Schneider demonstrates liquid cooling with elevated-temperature coolant can reduce datacenter water consumption by up to 50%.

A datacenter's cooling architecture has a decisive effect on its water and energy use, according to Schneider Electric's assessment of four modeled 100 MW datacenter designs. In a white paper titled "Water Usage at AI Scale: Insights from a 100 MW Comparative Analysis," the energy management specialist compares designs ranging from traditional air cooling to optimized liquid-cooling systems, concluding that moving from air to liquid cooling consistently improves energy efficiency and can reduce water consumption in constrained locations.

Schneider has a commercial interest in that conclusion. The firm acquired a 75 percent controlling stake in liquid-cooling specialist Motivair in 2024 and said it intended to buy the remainder by 2028.

The analysis models the four designs across the annual weather profiles of Paris and Dallas to assess the effect of location. The highest onsite water consumption occurs at a traditionally air-cooled facility in Dallas. Switching to liquid cooling with coolant supplied at 45°C (113°F) reduces water use by at least 50 percent.

Water consumption is determined largely by the equipment used to reject heat outside the data hall. For facilities of equivalent size, Schneider claims cooling towers can consume five to 20 times as much water as dry coolers. The firm's modeling examined four scenarios: traditional air cooling; liquid cooling at 32°C (about 90°F), representative of early AI datacenters; the same liquid-cooling equipment at a higher 45°C supply set point; and a fourth design that sizes the cooling system specifically for 45°C operation, reducing equipment count and capital expenditure.

Higher coolant temperatures produce "substantial additional water savings," the report states, because they extend the range of conditions in which cooler outside air can reject heat without mechanical chilling. Schneider recommends assessing water consumption early in the design process and considering alternative water sources to reduce demand on local supplies.

The issue is particularly urgent in the United States, where datacenters' water consumption has tripled in a decade and local opposition to new projects is growing. In the UK, the government has drawn scrutiny for overlooking water demand while promoting the construction of more AI server farms.

Schneider cautions that water and energy efficiency must be evaluated together. The optimal design will depend on the relative importance of power usage effectiveness (PUE) and water consumption, as well as local energy and water costs.