Microsoft has announced a new data center design that eliminates the need for water for cooling, marking a major milestone in the company's commitment to environmental sustainability. Launched in August 2024, this design leverages chip-level cooling solutions to provide precise temperature control without relying on water evaporation.
While water will continue to be used for essential purposes such as toilets and kitchens, the new design is expected to save over 125 million liters of water per year per data center.
“AI depends on water – and so do we. We're proud that Microsoft's new data centers will use no water for cooling, meaning each individual data center will save 125 million liters of water every year. Thank you to the teams paving the way for a more sustainable future,” said Mustafa Suleyman, CEO of Microsoft AI.
How Microsoft saves water
Microsoft measures water efficiency using Water Usage Effectiveness (WUE), which compares water usage to energy usage. The company has improved its WUE over the years, achieving an average of 0.30 L/kWh in the last financial year. With the introduction of zero water evaporation technology, Microsoft expects to reduce the WUE to near zero for each new data center.
This shift to a The closed cooling system, in which the water is continuously recycled, eliminates the need for a fresh water supply. While this approach may slightly increase energy consumption, Microsoft is actively developing innovations – such as nuclear energy – to mitigate these impacts and further reduce power consumption.
Pilot projects of the new waterless design are planned for 2026 in Phoenix, Arizona and Mt. Pleasant, Wisconsin.
How much energy is used by an AI query?
According to a report released earlier this year, Microsoft's water usage for its data centers rose to 6.4 million cubic meters in a single year, up from 4.7 million cubic meters the previous year. This was accompanied by a 34% increase in the company's energy consumption.
By 2027, global AI demand could extract 4.2 to 6.6 billion cubic meters of fresh water – almost half the amount used by the entire UK.
