AI data centers are less thirsty now, tech giants say
AI data centers are facing public backlash due to their high water and power consumption. Tech giants like Nvidia, Microsoft, Amazon, and Meta are implementing or reporting on closed-loop cooling systems to significantly reduce water usage. Google also announced a substantial $40 billion investment in new data centers in Texas.
The high water and power consumption of data centers, particularly those for artificial intelligence, is drawing increasing public criticism across the United States. Technology leaders are responding to this pressure by developing and implementing solutions to reduce their environmental footprint.
Nvidia has introduced its DSX system, which utilizes a closed-loop liquid cooling method that circulates warmer liquid directly through servers, thereby significantly cutting down on water usage for cooling. Microsoft, Amazon Web Services, and Meta have also reported improved water efficiency with their own closed-loop systems, even as their overall water consumption increased due to expanding data center operations. Separately, Google announced a major $40 billion investment in three new data centers across Texas through 2027, with Texas Governor Greg Abbott and Google CEO Sundar Pichai slated to speak at the Midlothian Data Center in 2025.
Despite these efforts, the industry lacks consistent environmental, social, and governance (ESG) reporting, as highlighted by SpaceX's absence of such reports. Experts note that the relatively lower cost of water compared to electricity provides less financial incentive for companies to reduce water consumption, suggesting that public relations amid growing backlash is a stronger motivator. Additionally, upgrading older data centers to more water-efficient technologies presents a significant financial challenge.