How Microsoft’s Zero-Water Data Centres are Revolutionising AI and Climate Responsibility

In an effort to address the environmental concerns associated with its rapid expansion of data centres, Microsoft is unveiling an innovative cooling system that uses absolutely no water to maintain optimal temperatures for its chips and servers. This groundbreaking design, which was introduced in August, is set to eliminate the staggering volume of over 125 million litres of water that each traditional data centre consumes annually. The new approach employs a sophisticated “closed loop” system, whereby water added during the construction phase is continuously recycled within the facility, thereby eliminating the need for external water supplies for cooling.

It’s important to note that while this advanced cooling system significantly reduces water usage for equipment, data centres will still need fresh water for essential worker amenities, including bathrooms and kitchens. Last fiscal year, which ended on June 30, Microsoft invested more than $50 billion in capital expenditures, predominantly driven by the soaring demand for artificial intelligence (AI) services and the construction of new data centres. This year, the company anticipates surpassing that expenditure, necessitating increasing amounts of energy for network operations and water for cooling purposes.

Many of these new facilities are being established in arid regions such as Arizona and Texas, where the need for water conservation is especially pressing. Although Microsoft’s existing data centres will continue to utilise a combination of traditional cooling technologies for the time being, the company has announced that its upcoming projects in Phoenix and Mount Pleasant, Wisconsin, will implement the zero-water design strategy starting in 2026. This advancement represents a significant step towards sustainable technology practices in an era of escalating climate challenges.