Microsoft Targets 40 Percent Data Center Water-Use Efficiency by 2030

Growing demand for digital infrastructure has increased attention on water use in data centers, with projections indicating substantial rises in consumption globally and in the United States.

Microsoft has stated that it aims to improve the water-use intensity of its owned data centers by 40 percent by 2030. This target builds on previous reductions, as the company reported an over 80 percent decrease in water-use intensity at its data centers from the early 2000s to 2023.

As part of its approach, Microsoft has implemented closed-loop, chip-level cooling systems in its Wisconsin and Georgia data centers. This technology removes the need for potable water in cooling processes at these locations, according to the company.

In addition to technology upgrades, Microsoft is investing more than $25 million in water and sewer infrastructure improvements near its Leesburg, Virginia data center. The company has also stated that it will replenish more water than it withdraws in the same water districts where its data centers operate.

What the numbers show

• Microsoft’s data centers reduced water-use intensity by over 80% from the early 2000s to 2023
• Closed-loop cooling systems can save more than 125 million liters of water per year per data center
• In fiscal year 2023, Microsoft contracted water replenishment projects estimated to provide over 25 million cubic meters of water benefit over their lifetimes
• Global AI-related water demand could reach between 4.2 and 6.6 billion cubic meters by 2027
• A Lawrence Berkeley National Laboratory report estimates U.S. data center water use could double or quadruple by 2028

Microsoft’s next-generation data center design, introduced in August 2024, uses chip-level cooling in a closed-loop system. The company states that each of these centers can save over 125 million liters of water annually compared to traditional cooling methods.

In fiscal year 2023, Microsoft contracted water replenishment projects with an estimated benefit of more than 25 million cubic meters of water over their operational lifetimes. These projects are part of the company’s broader efforts to address water sustainability in regions where its facilities are located.

Reports from the Lawrence Berkeley National Laboratory indicate that direct water consumption by U.S. data centers could increase substantially, with estimates suggesting a two- to four-fold rise by 2028 compared to 2023. On a global scale, the World Bank has projected that AI-related water demand could reach up to 6.6 billion cubic meters by 2027.

Microsoft’s stated commitments and investments reflect ongoing industry responses to the environmental impacts associated with expanding digital infrastructure. The company’s actions include both technological upgrades and funding for local water systems near its data centers.

* This article is based on publicly available information at the time of writing.