Elon Musk has endorsed NVIDIA's "water" strategy: a new perspective on AI ecology
Large technology corporations are increasingly coming under fire for their colossal consumption of natural resources, primarily electricity and fresh water. However, NVIDIA has decisively refuted accusations of wasteful water usage. The company's management claims that modern closed-loop liquid cooling systems have virtually eliminated the evaporation characteristic of previous-generation infrastructure.
Entrepreneur Elon Musk, whose company xAI actively uses clusters based on NVIDIA solutions, fully agreed with the chip manufacturer's arguments. Musk's public support significantly strengthens the partners' position, especially amid growing public pressure.
Real Water Consumption Figures
In its blog, NVIDIA cites data from the Manhattan Institute for March 2026: according to analysts' estimates, data centers consume approximately 0.2% of all fresh water in the United States, with the lion's share of this volume indirectly going toward electricity generation. Modern liquid cooling operates at a stable temperature of 45 degrees, allowing AI complexes in northern latitudes to fully transition to economical dry radiators, abandoning bulky evaporative cooling towers.
As early as 2025, NVIDIA stated that Blackwell systems are 300 times more water-efficient than traditional air cooling. Given that maintaining optimal temperature consumes up to 40% of a data center's total energy, the innovative approach is radically changing the rules of global competition in the artificial intelligence market.
Hidden Risks and Limitations
However, loud claims about zero water consumption only cover the direct cooling loop. Indirect costs are rapidly rising amid the large-scale deployment of neural networks. Analysts at the Berkeley Lab predict that direct water consumption will jump to 38-73 billion gallons by 2028. The efficiency of dry radiators is directly tied to climate: in cool states, they demonstrate excellent results, but in arid desert zones, their performance drops.
The startup xAI is also feeling environmental pressure. The giant Memphis Colossus computing complex drew up to 1.3 million gallons of clean drinking water daily from underground sources. Additionally, the company launched dozens of gas turbines before obtaining official permits, sparking a wave of outrage among local residents and leading to high-profile lawsuits.
Expert opinion: Musk's support is a powerful signal to the market, but it does not eliminate fundamental problems. The further development of the industry will entirely depend on the stringency of environmental controls by authorities. Investors should closely monitor regulatory changes in regions hosting large data centers.