Elon Musk has endorsed NVIDIA's assertion that data center water consumption is significantly lower than critics claim. NVIDIA, citing a Manhattan Institute estimate, states that U.S. data centers use only 0.2% of daily freshwater, mainly indirectly via power generation. The company highlights its 45°C liquid cooling systems, which can reduce facility cooling water from 2.6 million gallons per megawatt annually to near zero by using dry coolers in cool climates. Musk, who operates large NVIDIA-powered clusters through xAI, praised the technology, reinforcing NVIDIA's stance that AI growth does not strain local water supplies. However, caution is advised: the near-zero claim pertains only to direct cooling, which is a smaller portion of total water use. A Berkeley Lab report noted that U.S. data centers directly used 17.4 billion gallons in 2023, with indirect use at 211 billion gallons, projected to rise significantly by 2028. Dry coolers also depend on climate, performing poorly in hot regions. Musk's own xAI facility in Memphis consumes about 1.3 million gallons of drinking water daily, sparking legal and community concerns. The balance between efficiency gains and industry expansion remains a key regulatory challenge.

Key facts

• NVIDIA claims data centers use 0.2% of U.S. freshwater, mostly indirectly.
• 45°C liquid cooling can cut facility cooling water to near zero.
• Elon Musk endorses NVIDIA's technology via xAI clusters.
• Direct water use by U.S. data centers was 17.4 billion gallons in 2023.
• xAI's Memphis site draws 1.3 million gallons of drinking water daily.