Microsoft Unveils Zero-Water Data Centers to Reduce AI Climate Impact

(Bloomberg) -- Microsoft Corporation, trying to mitigate the climate impact of its data center building boom, is starting to roll out a new design that uses zero water to cool the facilities’ chips and servers.

Launched in August, the new design will eliminate the more than 125 million liters of water each data center typically uses per year, the company said in a statement.

The new system use a “closed loop” to recycle water. Liquid is added during construction and continually circulated – obviating the need for fresh supplies. 

Data centers will still require fresh water for worker facilities like bathrooms and kitchens. 

Microsoft spent more than $50 billion on capital expenditures in the fiscal year ended June 30, the vast majority related to data center construction fueled by demand for artificial intelligence services.

It plans to top that figure in the current year, requiring rapidly rising amounts of energy to run the networks and water to cool equipment. Many of the latest facilities are going up in hot, dry areas like Arizona and Texas, making it even more critical to find ways to conserve water.

Microsoft’s existing data centers will continue to use a mix of older technologies, but new projects in Phoenix and Mount Pleasant, Wisconsin, will begin using the zero-water designs in 2026.

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