Data centres, the vast warehouses housing the computer servers that power the internet and artificial intelligence, are facing mounting public anger in the United States over their heavy reliance on water and electricity. As these facilities become increasingly vital to modern technology, the cooling required to manage the heat generated by computer chips—which can reach temperatures exceeding 80°C (176°F)—has emerged as a significant environmental challenge.
According to figures from the consultancy Rystad Energy, global data centres consumed 222 billion litres (59 billion gallons) of water for cooling in 2025. Without the implementation of new measures to reduce this consumption, Rystad estimates that the figure could nearly triple to 644 billion litres by 2030. However, the firm suggests that proactive steps to curb water use could keep the total increase below 100%.
In a report published in June, US chipmaker Nvidia introduced its newest system for designing and managing AI data centres, known as DSX, claiming it could almost eliminate water consumption at some facilities. The system utilizes closed-loop cooling, where liquid flows directly through servers and as close as possible to the chips.
To avoid the energy-intensive requirement of pumping in cooled air year-round, Nvidia’s system allows the liquid to enter servers at 45°C. This is notably warmer than the 32°C baseline observed in most other closed-loop systems during 2024, according to the Uptime Institute, which certifies data centres.
Josh Parker, Nvidia’s head of sustainability, explained that starting with warmer water often allows the company to rely on simple fans for air circulation, though he noted that a mix of methods, including chilled air or evaporative cooling, may still be required in extremely hot climates or during heatwaves. However, experts caution that there is a delicate balance involved.
Andy Masley, an independent researcher covering AI and data centres, noted that there is a direct trade-off between water use and energy use; reducing water consumption often requires more electricity because the liquid circulating through sealed pipes must still be cooled, frequently by blowing air over it.
Other major industry players, including Microsoft, Amazon Web Services (AWS), and Meta, confirmed to AFP that they also utilize closed-loop cooling systems, which they claim do not result in any net water loss. Despite these measures, Microsoft and AWS, two of the world’s largest cloud-computing companies, reported higher overall water usage between 2022 and 2025 as their operations expanded.
Comparisons remain difficult due to the lack of an industry-wide standard for reporting environmental, social, and governance (ESG) efforts. Furthermore, Elon Musk’s SpaceX, which became a major data-centre operator after acquiring his artificial intelligence company xAI, has never published an ESG report and received the lowest ESG score from ratings agency MSCI in June.
Shaolei Ren, an engineering professor at the University of California, Riverside, suggested that because water is generally much cheaper than electricity, companies have less incentive to cut water use on cost grounds alone. He noted that current incentives are driven more by public relations as opposition to data centres grows across the United States.
While upgrading older facilities with newer, water-efficient technology presents a cost challenge, Minh K. Le, who leads research on data centres and hydrogen at Rystad Energy, noted that older facilities are generally smaller and less powerful, meaning they require less cooling in the first place.
Finally, the direct water consumption of data centres is only part of the footprint, as water is also required to generate the electricity that powers them and to manufacture their chips and servers. In the United States, this indirect water use can be twice as high as the amount consumed by the data centres themselves.
Those computers generate heat, and keeping them cool can require large amounts of water.
