Microsoft unveils zero-water data centres to reduce AI climate impact

MICROSOFT, trying to mitigate the climate impact of its data centre 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 litres of water each data centre typically uses per year, the company said. The new system uses a “closed loop” to recycle water; the liquid is added during construction and continually circulated – obviating the need for fresh supplies.

Data centres will still require fresh water for worker facilities such as bathrooms and kitchens.

Microsoft spent more than US$50 billion on capital expenditures in the fiscal year ended Jun 30, the vast majority related to data centre construction fuelled by demand for artificial intelligence (AI) 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 such as Arizona and Texas, making it even more critical to find ways to conserve water.

Microsoft’s existing data centres 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. BLOOMBERG

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