The Straits Times World News
· collected 2026-09-07 · by The Straits Times
Tech giants such as Microsoft, Amazon Web Services (AWS), and Meta claim to have solved the water consumption issue at their AI data centres by implementing closed-loop cooling systems, which use no net water loss. According to Nvidia's June report, its DSX system can eliminate almost all water consumption at some facilities. Industry estimates suggest that data centres consumed 222 billion litres of water worldwide for cooling in 2025 and could nearly triple to 644 billion litres by 2030 if adaptive measures are not taken. The companies argue that using closed-loop systems allows them to reduce water use without increasing energy consumption, although some experts warn that there is still a trade-off between water and power usage.
Written by the local model on 2026-09-07,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
AI data centres are less thirsty now, tech giants say
NEW YORK – Data centres are running into a wall of public anger in the United States over their thirst for water and power.
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centres → say → water
The tech giants spending billions of dollars on them say the water part, at least, is solvable.
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part → spend → them
Data centres are the warehouses full of computer servers that run the internet and, increasingly, artificial intelligence.
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that → run → internet
The computers get hot and keeping them cool takes water.
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keeping → get → water
American chip giant Nvidia said in a June report that it can eliminate water consumption almost entirely at some facilities when deploying DSX, its newest system for designing and managing AI data centres.
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it → say → centres
It is a bold claim and one that the industry is under mounting pressure to make good on.
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industry → mount → pressure
In 2025, data centres consumed 222 billion litres of water worldwide for cooling, according to consultancy Rystad Energy.
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centres → consume → Energy
Without adaptive measures, the figure could nearly triple to 644 billion litres by 2030, Rystad estimates.
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Rystad → triple → 2030
Steps to limit the growth could keep it under double.
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Steps → limit → double
Nvidia’s new method uses a closed-loop cooling system in which liquid flows directly through the servers, as close as possible to the chips, whose temperature can rise above 80 deg C.
The problem is that “there’s a pretty direct trade-off between how much water is used and how much energy is used” for temperature control, said Andy Masley, an independent researcher who covers AI and data centres.
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who → use → AI
Cutting back on water use usually means more power as the liquid in those sealed pipes still has to be cooled down somehow, usually by blowing air over it – and that takes electricity.
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that → cut → electricity
Nvidia gets around some of this by letting the liquid enter the servers warmer than usual, at 45 deg C.
Most other closed-loop systems ran at about 32 deg C in 2024, according to the Uptime Institute, which certifies data centres.
By starting with warmer water, Nvidia does not need to pump in cooled air year-round.
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Nvidia → get → air
Josh Parker, Nvidia’s head of sustainability, said “simple fans circulating the air” are often enough, although sometimes, a mix of methods is needed.
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mix → say → methods
Public relations
Microsoft, Amazon Web Services (AWS) and Meta told AFP that they also use closed-loop systems, which they said involve no net water loss.
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they → tell → loss
The two cloud computing giants, which have been expanding their already huge data centre footprints, used more water overall between 2022 and 2025, but the water-use efficiency improved by 25 per cent at Microsoft and 37 per cent at AWS, according to their most recent sustainability reports.
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efficiency → expand → reports
There is no industrywide consistency, however, in how companies report data on so-called environmental, social and governance (ESG) efforts.
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companies → be → efforts
Elon Musk’s SpaceX, now a major player in data centres after it acquired his AI company, xAI, has never published an ESG report.
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it → acquire → report
In June, ratings agency MSCI gave SpaceX its lowest ESG score.
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MSCI → give → score
Ren Shaolei, an engineering professor at the University of California, Riverside, said that “because water is generally much cheaper than electricity”, companies have less incentive to cut water use on cost grounds alone.
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companies → say → grounds
There are incentives, Ren said, but they have more to do with public relations amid the growing backlash to data centres across the US.
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they → be → US
Another obstacle is that upgrading an older data centre to newer, less thirsty technology is expensive.
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upgrading → upgrade → technology
This may matter less than it sounds.
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it → matter → ?
Older data centres are smaller and less powerful than the enormous new ones being built now, so they need less cooling in the first place, said Minh Khoi Le, who leads data centre and hydrogen research at Rystad.
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who → build → Rystad
And the water a data centre uses directly is only part of the story.
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centre → use → story
Water is used to generate the electricity that powers the data centre and to manufacture its chips and servers.
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that → use → chips
In the US, that hidden water use can be twice the amount a data centre consumes on its own.
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centre → hide → own
