AI data centres are less thirsty now, tech giants say

NEW YORK – Data centres are running into a wall of public anger in the United States over their thirst for water and power.

The tech giants spending billions of dollars on them say the water part, at least, is solvable.

Data centres are the warehouses full of computer servers that run the internet and, increasingly, artificial intelligence.

The computers get hot and keeping them cool takes water.

American chip giant Nvidia said in a June report that it can eliminate water consumption almost entirely at some facilities when deploying DSX, its newest system for designing and managing AI data centres.

It is a bold claim and one that the industry is under mounting pressure to make good on.

In 2025, data centres consumed 222 billion litres of water worldwide for cooling, according to consultancy Rystad Energy.

Without adaptive measures, the figure could nearly triple to 644 billion litres by 2030, Rystad estimates. Steps to limit the growth could keep it under double.

Nvidia’s new method uses a closed-loop cooling system in which liquid flows directly through the servers, as close as possible to the chips, whose temperature can rise above 80 deg C.

The problem is that “there’s a pretty direct trade-off between how much water is used and how much energy is used” for temperature control, said Andy Masley, an independent researcher who covers AI and data centres.

Cutting back on water use usually means more power as the liquid in those sealed pipes still has to be cooled down somehow, usually by blowing air over it – and that takes electricity.

Nvidia gets around some of this by letting the liquid enter the servers warmer than usual, at 45 deg C.

Most other closed-loop systems ran at about 32 deg C in 2024, according to the Uptime Institute, which certifies data centres.

By starting with warmer water, Nvidia does not need to pump in cooled air year-round.

Josh Parker, Nvidia’s head of sustainability, said “simple fans circulating the air” are often enough, although sometimes, a mix of methods is needed.

At sites in extreme climates, or during a heatwave, chill airflow or water evaporation is still necessary.

Public relations

Microsoft, Amazon Web Services (AWS) and Meta told AFP that they also use closed-loop systems, which they said involve no net water loss.

The two cloud computing giants, which have been expanding their already huge data centre footprints, used more water overall between 2022 and 2025, but the water-use efficiency improved by 25 per cent at Microsoft and 37 per cent at AWS, according to their most recent sustainability reports.

There is no industrywide consistency, however, in how companies report data on so-called environmental, social and governance (ESG) efforts.

Elon Musk’s SpaceX, now a major player in data centres after it acquired his AI company, xAI, has never published an ESG report.

In June, ratings agency MSCI gave SpaceX its lowest ESG score.

Ren Shaolei, an engineering professor at the University of California, Riverside, said that “because water is generally much cheaper than electricity”, companies have less incentive to cut water use on cost grounds alone.

There are incentives, Ren said, but they have more to do with public relations amid the growing backlash to data centres across the US.

Another obstacle is that upgrading an older data centre to newer, less thirsty technology is expensive.

This may matter less than it sounds.

Older data centres are smaller and less powerful than the enormous new ones being built now, so they need less cooling in the first place, said Minh Khoi Le, who leads data centre and hydrogen research at Rystad.

And the water a data centre uses directly is only part of the story.

Water is used to generate the electricity that powers the data centre and to manufacture its chips and servers.

In the US, that hidden water use can be twice the amount a data centre consumes on its own. AFP