'A new approach': Microsoft CEO claims its "AI Superfactory" will use the
same amount of water each year as a neighborhood restaurant

Date:
Tue, 02 Jun 2026 23:05:00 +0000

Description:
As concerns rise over data centers, Microsoft CEO Satya Nadella looks to
allay fears.

FULL STORY ======================================================================Copy link Facebook X Whatsapp Reddit Pinterest Flipboard Threads Email Share this article 0 Join the conversation Follow us Add us as a preferred source on Google Newsletter Subscribe to our newsletter Microsoft CEO looks to ease
data center environmental fears A "new approach" will help the company's facilities address concerns, Nadella says Microsofts Azure cloud business now covers more than 500 data centers in 80 regions Microsoft CEO Satya Nadella has looked to reassure those concerned about the effect data centers are having on the environment.

Speaking during his keynote address at Microsoft Build 2026 , Nadella
outlined how the company is working on "a new approach" to its data centers, with plans to improve cooling systems and reduce water use In fact, Nadella even claimed the companys Fairwater 315-acre facility in Mount Pleasant, Wisconsin would only use around the same amount of water as a single restaurant over the course of an entire year, due to its new vertically designed, two-story AI data center architecture. Latest Videos From Watch
full video here: You may like Amazon, Microsoft, Google and more pressed on data center water and power use Microsofts $7 billion AI power grab is
driving a massive fossil fuel surge The data center debate rumbles on - here are the numbers behind People Over Profit "Hard work" ahead In his keynote, Nadella outlined how Microsofts Azure cloud business now covers more than 500 data centers in 80 regions, which he called, the most expansive hyperscaler footprint out there."

Microsoft has added more data center capacity in the last 18 months than in the first decade of Azure, Nadella noted - but with this expansion obviously comes rising concern over the environmental effects of these facilities.

Perhaps the most important design criteria for us is, 'How do we earn the permission from the communities in which we're making these data centers? Nadella said.

"How do we ensure that the DCs do not increase electricity prices, making
sure that we are replenishing all our water use, creating jobs in the local communities for the local residents, adding to the tax base, making sure
we're strengthening the communities by investing in local training and the nonprofits in the area. Are you a pro? Subscribe to our newsletter Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed! Contact me with news and offers from other Future brands Receive email from us on behalf of our trusted partners
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"Only when we live up to these principles, do the hard work around it, is
when we earn the permission to go ahead and innovate and build," he added. (Image credit: Microsoft) Opened in September 2025, Fairwater was mentioned specifically due to its new design, where instead of spreading compute only across a flat floor, racks can be placed in three dimensions, packing far
more GPUs densely while preserving fast network access, as the cluster
behaves as one massive singular AI machine, with low latency and high bandwidth between GPUs.

The facility also features improved cooling efficiency, as its its cooling loop is filled once and can operate with effectively zero ongoing water consumption.

Theres no doubt that data centers will be needed to help get the most out of AI technology and its use cases, but concerns are rising across the world about noise and light pollution, as well as the effect such buildings have on local utilities such as water and electricity.

On my way into Microsoft Build, our shuttle bus drove past protesters calling on Nadella and Microsoft President Brad Smith to address the problem, copying the famous Vietnam War protest chants against President Johnson to ask (slightly hyperbolically) how many kids did you kill today? Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds.



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