Staying out of Hot Water with a Smart Water Strategy

Water has become an increasingly hot topic in the data centre world. While energy use grabs headlines, water usage is fast emerging as a key consideration for operators focused on sustainability and public perception.

Cooling strategies that once seemed simple are being scrutinised by regulators, communities and customers alike. And with larger facilities pushing the limits of traditional designs, it is time to take a closer look at how — and where — water not just fits in but becomes a strategic lever to optimise. 

Too much water, too much attention

Open-loop cooling towers have come under fire for how much water they use — and how visible that usage is. They pull in fresh water constantly and lose a lot of it through evaporation, which can raise red flags in areas where water is scarce.

Add in their big plumes and chemical treatment and they can quickly become a public concern and major roadblock for AI-enabled data centre development.

As a result, open-loop cooling towers are falling out of favour. Just as power usage can influence approvals, reputation and even site selection, the optics of water use can create friction with local stakeholders long before the first gallons are used.

In places like Arizona and parts of Europe, even the perception of excessive water use can trigger a backlash. In some European regions, open-loop systems are restricted and certain countries have mandated heat recovery by law.

Closed-loop systems are changing the game

But not all water-cooled chillers earn the public’s ire.

Today’s closed-loop systems keep water contained, circulating between chillers and dry coolers with no evaporation. The result? Strong thermal rejection without the “water hog” reputation.

Compared to air-cooled setups, water-cooled systems can be far more efficient — sometimes using 30% less power per ton of cooling. And as data centres  grow past 50 or 100 megawatts, that efficiency adds up fast.

From byproduct to opportunity

Here is another place where closed-loop water-cooled systems shine: they make it easier and more efficient to recover and reuse waste heat.

Many cities have a growing need for heat — whether to support buildings or district heating networks. Meanwhile, data centres produce a steady stream of it, much of which is still vented into the atmosphere.

That is starting to change. With smart planning and efficient system design, condenser water can be used to capture and redistribute waste heat, turning a byproduct into a valuable resource for surrounding communities.

One cooling solution doesn’t fit all

Every site and every region are different. Many considerations and regulations are driving thermal management system design. The right system for Phoenix might not be right for Paris.

Though a closed-loop water-cooled system offers many advantages, there is no universal “best” solution. Instead, the right thermal management system depends on climate, energy costs, water availability, load size and future growth plans. 

Air-cooled systems are often favoured for simplicity. Water-cooled setups bring better performance at scale. Hybrid approaches are gaining traction too — especially in high-density AI-driven data centres where direct-to-chip liquid cooling is in play. 

The key is a holistic approach — choosing a flexible system that can scale and adapt as your needs evolve.

This requires collaboration with innovative sustainability-minded partners that view thermal management with a wide lens and understand the importance of system integration and optimisation for mission critical environments. 

Ask the right questions early

As water strategy becomes more central, here is what you should be asking:

• Is the system truly closed loop, and how is water usage tracked?
• Can condenser water be reused or stored?
• Are you designing and sizing for today’s density — or tomorrows?
• Can your cooling choice affect your power procurement or grid impact?
• Are you accounting for future regulations or public scrutiny?

What water use says about who you are

Water is more than a utility — it impacts public perception as it reflects how a data centre operates, plans and connects with both its community and the environment.

As facilities grow and scrutiny intensifies, water strategy needs to be part of the conversation from the very beginning. 

Whether it is conserving water with a closed-loop system or putting waste heat to work in the community, smarter water use helps your data centre operate better, be more sustainable and can help build trust with your community stakeholders.

In the data centre industry today, how you use water is not just an operational decision. It is a marker of leadership.

Keegan Bragg is a Global Mission Critical Engineer for Trane, specialising in Centrifugal Water-Cooled Chillers. With over 10 years of experience supporting the data centre industry, he focuses on advancing innovative, high-performance cooling systems that meet the demands of the growing ecosystem. He holds a degree in mechanical engineering from the University of St. Thomas (MN).

Disclosure: This article is an advertorial, and monetary payment was received from Trane. It has passed Editorial’s assessment for being informative.

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