Our 25th post in the continuing series on the data center industry in Frederick County, Maryland revisits the precious commodity of water.
Over the past several months, I’ve written two articles examining one of the most common questions surrounding the Quantum Frederick campus:
How much water do data centers really use?
Those articles explained how modern data centers are cooled, how water is used in various cooling systems, and what is currently known about the proposed development in Adamstown.
Since then, one of our readers sent me a fascinating article. One of the world’s largest data center operators—Microsoft—has released perhaps the most detailed public explanation to date of how the next generation of AI data centers is dramatically reducing water consumption. The announcement reinforces an important point that is often overlooked in the public debate:
The technology is evolving rapidly.
When discussing a campus that may take 15 to 20 years to fully build out, we should not assume that tomorrow’s data centers will operate using yesterday’s technology.
From Evaporative Cooling to Closed-Loop Cooling
Historically, many large data centers relied on evaporative cooling systems. These systems remove heat very effectively, but they require a continuous supply of water because a portion of that water evaporates during the cooling process.
Microsoft’s newest AI data centers are taking a different approach.
The company has developed a closed-loop liquid cooling system that circulates coolant continuously through the facility. Rather than continually consuming fresh water during normal operations, the cooling loop is filled initially and then recirculates the liquid through the system.
The result is a dramatic reduction in water consumption while maintaining the cooling performance required for today’s high-density AI servers. According to Microsoft, these systems are designed to operate with virtually no water consumption for cooling during normal operations.
Watch Microsoft’s YouTube video here.
The Numbers Are Remarkable
Microsoft’s announcement included several statistics that illustrate just how quickly cooling technology is advancing.
According to the company:
- Water-use intensity has improved by nearly 90% compared with Microsoft’s earliest-generation data centers.
- Water-use effectiveness has been reduced from approximately 2.3 liters per kilowatt-hour to 0.27 liters per kilowatt-hour.
- Since 2022, Microsoft has reduced water-use intensity across its owned data center fleet by approximately 25%, with a goal of reaching a 40% improvement by 2030.
These are significant engineering advances that simply did not exist when many of today’s older data centers were built.
Why This Matters to Frederick County
One of the recurring themes in the public discussion surrounding Quantum Frederick has been the assumption that every future data center will use large quantities of water throughout its life.
That assumption deserves a second look.
The Quantum Frederick campus is expected to be developed over many years—not all at once. Buildings completed a decade from now could incorporate cooling technologies that are significantly different from those being installed today.
No one can say with certainty which operators will ultimately build on every parcel or what specific cooling technologies they will choose. However, Microsoft’s announcement demonstrates that the industry is investing billions of dollars in reducing both water consumption and environmental impacts.
In other words, the technology is moving in the same direction that many residents have been asking for.
Innovation Is Changing the Conversation
The debate over data centers should absolutely include water usage. Communities have every right to ask thoughtful questions about how natural resources will be managed.
But the conversation should also recognize that technology is not standing still.
Today’s AI servers are vastly more powerful than those of just a few years ago. Likewise, tomorrow’s cooling systems will almost certainly be more efficient than today’s.
As communities like Frederick County evaluate long-term projects such as Quantum Frederick, it is important to base those discussions not only on current technology, but also on the direction in which the industry is headed.
The story is no longer simply “How much water do data centers use?”
A better question may be:
“How quickly is the data center industry reducing the amount of water it needs?”
If Microsoft’s latest innovations are any indication, the answer is: faster than many people realize.
Become a MacRo InsiderRocky Mackintosh, Broker of MacRo, LTD has been advising regional landowners, investors, and institutions for over 50 years. He has been an active member of the Frederick community for over five decades and has served on a number of community organization boards, including as a member of the Frederick County Charter Board from 2010 to 2012. He has firsthand experience supporting nationally recognized hyperscalers with site search and selection services throughout the Mid-Atlantic.