Reducing data center water consumption in the AI era
The rapid expansion of artificial intelligence is driving the construction of increasingly large data centers, pushing up data center water consumption, electricity demand, and carbon emissions.
To meet their cooling requirements, developers are drawing more heavily on freshwater resources, raising concerns about the impact on surrounding communities. Large-scale data centers can consume as much water as a city with a population of between 10,000 and 50,000 people.
Following recent announcements from Google, Amazon, and Nvidia, Microsoft has released an update highlighting how companies leading the AI boom are responding to mounting concerns over the environmental footprint of expanding digital infrastructure.
Microsoft says new AI data centers no longer require cooling water
Microsoft said its latest AI-focused data center designs require no water for cooling during normal operations. According to the company, this achievement is part of a broader strategy that has improved water efficiency by nearly 90% compared with the early 2000s.
Across its owned data center fleet, Microsoft aims to improve data center water consumption intensity by 40% by 2030. The company reported that it had already reduced water use intensity by 25% in 2025. During fiscal year 2025, Microsoft also said it reached a major milestone toward its 2030 water positive commitment by replenishing more water annually than it withdraws.
Public opposition to data centers continues to grow
Microsoft is advancing cooling technologies and improving water resource management at a time when public opposition to data center development is intensifying. According to a Gallup survey published in May, nearly 70% of Americans oppose the construction of data centers in their communities, with concerns over water and energy use ranking as the two primary reasons.
Global electricity consumption by data centers, estimated at 448 TWh in 2025, could rise to 945 TWh by 2030. The associated global water footprint is estimated at 9.3 trillion liters.
Most existing Microsoft facilities still rely partly on water
Most of Microsoft’s existing data center fleet still uses some water for cooling. The company said many facilities rely primarily on outside air cooling systems and require water only periodically.
In Phoenix, for example, some Microsoft data centers use evaporative cooling systems that depend on water only when temperatures rise above approximately 30°C, Steve Solomon, Microsoft’s Vice President of Data Center Engineering, told Axios.