How Sustainable are Data Center Cooling Systems?

Exploring greener paths for cooling the digital world

1. Introduction

With the boom of AI, global demand for datacentres is projected to increase at an annual rate of 19-22% from 2023 to 2030. To avoid running out of supply, the industry needs to build twice as many data centres as it has since 2000, but in less than a quarter of the time. This exponential expansion raises a pressing question: can we scale without compromising sustainability?

2. Why Cooling Matters?

As we discussed in our previous blogs, overheating of data centres can severely impact data safety and lead to hardware damage, performance degradation, increased energy consumption, operational downtime, and reduced lifespan of components. However cooling of data centre could be a significant consumer of natural resources, which can significantly questions its sustainability.

Cooling methods vary by facility size, location, and workload density, but the most used ones are:

  • Air Cooling: The most common method, using fans and ambient air. Suitable for moderate climates and smaller facilities.
  • Evaporative Cooling (Cooling Towers): Uses water evaporation to reject heat. Efficient but water-intensive. This is the most widely used method in hyperscale data centers due to its cost-effectiveness and high thermal performance in large-scale deployments.
  • Adiabatic Cooling: Combines air and limited water for peak conditions, reducing water usage.
  • Liquid Cooling: Direct-to-chip or immersion cooling for high-density workloads. Improves energy efficiency, reduces secondary cooling needs.
  • Dry Coolers / Closed-Loop Systems: No evaporation, no water loss—ideal for sustainability-focused deployments.

3. Environmental Impact of Cooling Data Centers in a nutshell

Cooling-related water use is increasingly under scrutiny. For example, China Telecom’s hyperscale facility uses as much water annually as 6.6 million people would drink, and as much energy as 250,000 European households.

While cooling water is generally not returned to the environment in a polluted state, the main issue is evaporation: water extracted from local supplies enters the atmosphere, disrupting regional hydrological cycles.

On the energy side, data centers are projected to consume up to 1,000 TWh by 2026, driven in large part by AI and cloud computing. Many still rely on fossil-based grids, which undermines sustainability goals despite energy efficiency gains.

4. Sustainable Alternatives

Efforts are underway to decouple digital growth from environmental degradation. One of those is the Climate Neutral Data Centre Pact, part of the European Green Deal, where sector leaders are pushing the industry toward measurable sustainability targets. Innovative solutions are emerging:

To reduce water use:

  • Closed-loop dry coolers: eliminate evaporative losses
  • Greywater and recycled sources: minimize freshwater withdrawal
  • CO₂-based systems: no water discharge, no blowdown

To cut energy impact:

  • Renewable energy procurement (PPAs, VPPAs, on-site solar/wind)
  • Heat reuse for district heating and industrial processes
  • AI-based cooling optimization, workload shifting
  • Long-duration energy storage and grid-interactive design
  • Efficient chipsets and workload orchestration

5. Solution of Hydrocool

HYDROCOOL offers a breakthrough in sustainable cooling. With a circular design and minimal maintenance requirements, HYDROCOOL is an adaptable, forward-looking solution for data centers aiming to meet future ESG targets. Its CO₂-based refrigeration system is closed-loop, non-polluting, and free of environmentally damaging refrigerants like HFCs or CFCs. It operates with:

  • Zero water consumption
  • Up to 55% reduction in carbon emissions
  • Up to 95% operational cost savings
  • No lubricant use, improving lifecycle sustainability
  • High performance in hot or extreme climates
Figure 1. HydroCool system scheme (1) 4x Liquid piston compressor; (2) Heat rejector & Condensate tank; (3) 2x CO2 Expander (instead of expansion valve); (4) Recuperator; (5) Water suction tank & auxiliary water/LPF pump; (6) evaporator; (7) Chilled water pump

6. Wrapping up

Traditional data center cooling methods are environmentally costly, particularly in terms of water use and energy consumption. However, sustainable alternatives are available—and increasingly necessary.

Technologies like HYDROCOOL provide a glimpse into a future where performance and sustainability go hand in hand. By embracing innovative, low-impact cooling systems, the industry can meet growing digital demand without sacrificing environmental responsibility.