Research Note

Research Note: Cooling and Water Tradeoffs

The transcript discussed air, evaporative, liquid, immersion, reclaimed-water, and Microsoft examples. Public copy needs a common comparison boundary.

Aug 4, 20262 min readBy Dalton Anderson
In this article

Research Note: Cooling and Water Tradeoffs

Question

The transcript discussed air, evaporative, liquid, immersion, reclaimed-water, and Microsoft examples. Public copy needs a common comparison boundary.

What the sources establish

The DOE Federal Energy Management Program explains the heat path in tower-cooled facilities, defines site water-usage effectiveness, and describes controls, economizers, cycles of concentration, and direct liquid cooling. Direct liquid cooling moves heat from chips or racks into a recirculating loop, but the final heat-rejection system can still be evaporative, dry, or hybrid.

DOE's Best Practices Guide for Energy-Efficient Data Center Design distinguishes localized air-to-liquid exchangers, cold plates, and immersion. A current FEMP evaluation documents lower cooling energy and estimated operating-cost savings for one direct-water-cooled high-performance computing system. It is a case study, not a universal performance guarantee.

The EPA Quincy reuse case documents a municipal industrial-reuse arrangement serving data centers. It shows that a project can change the source and treatment path of its cooling water. It does not make water consumption immaterial or prove that reclaimed supply is available elsewhere.

Microsoft's Innovation Room describes a design introduced in August 2024 that uses chip-level cooling and no evaporative water for cooling. Project Natick was a separate underwater data-center experiment deployed off Scotland. The episode blended these examples. The public guide must distinguish them.

Disagreement and uncertainty

"Zero water for cooling" can describe on-site operational consumption within a stated design boundary. It does not automatically include water used in electricity generation, semiconductor manufacturing, construction, or the supply chain. A closed loop still contains coolant and needs a way to reject heat.

Dry cooling can reduce on-site water consumption but may require more fan or compressor energy and can lose performance in hot conditions. Evaporative cooling can reduce electricity use in suitable weather while consuming water. Direct-to-chip and immersion systems can improve heat transfer at high rack density, but their result depends on coolant distribution, residual air cooling, heat rejection, controls, climate, maintenance, and workload.

Editorial use

Compare systems by heat density, climate, water source, consumptive use, electricity, peak condition, reliability, maintenance, retrofit feasibility, and final heat rejection. Do not name a universal winner.

The public page should include an original heat-path diagram and a scenario table. It should ask for the cooling basis of design, annual and peak water quantities, source-water category, water-quality needs, site WUE, energy effect, operating modes, and measurement boundary.

Sources

Follow the evidence.

  1. apps.oregonlegislature.gov: HB3546apps.oregonlegislature.gov
  2. daltonanderson.ghost.io: ai data centers sustainable solutions for a growing crisisdaltonanderson.ghost.io
  3. datacenters.microsoft.com: innovation roomdatacenters.microsoft.com
  4. mn.gov: data centersmn.gov
  5. natick.research.microsoft.comnatick.research.microsoft.com
  6. open.spotify.com: 4gKJHJADKM5sAXceLTOYwSopen.spotify.com
  7. psc.ga.gov: page3psc.ga.gov
  8. psc.ga.gov: page2psc.ga.gov
  9. waterdata.usgs.gov: groundwater levels appwaterdata.usgs.gov
  10. aepohio.com: data center tariffaepohio.com
  11. daltonanderson.net: ai data centers sustainable solutions for a growing crisisdaltonanderson.net
  12. energy.gov: cooling water efficiency opportunities federal data centersenergy.gov
  13. energy.gov: liquid cooling v air cooling evaluation maui high performance computing centerenergy.gov
  14. energy.gov: data centers tribal economic development frequently asked questionsenergy.gov
  15. energy.gov: clean energy resources meet data center electricity demandenergy.gov
  16. energy.gov: powering americas ai future data center resource hubenergy.gov
  17. energy.gov: best practice guide data center design 0energy.gov
  18. epa.gov: clean air act resources data centersepa.gov
  19. epa.gov: water reuse action plan 20epa.gov
  20. epa.gov: water reuse case study quincy washingtonepa.gov
  21. fairfaxcounty.gov: board supervisors approve new data center zoning ordinance amendmentfairfaxcounty.gov
  22. fema.gov: national risk indexfema.gov
  23. ferc.gov: fact sheet improvements generator interconnection procedures and agreementsferc.gov
  24. iea.org: energy supply for aiiea.org
  25. iea.org: executive summaryiea.org
  26. mass.gov: downloadmass.gov
  27. mass.gov: community benefit plans and agreementsmass.gov
  28. mass.gov: healey driscoll administration statement of expectations for responsible data center development and operations in massachusettsmass.gov
  29. un.org: 143498un.org
  30. youtu.be: Sx4sj0ZeD4youtu.be

From this episode

Two useful next steps.

Research Note · 1 min

Research Note: E076 Policy Status and Publication Boundary

The August 2025 episode discussed state and local responses while several proposals were still moving. The revised article needs to preserve Dalton's solution-oriented vi

Research Note · 1 min

Research Note: Community Benefits Agreement Governance Boundary

The guide needs to help a host community turn a promise into an observable obligation while respecting jurisdiction, representation, and enforceability.

Return to the episode