Microsoft unveils next-generation datacenters with zero-water cooling technology

Microsoft has announced a groundbreaking advancement in sustainable technology with the launch of its next-generation datacenter design that consumes zero water for cooling. This initiative, which began in August 2024, marks a significant step in the company’s commitment to environmental stewardship, particularly in regions experiencing increasing water stress.

The new datacenter design utilizes chip-level cooling solutions to optimize temperature control without relying on water evaporation. By employing a closed-loop water recycling system, water is continually circulated between servers and chillers, eliminating the need for a fresh water supply after the initial system is filled. This innovative approach is expected to save more than 125 million liters of water annually per datacenter, contributing significantly to global water conservation efforts.

Microsoft measures water efficiency through a metric known as Water Usage Effectiveness (WUE), which evaluates the water used for cooling and humidification in relation to energy consumption. In the past fiscal year, Microsoft achieved a WUE of 0.30 L/kWh, a 39% improvement from 2021 when the figure was 0.49 L/kWh. This advancement builds on years of effort, with an 80% improvement in WUE since the early 2000s. The transition to zero-water cooling systems is expected to further reduce WUE to near zero for the datacenters utilizing this technology.

While replacing evaporative cooling systems with mechanical ones results in a slight increase in Power Usage Effectiveness (PUE), Microsoft has introduced high-efficiency economizing chillers with elevated water temperatures. This approach offsets the additional energy demand while maintaining sustainable cooling practices. These systems represent a balanced strategy to reduce water dependency while managing energy efficiency.

Pilot projects for the new zero-water evaporated designs are set to begin in Phoenix, Arizona, and Mt. Pleasant, Wisconsin, in 2026. New datacenter designs, coming online starting in late 2027, will adopt the zero-water cooling technology, advancing Microsoft’s efforts to integrate sustainability into its global infrastructure. As part of its Datacenter Community Pledge, which emphasizes protecting local watersheds, specially in areas where water stress is increasing, Microsoft continues to lead the way in sustainable innovation. This next-generation design not only reduces the environmental footprint of its operations but also sets a new standard for the industry.