Tech Giants Say AI Data Centers Are Using Less Water

AI data centers are facing a wave of public anger in the United States because of their heavy demand for water and energy. The technology giants building them say the water problem can, at least in part, be solved.

Nvidia says its latest system for designing and managing AI data centers, DSX, can almost eliminate water consumption at some facilities. The system uses closed-loop cooling, sending liquid directly through the servers and close to chips whose temperature can rise above 80°C.

The approach does not remove every difficulty. “There’s a pretty direct trade-off between how much water is used and how much energy is used” for temperature control, independent researcher Andy Masley said. Water savings can require more electricity because the liquid in sealed pipes still has to be cooled, usually by blowing air across it.

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There’s a pretty direct trade-off between how much water is used and how much energy is used

Nvidia allows the liquid to enter servers at 45°C, warmer than the roughly 32°C used by most other closed-loop systems in 2024, according to the Uptime Institute. Josh Parker, Nvidia’s sustainability director, said “simple fans circulating the air” are often enough. In extreme climates and during heat waves, however, chilled airflow or water evaporation remains necessary.

Microsoft, Amazon Web Services and Meta told AFP that they also use closed-loop systems with no net water loss, although the article notes that companies report environmental performance inconsistently. Rystad Energy estimates that data centers used 222 billion liters of water for cooling worldwide in 2025. Without adaptation, that could nearly triple to 644 billion liters by 2030.

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Simple fans circulating the air