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Data centres can reduce cooling-water demand by measuring water and IT energy consistently, tuning airflow and chilled-water conditions, choosing cooling systems for local water and energy conditions, and assessing reclaimed water where it is suitable. The right approach depends on the site: a system that uses less water may require more electricity, while a closed-loop liquid-cooling circuit does not automatically mean the whole facility uses no water.

Start with a water baseline you can compare

Measure water use alongside IT energy

The U.S. Department of Energy’s Federal Energy Management Program (DOE FEMP) defines water usage effectiveness (WUE) as annual site water usage in liters divided by annual IT equipment energy use in kilowatt-hours. In formula form: WUE = annual site water use (L) ÷ annual IT equipment energy use (kWh). State the reporting period and exactly which site water uses are included; a WUE figure is only comparable when its measurement boundary is clear.

Keep the underlying water figures visible as well as the ratio. Water withdrawal describes water taken from a source; water consumption is the portion not returned to that source, for example because it evaporates. A site should make clear which it reports and avoid treating water supplied, water consumed, and WUE as interchangeable measures.

Set the boundary before claiming a reduction

Record the operator, facility or portfolio, location, dates, included water uses, and IT-energy basis. Note whether the figure covers only cooling or other facility uses too. Without that context, a lower ratio or a “zero water” claim can conceal a change in what is counted rather than a genuine reduction in the site’s water impact.

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Reduce avoidable cooling demand in existing facilities

Review airflow and operating conditions

Begin with airflow management, cooling setpoints, and chilled-water temperatures. DOE FEMP says that higher chilled-water temperatures and reduced airflow can reduce chiller energy use and, in turn, the heat that cooling towers must dissipate through evaporation. FEMP reports that these practices can result in 20% less energy consumption at the chiller, citing its Best Practices Guide for Energy-Efficient Data Center Design; the page connects the chiller reduction to lower cooling-tower water demand. This is a cited design-practice figure, not a guaranteed saving for every site.

Facilities engineers should assess changes against the actual operating conditions and reliability requirements of the data centre. The goal is to reduce unnecessary cooling load without compromising safe equipment operation. A chiller-energy improvement may also reduce evaporative heat rejection, but the resulting water change should be measured at the facility rather than assumed from the energy figure alone.

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Choose cooling technology for the site, not by a universal ranking

Compare candidate designs against local water availability and stress, seasonal climate, electricity supply, reliability needs, and whether the project is a retrofit or a new build. DOE’s data-centre design guide cautions that no single design is most energy-efficient in every scenario. There is likewise no basis here for a like-for-like ranking of water use across all real facilities.

Approach Water implications Energy and implementation considerations
Cooling towers and evaporative systems Evaporation can create substantial on-site water demand. Can be energy-efficient; performance depends on climate and operating conditions. Consider operational tuning before treating the system as categorically unsuitable.
Air-side or mechanical cooling Depending on the design, can reduce or eliminate direct cooling-water use. Electricity use may be higher than with evaporative approaches. Compare local energy impacts as well as water demand.
Direct-to-chip closed-loop liquid cooling Microsoft says its newer design recirculates coolant without water evaporation for cooling during normal operation. Requires compatible servers, racks, cold plates, coolant distribution, and facility heat-rejection design. The IT-side loop does not establish the water use of the whole facility.
Reclaimed or recycled water Can reduce dependence on freshwater where a suitable supply exists. Requires local availability, treatment, and compatibility with the cooling system; assess watershed and community context.

Account for the water–energy trade-off

Google says water cooling can reduce data-centre energy use by approximately 10% compared with air cooling in many places. That is Google’s location-dependent comparison, not a universal result or a guarantee for a particular facility. It illustrates why operators should assess water and energy together: reducing cooling-water demand can shift impact to electricity use, and the consequences depend on local conditions.

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Assess alternative water sources carefully

Reclaimed or recycled water may reduce reliance on freshwater, but it is not automatically available or suitable. Check the reliability and seasonal availability of local supply, water quality, treatment needs, cooling-system compatibility, and the implications for other local users. Google describes using alternatives to freshwater as part of its water stewardship approach, and Microsoft reports reclaimed and recycled water use in several regions. Those company examples do not establish availability or suitability at another site.

Make closed-loop claims match the system boundary

Microsoft says its newer direct-to-chip cooling design recirculates coolant and uses no water evaporation for cooling during normal operation. That statement describes the operational cooling loop; it does not establish that every data centre uses the design, that no water is used in other facility systems, or that the full lifecycle has no water impact.

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When evaluating liquid cooling, distinguish the recirculating IT-side circuit from the facility’s heat-rejection system. State whether a claim covers normal operation or other conditions, and whether it includes water used elsewhere on site. A loop can avoid routine evaporation while the facility still has water demand outside that loop.

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Use a practical decision sequence

  1. Establish the baseline. Record site water use and IT equipment energy over the same reporting period. Define which water uses are included in WUE and distinguish consumption from withdrawal in reporting.
  2. Find operational opportunities. Review airflow management, setpoints, and chilled-water temperatures with facilities engineers; assess changes against safe operation and reliability needs.
  3. Compare system options locally. Evaluate seasonal climate, water stress and supply, energy impacts, reliability requirements, and retrofit or build constraints. Do not assume one cooling design is best for every scenario.
  4. Test alternative-source feasibility. Confirm local reclaimed or recycled water availability, quality, treatment requirements, system compatibility, and community context before relying on it.
  5. Check the full cooling path. For liquid cooling, trace heat rejection beyond the IT-side loop and identify any water uses outside it before describing the design as water-free.
  6. Report results with context. Give the operator, location, period, metric definition, and system boundary. Label portfolio claims as company-reported results rather than predictions for another facility.

Interpret company figures as context, not guarantees

Microsoft reported a nearly 90% WUE improvement since its first-generation data centres in the early 2000s. This is a company-reported portfolio comparison, not a sector-wide result or a forecast for a new facility. As with any operator figure, its value for a site decision depends on the metric definition, reporting boundary, location, and period being compared.

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