Microsoft Corp. has unveiled a cooling system for its data centres that eliminates the need for fresh water, aiming to reduce the environmental impact of its rapidly expanding infrastructure. Launched in August, the new design features a “closed-loop” system that recycles water continuously after an initial fill during construction, cutting annual water consumption by more than 125 million litres per data centre.
While fresh water will still be required for worker facilities such as kitchens and bathrooms, the innovative cooling system marks a significant step toward sustainability, especially as many of Microsoft’s new data centres are located in arid regions like Arizona and Texas.
The tech giant, which spent over $50 billion on capital expenditures—primarily for data centre construction—in the fiscal year ending June 30, plans to exceed that figure this year to meet the growing demand for AI-powered services. The shift to zero-water designs will begin with new projects in Phoenix, Arizona, and Mount Pleasant, Wisconsin, set to open in 2026.
Existing data centres will continue using a mix of older cooling technologies, but Microsoft’s commitment to reducing energy and water use is central to its broader sustainability goals.
