Microsoft has unveiled a new generation of data centres that no longer use water for cooling, an approach the tech giant says is a major step toward a more sustainable future for the cloud industry.
Microsoft claims to be able to provide precise temperature control without water evaporation by using cooling solutions at the chip level. “While water is still used for things like toilets and kitchens on the site, this design will eliminate the need for more than 125 million litres of water per year per data centre,” it said.
Closed loop
Microsoft’s zero-water technology recycles water in a closed loop, unlike existing data centre cooling systems. After the system is filled during the data centre’s construction, it continuously circulates water between the servers and coolers, removing heat without the need for a freshwater supply.
Such chip-level cooling systems can be critical in regions where water is scarce. That is partly why Microsoft is starting pilot projects in 2026 in Phoenix, Arizona, USA, which has a desert climate, and Mount Pleasant, Wisconsin, to test the new zero-water cooling systems in practice. The goal is to eventually equip all Microsoft data centres with the latest cooling technology.
WUE reduction
Microsoft has made significant strides in improving its data centres’ water and energy efficiency in recent years. In the last fiscal year, its data centres operated at an average WUE, or Water Usage Effectiveness, of 0.30 L/kWh. According to the company, that’s a 39 percent improvement compared to 2021, when it reported a global average of 0.49 L/kWh.
“This WUE reduction is due to our ongoing efforts to actively reduce water waste, expand our operating temperature range, and review our data centre operations,” Microsoft said. The tech giant also expanded its use of alternative water sources, such as reused and recycled water, in Texas, Washington, California, and Singapore.