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How Data Centers Use Power, Water, and Cooling to Run Cloud Services

Data centers use electricity to run servers and remove the heat they produce. Their water and energy impacts depend on workloads, cooling systems, climate and power supply.

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Data centers run cloud services by using electricity to power servers and networking equipment, then removing the heat that equipment produces. Some cooling systems also consume water directly, while electricity generation and chip manufacturing add water use elsewhere. The scale and mix of these impacts vary with computing workload, facility design, local climate, water source, and electricity supply.

What a data center does

A data center brings together servers, storage, networking, and the infrastructure that keeps those systems operating reliably. Servers process workloads and store data; networking equipment moves data among systems and out to users. Power delivery, cooling, monitoring, and backup systems support that computing work.

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Facilities receive electricity from the grid and may use UPS batteries and backup generators to maintain service through outages. Those backup systems are part of reliability planning, although they are rarely used. Most electricity goes to running IT equipment and the infrastructure that supports it.

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Where data-center electricity goes

The International Energy Agency (IEA) estimates that servers use around 60% of electricity demand in modern data centers on average. Storage accounts for around 5%, and networking can account for up to 5%. Cooling ranges from around 7% in efficient hyperscale centers to more than 30% in less-efficient enterprise centers. These are IEA estimates, not fixed shares for every building; equipment and facility type change the balance. IEA: Energy and AI

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Global data-center electricity use was estimated at 415 terawatt-hours (TWh) in 2024. In its base case, the IEA projects around 945 TWh in 2030. That future figure is a scenario, not a guaranteed forecast. IEA: Energy and AI

In the United States, Lawrence Berkeley National Laboratory reported that data-center electricity use rose 14% from 2023 to 2024. Its central estimate puts data centers at 11.8% of total U.S. electricity use by 2030, with a range of 9.5% to 15.3%. These U.S.-specific projections are uncertain. The report attributes growth primarily to more accelerated servers being shipped each year and to their higher rated power. Greater computing efficiency does not necessarily cut total electricity use if demand for computation grows faster. U.S. Department of Energy: data-center electricity report summary

Why cloud computing needs cooling

Nearly all the electricity servers consume eventually becomes heat. Cooling systems remove that heat and regulate temperature and humidity so equipment can keep operating. A data center’s cooling system may combine air handling, chillers, heat exchangers, pumps, and controls; there is no single design used across all facilities.

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Cooling has two separate resource costs: electricity to move heat and, in some designs, water consumed through evaporation. A facility can reduce one without necessarily reducing the other, so claims about “efficient cooling” need to specify which resource and which system boundary they mean.

Air and evaporative approaches

Cooling arrangements vary by facility. Some rely heavily on air handling and chillers; others use evaporative processes that can consume water. Local climate affects how a design performs and how much water it needs. The IEA’s estimates show why it is misleading to treat one cooling method or one facility’s performance as representative of the whole sector.

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Liquid cooling

Liquid cooling moves heat from computing equipment using liquid-based systems rather than relying only on room air. The IEA’s 2026 publication estimates potential savings of around 8% in servers and 30–40% at the facility level, translating to overall savings in the order of 10–21%. These are potential estimates from the report, not guaranteed savings for a particular site. The IEA says adoption remains low because of a lack of standardization, high initial costs, and long-term reliability concerns. IEA: The Role of Liquid Cooling in Data Centres

Where data-center water use comes from

Water impacts can occur both inside and outside a data center. Direct use includes water consumed by cooling at the facility. Indirect use includes water associated with producing electricity and manufacturing semiconductors. A figure for on-site cooling alone therefore does not describe the full water footprint.

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The IEA distinguishes withdrawals, water taken from surface water or groundwater, from consumption, the portion not returned to its original source after use—for example, water lost through evaporation. These measures are not interchangeable. IEA: Energy and AI

The IEA estimates global data-center water consumption at around 560 billion litres per year currently and around 1,200 billion litres per year in its 2030 base case. For its estimate of 2023 consumption, about two-thirds was associated with primary energy supply and electricity generation, about one-quarter with direct cooling, and the remainder with chip manufacturing. These global figures are modelled estimates based on assumptions about cooling technology and water-use intensity. IEA: Energy and AI

To illustrate how direct and indirect use can combine, the IEA estimates that a modelled 100-megawatt U.S. hyperscale data center consumes around 2 million litres of water per day in total—an amount the agency equates to about 6,500 households—with over 60% of that use indirect. This is an estimate for a modelled facility, not a typical daily total for every data center. IEA: Energy and AI

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Water use depends on cooling technology, climate, and the water footprint of the electricity supply. Local pressures matter too: a facility’s water demand can compete with agricultural or municipal needs in some places, even when data centers account for a modest share of withdrawals nationally.

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How to compare facility claims fairly

A statement such as “this data center uses less water” is meaningful only if the numbers cover comparable activities, metrics, workloads, and time periods. When comparing facilities or sustainability reports, check:

  • Boundary: Does the figure cover on-site cooling only, or also water associated with electricity generation and chip manufacturing?
  • Metric: Is it reporting withdrawals or consumption? Is electricity use an annual total, a peak figure, or a modelled estimate?
  • Workload and scale: How much computing does the facility perform, and what share relies on power-intensive accelerated servers?
  • Cooling and climate: Is cooling air-based, evaporative, liquid-based, or a combination? What local temperature and water conditions shape its use?
  • Power supply: What electricity sources serve the site, and what water footprint is associated with that mix?
  • Efficiency and reliability: How efficient are the cooling and wider facility systems, and what backup equipment supports continuity?
  • Date and geography: When and where were the figures measured or modelled? A regional or year-specific estimate should not be presented as a universal value.

Workload mix, facility type, cooling design, climate, and electricity supply all affect resource use. Without matching boundaries and dates, a ranking between facilities can give a false impression of which one is more efficient.

What transparency and grid flexibility can mean

An EU policy document says a delegated regulation adopted in January 2025 established an EU-wide sustainability rating scheme requiring data centers above 500 kW to report key performance indicators, including energy use, water consumption, heat reuse, and refrigerant type. The document describes that framework; implementation details and applicable obligations should be checked against current EU rules. European Commission: Energy efficiency of data centres

Data centers can also support grid flexibility under suitable conditions. On-site batteries, flexible cooling, shifting workloads to another time, or relocating workloads can help adjust demand. These are possible capabilities, not guaranteed benefits at every facility or for the grid as a whole. European Commission: Energy efficiency of data centres

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