
In a response to growing industry pressure, several tech companies — including Microsoft, Amazon Web Services (AWS), and Meta — have reported progress in reducing water usage at their AI data centers. They are implementing closed-loop cooling systems that minimize net water loss. While Nvidia previously claimed it could almost eliminate water consumption at some facilities with its DSX system for designing and managing AI infrastructure, the industry still faces challenges: upgrading older data centers to less water-intensive technology is expensive, and there’s a lack of industry-wide consistency in how companies report their ESG efforts.