Microsoft’s Water-Free Datacenter Design Tackles Major AI Sustainability Challenge
Summary
Microsoft’s new water-free datacenter design, launched in August 2024, eliminates the use of water for cooling by leveraging chip-level cooling technology. This innovation is projected to save 125 million liters of water annually per datacenter. While slightly increasing energy consumption, the system utilizes a closed-loop cooling method and aims to achieve near-zero Water Usage Effectiveness (WUE). Pilot projects are planned for 2026 in Phoenix, Arizona, and Mt. Pleasant, Wisconsin. The design addresses growing concerns about the environmental impact of AI, which is predicted to significantly increase global water and energy consumption by 2027.
Microsoft has unveiled a groundbreaking datacenter design that eliminates water usage for cooling, a key step in addressing sustainability concerns amid rising AI demands. Launched in August 2024, the design features chip-level cooling technology, enabling precise temperature control without water evaporation. While water will still be used for basic facility needs, the new system is expected to save over 125 million liters of water annually per datacenter.
“AI depends on water—and so do we. Microsoft’s new datacenters will avoid using 125 million liters of water every year for cooling.
How Microsoft is Saving Water
The company has historically measured water efficiency using Water Usage Effectiveness (WUE), achieving an average of 0.30 L/kWh last year. With its zero-water evaporation technology and a closed-loop cooling system that recycles water continuously, Microsoft aims to bring WUE to nearly zero in future datacenters. While this innovation may increase energy consumption, Microsoft is exploring solutions like nuclear energy to offset the impact.
Pilot projects for the water-free design are slated for Phoenix, Arizona, and Mt. Pleasant, Wisconsin, by 2026.
AI’s Growing Water and Energy Demands
Microsoft’s water consumption for datacenters surged to 6.4 million cubic meters in a single year, reflecting a 34% increase in energy use due to expanding AI infrastructure. A global report predicts that by 2027, AI-related operations could consume up to 6.6 billion cubic meters of freshwater annually, nearly half of the UK’s current usage.
Microsoft’s innovative cooling design offers a critical solution to mitigate AI’s environmental footprint while paving the way for sustainable datacenter operations.