Microsoft’s Cooling Tech Reduces Water Use In Data Centres

March 5, 2025
by Dominic Shales

Microsoft has introduced a groundbreaking closed-loop liquid cooling system aimed at drastically reducing water consumption in its data centres, contributing to significant water conservation efforts.

Microsoft has unveiled a pioneering cooling technology that aims to virtually eliminate water usage across its data centres, a move expected to save tens of billions of litres of water over the lifespan of its facilities. This advancement, launched in August 2024, is particularly significant in addressing the growing water scarcity issues faced by many regions.

The new system, part of Microsoft’s Datacenter Community Pledge, focuses on optimising artificial intelligence (AI) workloads while significantly conserving water, which is critical in areas prone to drought and water shortages. Rather than employing traditional water evaporation techniques for cooling, this innovative design utilises chip-level liquid cooling, allowing for precise temperature control without relying on water evaporation.

While the system will still use water for administrative purposes such as restrooms and kitchens, the cooling mechanism itself operates on a closed-loop system. This means that water is continuously circulated between servers and chillers without the need for replenishment. Microsoft highlights that closed-loop liquid cooling has been a standard practice among overclockers for years, making it a fitting solution for the high demands of modern data centres.

To measure water efficiency within these facilities, Microsoft employs the Water Usage Effectiveness (WUE) metric, which compares water consumption to energy use. With the adoption of closed-loop liquid cooling, the company anticipates saving over 125 million litres of water annually for each data centre. “We have been working since the early 2000s to reduce water use and improved our WUE by 80% since our first generation of data centres,” stated Steve Solomon, Vice President of Datacenter Infrastructure Engineering at Microsoft. He further noted, “As water challenges grow more extreme, we know we have more work to do. The shift to the next generation data centres is expected to help reduce our WUE to near zero for each data centre employing zero-water evaporation.”

Pilot projects for the zero-water evaporation cooling technology will be established in new data centres located in Phoenix, Arizona, and Mt. Pleasant, Wisconsin, with operations set to commence in 2026. Following this, all future Microsoft data centres are expected to implement this innovative cooling method, with the first locations anticipated to be operational by 2027.

Noelle Walsh, Microsoft’s Corporate Vice President of Cloud Operations and Innovation explains more about how Microsoft datacenters are designed, constructed, and operated.

While the transition to this new cooling technology may lead to increased power usage effectiveness (PUE), as mechanical cooling generally requires more energy, Microsoft plans to mitigate this rise in demand through the use of high-efficiency economising chillers and by operating at elevated cooling temperatures, ensuring that energy consumption remains as efficient as possible.

This development represents a significant stride towards sustainable data management practices, focusing on reducing environmental impacts while supporting local water conservation efforts, thus positioning Microsoft as a leader in the realm of green technology solutions within the data centre industry.