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The system works by using chip-level liquid cooling, which provides precise temperature control without relying on water evaporation.

As water challenges grow more extreme, we know we have more work to do.

Closed loop liquid cooling system

As our fleet expands over time, this shift will help reduce Microsofts fleetwide WUE even further."

New data centers in Phoenix, Arizona, and Mt.

Pleasant, Wisconsin, will serve as pilot sites for this technology in 2026.

Eliminating evaporative cooling does increase power usage effectiveness (PUE), as mechanical cooling requires more energy.

However, the use of high-efficiency economizing chillers and elevated cooling temperatures will offset some of this demand.