NVIDIA proposes water-free chip cooling for AI data centers using warm liquid loops

NVIDIA has unveiled a liquid-cooling design for AI data centers that it claims can eliminate virtually all on-site water consumption used for chip cooling. The system circulates warm coolant in a sealed loop directly against chips, rejecting heat to outside air via radiators rather than relying on water-evaporating methods. NVIDIA says the approach could also reduce energy use by allowing power-hungry chillers to be turned off for much of the year in suitable climates. Critics, including reports from TechCrunch and Fortune, note that the design only addresses water used inside the facility and does not account for water consumed by power plants generating the electricity that runs these data centers. The announcement, published on NVIDIA's blog on June 25, 2026, comes as AI's environmental footprint faces growing scrutiny from regulators and local communities.