New cooling systems in data centers, such as closed-loop liquid cooling and immersion cooling, significantly reduce direct on-site water consumption. However, these technologies increase electricity demand by 6 to 35 percent, shifting water consumption upstream to thermal power plants. In the United States, data centers directly consumed 17.5 billion gallons of water in 2023, but indirect consumption linked to electricity generation is twelve times higher. AI servers can now exceed 100 kilowatts per rack, compared to 6 to 10 kilowatts previously. AWS reports a water usage effectiveness of 0.12 liters per kilowatt-hour, while Microsoft targets 0.27 liters per kilowatt-hour by 2025.
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