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Microsoft Says New AI Data Centers Use No Water for Cooling

June 24, 2026 at 08:08 EDT

Infra & Chips
Policy & Regulation

Microsoft has reiterated that its latest data center design for AI consumes no water for cooling during normal operation. The message comes as concern over AI-driven water use grows in communities, and the company is pointing to its technical approach. According to Axios, Microsoft says roughly 90% of its existing fleet already runs on low- or zero-water cooling systems.

June 2, 2026 · Microsoft Build 2026

A Data Center That Sips Like a Single Restaurant

Microsoft's next-gen AI facilities use a closed cooling loop — filled once at construction, then recirculated — to draw "zero water for cooling" in normal operation. CEO Satya Nadella says annual water use per site would roughly equal that of one restaurant.

~90%

of owned facilities run on low- or zero-water cooling

125M+

liters of water avoided per facility, per year

2027

full operation expected (late)

Water efficiency (WUE), liters per kWh — lower is better

Each block ≈ 0.05 L/kWh. Shorter column = less water used.

0.49

2021

0.30

Now

39% better than 2021 — and ~80% better than the early 2000s.

How the closed loop works

Fill once

Loop filled at construction

→

Chip-level cooling

Liquid circulates over servers

→

Recirculate

No evaporation, no top-up

Pilot sites: Phoenix, Arizona and Mt. Pleasant, Wisconsin. Remaining water serves only management uses — restrooms and kitchens.

The progress

Closed-loop cooling cuts direct cooling-water use toward zero and helped revise down an internal projection that water use could double by 2030.

The caveat

Many existing sites still use water, and indirect water from power generation (especially natural gas) is unaddressed. Local skepticism — and real-world verification — remains.

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