(Bloomberg) — Microsoft Corp., trying to mitigate the climate impact of its boom in data center construction, is starting to roll out a new design that uses no water to cool the facilities’ chips and servers.
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Launched in August, the new design will eliminate more than 125 million liters of water that each data center typically uses each year, the company said in a statement. The new system uses a “closed loop” to recycle water; Liquid is added during construction and circulates continuously, avoiding the need for new supplies.
Data centers will still need fresh water for worker facilities like bathrooms and kitchens.
Microsoft spent more than $50 billion on capital expenditures in the fiscal year ended June 30, with the vast majority tied to data center construction fueled by demand for artificial intelligence services. It plans to exceed that figure this year, which will require a rapid increase in the amounts of energy to run the networks and water to cool the equipment. Many of the newer facilities are built in hot, dry regions like Arizona and Texas, making finding ways to save water even more critical.
Microsoft’s existing data centers will continue to use a mix of older technologies, but new projects in Phoenix and Mount Pleasant, Wisconsin, will begin using waterless designs in 2026.
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