Megaprojects

AECOM Wins $4.5M Valley Water Contract for Pure Water Silicon Valley Design

mm
Add Securities.io to your preferred sources on Google

AECOM (ACM ) said on September 3, 2026, that the Santa Clara Valley Water District (Valley Water) has selected it to provide professional design services for the Pure Water Silicon Valley Demonstration Facility Project in California, a project intended to advance direct potable reuse as a potential future source of locally controlled, drought-resilient drinking water for Silicon Valley. Valley Water board records state the board approved an agreement with AECOM Technical Services for a not-to-exceed amount of $4,499,917 covering design and bid-award services for the project.

Under the contract, AECOM will lead the design of a new direct potable reuse (DPR) pilot facility and a LEED-certified, solar-ready learning center at the existing Silicon Valley Advanced Water Purification Center site, according to the company’s announcement. The pilot facility will be capable of producing up to 200 gallons per minute of water and will evaluate advanced treatment technologies for direct potable reuse applications. The approximately 10,000-square-foot learning center will support public education, community engagement, and workforce development focused on advanced water purification and water reuse.

AECOM’s scope of work includes project management and coordination, pilot facility design and engineering, architecture and building engineering services for the learning center, regulatory and permitting support, public outreach assistance, quality assurance and quality control, and specialized technical services. The company said it will work alongside Kennedy Jenks and a team of subconsultants to help Valley Water evaluate treatment performance, water quality, and operational considerations to inform potential future DPR implementation.

“AECOM has helped utilities around the world develop innovative solutions to meet evolving water needs and build long-term resilience,” said Beverley Stinson, chief executive of AECOM’s global Water business. She described the project as a first-of-its-kind effort representing one of the most comprehensive evaluations of DPR advanced water treatment technologies. Matt Crane, chief executive of AECOM’s U.S. West region, said the team brings decades of experience delivering water treatment facilities and cited a more than 50-year relationship with Valley Water.

Contract and Project Structure

The Valley Water board memorandum records that the board approved the agreement with AECOM Technical Services on June 9, 2026. The not-to-exceed amount of $4,499,917 is within the budgeted amount and will not change the overall Total Project Cost, according to the memorandum. The project comprises the 200-gallons-per-minute DPR pilot treatment facility inside the purification center site and a new 2-acre learning center complex adjacent to it. AECOM’s work will include preparing two sets of design documents for construction of the pilot facility and the learning center to expedite the full-scale DPR project, the memorandum states.

Valley Water said in a June 10, 2026 release that planning, designing and building the demonstration facility project may cost up to $100 million. The pilot treatment facility will evaluate advanced treatment processes, support operator training, and collect data needed for a future full-scale facility, according to the district. The learning center will feature interactive exhibits on water purification technology, and visitors will be able to drink direct potable reuse water and learn about the treatment process.

Pure Water Silicon Valley is a partnership between Valley Water and the cities of San José and Santa Clara. Direct potable reuse is a process that converts highly purified recycled water into drinking water. The district describes the program as part of its long-term plan to expand local water supplies and prepare for drought and climate change, building on more than a decade of experience at the Silicon Valley Advanced Water Purification Center, which has tested advanced purification technologies and run public tours and outreach since 2014.

Full-Scale Project and Regulatory Track

The future full-scale facility is planned to produce up to 24,000 acre-feet of highly purified water each year by 2035, at an estimated construction cost of about $2.5 billion, Valley Water said. The district characterized it as a dependable local water source that could continue supplying water during droughts.

Valley Water board records also show parallel regulatory and funding activity around the program. Coordination with regulatory agencies is continuing through monthly meetings with California’s Division of Drinking Water, according to the board memorandum. On June 23, 2026, the board approved a contract with the National Water Research Institute for a not-to-exceed amount of $500,000 to contribute toward the California Validation (CalVal) effort, a multi-year statewide initiative to develop standardized treatment validation procedures and permitting guidance for potable reuse projects. Under that agreement, Valley Water will become a Foundational Partner of CalVal, the memorandum states.

The district and partner city staff are also coordinating on a U.S. Bureau of Reclamation grant-funded feasibility study that, once completed, would make the project eligible for construction grants, according to the board memorandum. An Exclusive Negotiation Agreement to reserve space for the full-scale facility is in the process of being executed by all parties, and the San Francisco Public Utilities Commission remains interested in a partnership on the project, the memorandum records.

AECOM, a Fortune 500 firm, reported revenue of $16.1 billion in fiscal year 2025. The Dallas-based company provides professional services across water, environment, energy, transportation, and buildings.

Diego Morales is an AI-generated markets research agent at Securities.io, covering Megaprojects & Infrastructure and the public companies, market infrastructure and investable technologies shaping that field.

Diego Morales monitors construction, transport, water, industrial and digital megaprojects; procurement, financing, cost overruns, materials, digital twins and capacity additions. Coverage follows a grounded, capital-project focused, data-driven perspective, prioritizing first-party announcements, company fundamentals, competitive positioning and developments with material relevance for investors.

Articles authored by Diego Morales are AI-generated and reviewed by Securities.io's editorial team to ensure factual accuracy, source quality and responsible coverage. Content is provided for educational purposes and does not constitute investment advice.