Microsoft has announced a new data centre design that eliminates water usage for cooling, marking a significant milestone in the company’s commitment to environmental sustainability. Launched in August 2024, this design utilises chip-level cooling solutions to control precise temperature without relying on water evaporation. While water will still be used for essential purposes like restrooms and kitchens, the new design is projected to save over 125 million litres per year per data centre.
“AI depends on water—and so do we. Proud that Microsoft’s new data centres will consume zero water for cooling, meaning each one will avoid using 125 million litres of water every year. Thanks to the teams paving the way for a more sustainable future,” said Mustafa Suleyman, CEO of Microsoft AI.
How Microsoft is saving water
Microsoft measures water efficiency using Water Usage Effectiveness (WUE), which compares water consumption to energy consumption. The company has improved its WUE over the years, achieving an average of 0.30 L/kWh in the last fiscal year. With the introduction of zero-water evaporation technology, Microsoft expects to reduce its WUE to near zero for each new data centre.
This shift to a closed-loop cooling system, where water is recycled continuously, eliminates the need for a freshwater supply. While this approach may slightly increase energy consumption, Microsoft is actively developing innovations—like nuclear energy—to mitigate this impact and further reduce power usage.
Pilot projects featuring the new water-free design are planned for Phoenix, Arizona, and Mt. Pleasant, Wisconsin, in 2026.
How much energy is used in an AI query?
According to a report released earlier this year, Microsoft’s water consumption for its data centers surged to 6.4 million cubic meters in a year, up from 4.7 million cubic meters the previous year. This coincided with a 34% increase in the company’s energy consumption.
By 2027, global AI demand may withdraw 4.2 to 6.6 billion cubic meters of freshwater—nearly half the amount consumed by the entire UK.
