Microsoft has developed a new data center cooling system that eliminates the need for fresh water consumption, according to a report by Dina Bass for Bloomberg. The innovative “closed loop” design, launched in August 2024, will replace conventional cooling methods that typically use 125 million liters of water annually per facility. The company plans to implement this technology in new data centers in Phoenix and Mount Pleasant, Wisconsin, starting in 2026, as part of its effort to reduce environmental impact amid massive AI-driven expansion. The initiative comes as Microsoft’s data center investments exceeded $50 billion in the fiscal year ending June, with higher spending expected in the current year.