Yes, there are many places in the US that are currently having infrastructure crises due to too little density. There might need to be infrastructure upgrades as neighborhoods become denser, but over the long run, the infrastructure will be much more sustainable because the cost per user will be significantly lower.
Also, infrastructure like water treatment plants are expensive and scale well, so you can spread the cost over more people.
But yes, there are problems that come with density and they have to be thought through.