Cooling Deep Dive

Closed-loop vs open-loop cooling systems

Water use in data centers depends heavily on whether the cooling system reuses water or consumes water during heat rejection.

Closed-loop cooling

In a closed-loop system, water or coolant circulates through pipes and equipment repeatedly. The fluid absorbs heat inside the facility and carries it to equipment that rejects the heat.

Because the same fluid is reused, water consumption is usually much lower than systems that rely on evaporation.

Open-loop / evaporative cooling

In an open-loop or evaporative system, water is exposed to air and some of it evaporates as part of the cooling process. This can reduce electricity use for cooling, but it can increase water consumption.

These systems are not automatically bad, but they require careful local review.

Simple comparison

Water use

Closed-loop: generally lower ongoing consumption.

Open-loop: can consume more due to evaporation.

Power efficiency

Closed-loop: may use more mechanical cooling depending on design.

Open-loop: can be more electrically efficient in some climates.

Best use case

Closed-loop: water-sensitive areas or predictable low-water designs.

Open-loop: areas where water availability and policy support it.

What municipalities should require

A good ordinance should not ban or approve data centers blindly. It should require clear disclosure of cooling type, expected annual water use, peak-day water use, source of water, backup water plans, and whether reclaimed water can be used.