Nvidia says its new AI server cooling approach can sharply reduce or nearly eliminate water used inside data centers for chip cooling. In an update described on its blog and covered by outlets, Nvidia replaces traditional evaporative cooling—often associated with millions of gallons of water per facility per year in some estimates—with a sealed warm-liquid loop. Nvidia’s system circulates coolant through cooling plates that sit atop chips, allowing coolant temperatures to rise and then be cooled back outdoors using dry coolers that transfer heat like radiator coils. Nvidia claims the higher operating temperatures can enable the system to function with minimal need for evaporation across much of the year and, in many climates, cut on-site water consumption for cooling to near zero.

Other reporting emphasizes that the broader “water problem” for AI data centers is not limited to on-site cooling. Electricity generation still often involves water use at power plants, meaning reductions inside a data center may not remove water impacts tied to powering the facility. Coverage also notes that even if cooling water drops, data centers still require substantial electricity and must plan for peak power and water demand. Overall, the technology is presented as a potentially meaningful, but limited, component of how the AI industry manages water and energy footprints.