick to activate, they are ideal for remote locations, disaster response, or temporary installations.
At the broader level, decentralized infrastructure shifts water treatment closer to the point of use, reducing costs, and improving efficiency and resilience. Unlike centralized systems that are capital-intensive with often unpredictable operating expenses, decentralized solutions offer greater cost predictability with more manageable operating expenses, often through water-treatment-as-a-service models.
Together, these solutions provide scalable, resilient water treatment without the time, cost, and vulnerability of centralized plants. This is similar to the journey from on-prem to cloud—where flexibility, responsiveness, and service-based delivery models are the new normal.
Lessons for CIOs and Utility Leaders
What can CIOs and utility executives learn from each other?
- Start Small, Scale Fast: Avoid overbuilding. Modular systems that can be easily scaled up work in both the IT and utility sectors. These systems are more adaptable and efficient than building an oversized system to accommodate future growth.
- Decentralize to Reduce Risk: Distribute capacity to avoid single points of failure. Server farms and treatment plants both benefit from minimizing single points of failure.
- Adopt As-a-Service Thinking: Turn capital projects into operational services — align cost with use. Turning CapEx into OpEx, whether through cloud computing Infrastructure-as-a-Service (IaaS) or Water-as-a-Service (WaaS), frees organizations to focus on outcomes rather than ownership.
- Enable Resilience Through Modularity: Like containerized software, modular water plants offer greater flexibility, portability, and scalability, and can be redeployed, upgraded, and adapted.
With this approach, leaders can future-proof their systems.
Real-World Application
Forward-thinking companies are already applying modular design and service-based delivery in the water space. For example, in rapidly growing Florida communities, modular plants are deployed in phases to match population growth—avoiding over-investment while ensuring communities receive reliable services. In the Caribbean, containerized systems provide hurricane-resilient water treatment in areas where traditional infrastructure would be vulnerable or slow to rebuild.
These deployments embody the same principles CIOs use when choosing cloud platforms: agility, uptime, and cost control.
Bridging the Physical and Digital Infrastructure Gap
As climate risks intensify, cities expand, and budgets tighten, both CIOs and utility leaders face a shared challenge: future-proofing critical infrastructure. The days of relying on oversized, centralized systems, whether data centers or water treatment facilities, are giving way to a smarter, more nimble approach.
By embracing modularity, scalability, and service-based models, leaders can respond to change faster, reduce risk, and align resources with real-world needs, well positioned to lead the next era of smart, adaptive infrastructure.
