Microsoft is rolling out next-generation data center designs that use zero water for cooling, marking a major step toward more sustainable cloud infrastructure as AI workloads grow. Beginning in August 2024, the company adopted chip-level, closed-loop liquid cooling systems that recycle water within the facility rather than evaporating it for heat removal. The approach can save more than 33 million gallons of water per data center each year, significantly reducing water stress on local communities. While the new systems may slightly increase energy use, Microsoft says efficiency gains and advanced thermal management help offset the impact. Pilot data centers in Phoenix, Arizona, and Mt. Pleasant, Wisconsin, are expected to come online in 2026, with broader deployment planned starting in 2027.
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