Microsoft Corp. has introduced a new data center design aimed at eliminating water usage for cooling chips and servers, as part of its efforts to reduce its environmental impact.
Launched in August, this innovative system replaces traditional cooling methods, which typically consume over 125 million liters of water annually per data center.
The design utilizes a “closed-loop” system that recycles liquid added during construction, eliminating the need for continuous fresh water supply, according to Bloomberg.
Microsoft’s new data center design significantly reduces water usage for cooling, but fresh water will still be required for facilities like bathrooms and kitchens.
In the fiscal year ending June 30, the company spent over $50 billion on capital expenditures, mostly for data center construction driven by the growing demand for artificial intelligence services.
This figure is expected to rise further, increasing energy and water requirements.
With many new centers being built in hot, arid regions such as Arizona and Texas, water conservation measures like the closed-loop cooling system are becoming increasingly essential.
Microsoft’s existing data centers will continue operating with a mix of traditional cooling technologies.
However, starting in 2026, new facilities in Phoenix, Arizona, and Mount Pleasant, Wisconsin, will adopt the zero-water cooling design, marking a significant step toward reducing water consumption in future projects.
