Microsoft, Vertiv, and Evolution are leading the way in adopting closed-loop and immersion cooling, saving millions of liters of water per site each year.
As data center power density increases, so does their environmental impact. Especially against the backdrop of climate change and rising global water demand, water consumption has become a key issue.
Traditional evaporative cooling systems can consume up to 1.5 million liters of water per day in hyperscale facilities, placing enormous pressure on regions already facing water scarcity and raising concerns about long-term sustainability.
To address this problem, companies including Microsoft, Evolution Data Centers, Vertiv, and Bridge Data Centers are turning to "zero-water cooling."
By using closed-loop systems, engineered fluids, and hybrid designs, these operators are replacing evaporative methods to cool equipment, conserving resources without sacrificing performance.
Microsoft Promotes Closed-Loop Cooling Systems Globally
In August 2024, Microsoft began deploying a closed-loop, chip-level liquid cooling system that completely eliminates reliance on evaporative water.
Once filled with coolant during construction, the system recirculates the liquid continuously, reducing water usage by more than 125 million liters per facility per year.
This new system marks a significant advancement in Microsoft’s sustainability goals. Between 2021 and 2024, its Water Usage Efficiency (WUE) has decreased from 0.49 liters per kilowatt-hour to 0.30 liters per kilowatt-hour.
Pilot sites in Phoenix (Arizona) and Mt. Pleasant, Wisconsin, are already using the system, and starting in August 2024, all new construction projects will adopt a zero-water design.
Effective cooling is critical because servers and other hardware generate significant heat, and exceeding temperature thresholds can lead to failures or even system downtime.
Steve Solomon, Vice President of Data Center Infrastructure Engineering at Microsoft, said:
"These new liquid cooling technologies are designed to circulate water within a closed-loop network. After initial deployment, the system can operate independently, dissipating heat efficiently without the need for additional water intake."
Microsoft reports an 80% improvement in Water Usage Efficiency (WUE) compared to older data centers and plans to roll out this system to its global infrastructure. This closed-loop model is also designed to maintain temperature stability at the chip level to meet the needs of high-density artificial intelligence computing.
Evolution Data Centers Designed for Arid Environments
Singapore-based Evolution Data Centers is adopting a similar strategy in Southeast Asia. Its data centers use air-cooled closed-loop systems specifically designed for high-temperature and high-humidity environments.
These systems do not rely on evaporative water or local infrastructure, making them suitable for emerging markets facing water shortages while accelerating digitalization. The company’s deployment methods are also tailored to urban growth areas, helping new data centers expand while complying with environmental and regulatory standards.
Immersion Cooling Becomes Increasingly Mature
Companies such as Iceotope and LiquidStack are leading the way in immersion cooling—a method that submerges servers in non-conductive liquids to directly remove heat.
These liquids either circulate passively or use a "two-phase cooling process": the liquid evaporates to absorb heat and then condenses for recirculation. The entire process requires no pumps, fans, or water.
This method can reduce cooling energy consumption by more than 90%, making it particularly suitable for artificial intelligence training environments with extremely high heat loads.
Peter Huang, Vice President of Global Data Center Thermal Management at Castrol, said: "Data center operators have realized the advantages of liquid cooling, but they need assurance in long-term liquid management."
"With decades of fluid service experience in the automotive industry, Castrol is bringing this mature technology to data centers, offering a full-lifecycle fluid service model to support optimal performance."
Immersion cooling also enables quieter, more compact construction and is increasingly being adopted in edge computing and the renovation of old facilities.
Vertiv and Bridge Data Centers Explore Hybrid Solutions
Vertiv, Bridge Data Centers, and Chindata Group are collaborating to develop a hybrid system called X-Cooling, which combines ambient air cooling and closed-loop technology to achieve zero water use.
In Hebei Province, China, deploying the X-Cooling system for every 100MW capacity is expected to save 1.2 million tons of water per year. Vertiv’s Liebert XDU is another hybrid model that circulates coolant internally, suitable for lighter air-cooled loads, and the collected heat can be used for municipal district heating systems.
This modular system helps operators transition from traditional old facilities to water-free environments without completely replacing infrastructure.
Remarkable Water-Saving Results
These technologies have delivered quantifiable water-saving outcomes:
Key Data:
- More than 125 million liters of water saved per data center per year
- Near-zero WUE is possible in new construction projects
- Improved Power Usage Efficiency (PUE), as higher operating temperatures allow for more efficient cooling units
- Reduced reliance on municipal water supply systems
- As Microsoft, Vertiv, Evolution Data Centers, Iceotope, and LiquidStack lead the way, the transition to "zero-water data centers" is completely transforming the design, cooling, and sustainability of hyperscale infrastructure.
-
Written by
CoolingThermal Engineering TeamCoolingThermal is an automation equipment manufacturer based in Kunshan, China, specializing in heat pipe and vapor chamber production equipment since 2017. Our engineering team designs, builds, and commissions complete production lines covering forming, degassing, welding, testing, and assembly processes. The technical content on this blog is written by the same team that develops the equipment — based on real production experience, not secondary research.
