Elon Musk has endorsed NVIDIA's environmental manifesto: a new perspective on water consumption by AI data centers.
Technology giants are increasingly coming under fire for their massive consumption of natural resources. The public is most concerned about electricity and freshwater usage. However, NVIDIA firmly rejects these accusations, and unexpectedly, Elon Musk himself has joined its defense.
In its new environmental manifesto, NVIDIA claims that modern liquid cooling systems have virtually eliminated water evaporation, which was characteristic of previous-generation infrastructure. Entrepreneur Elon Musk, whose company xAI actively uses clusters based on NVIDIA solutions, has publicly supported this thesis. This is a landmark moment: one of the most influential voices in the industry is staking its reputation on defending this new approach.
Real Numbers: How Much Water Do Data Centers Consume?
In its blog, NVIDIA cites data from the Manhattan Institute for March 2026. According to their estimates, data centers consume only about 0.2% of all freshwater in the United States, with the lion's share of this volume indirectly going toward generating the electricity needed to power them. Direct server cooling is a drop in the bucket.
Modern liquid cooling operates at a stable temperature of 45 degrees Celsius. This allows AI complexes in northern latitudes to fully transition to economical dry coolers, abandoning bulky evaporative towers. As early as 2025, NVIDIA stated that Blackwell systems are 300 times more water-efficient than traditional air cooling.
Since maintaining optimal temperature consumes up to 40% of a data center's total energy, this innovative approach drastically reduces not only the water footprint but also financial costs. This is changing the rules of global competition in the artificial intelligence market.
Limitations and Hidden Risks
However, optimistic national reports often mask real regional problems. Loud claims of "zero consumption" only address the direct cooling loop. Indirect costs—such as cooling for power plants—remain enormous.
Analysts at Berkeley Lab predict that direct water consumption by data centers will surge to 38-73 billion gallons by 2028. Furthermore, the efficiency of dry coolers is directly tied to climate: they work excellently in cooler states, but their performance drops in arid desert regions.
The startup xAI is also feeling environmental pressure. The massive Memphis Colossus computing complex was drawing up to 1.3 million gallons of clean drinking water daily from underground sources. Moreover, the company launched dozens of gas turbines before obtaining official permits, sparking outrage among local residents and leading to high-profile lawsuits.
My analysis. Musk's support for NVIDIA's environmental manifesto is a powerful PR move that shifts the focus from direct water consumption to indirect consumption. However, the reality is that regional problems, especially in arid zones, remain unresolved. The future development of the industry will depend entirely on the strictness of environmental oversight by authorities, not just on engineering innovations.