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Topic · Efficiency

Efficiency & industry action

While total demand rises, energy per AI task is dropping dramatically — and hyperscalers are scaling new cooling, water stewardship, and clean power.

03 — Efficiency

AI energy efficiency: rapid progress

While total demand is rising, the energy required per AI task continues to drop dramatically thanks to better models, hardware, and software optimization.

0.24
Wh per query

Energy for a typical text query (e.g. Gemini) — roughly 9 seconds of TV watching.

Source · Google Environmental Report, 2024
30×
hardware gains

Performance-per-watt improvement across recent generations of AI accelerators (e.g. Google TPU).

Source · Google Cloud / MLPerf
33×
lower in 1 year

Drop in median prompt energy reported by Google over a single year of model and serving optimization.

Source · Google, 2024
Figure

Energy per AI query vs. everyday tasks

Source: Google Environmental Report, 2024. Typical estimates.
Figure

Hardware efficiency gains: AI accelerator generations

Performance-per-watt improvement relative to TPU v2 baseline. Source: Google Cloud / MLPerf.
Key takeaway

Energy per AI task is falling faster than overall demand is rising in many workloads — efficiency is doing real work alongside new capacity.

03b — Industry Action

What Tech Companies Are Doing

Major tech and AI companies are actively developing and deploying new technologies to reduce the water and energy demands of their data centers.

Microsoft

Zero-Water Cooling

In 2024, Microsoft introduced a new data center design using closed-loop, direct-to-chip cooling that consumes zero water for evaporative cooling. New facilities in Arizona and Wisconsin will pilot this approach starting in 2026.[1][2]

Google

Climate-Conscious Cooling

Google uses a science-based approach to choose between air cooling and water cooling depending on local conditions. The company aims to replenish more freshwater than it consumes by 2030 and has supported over 100 water stewardship projects across 68 watersheds.[1][2]

Meta

Water Restoration

Meta has supported more than 40 water restoration projects since 2017. In 2024, these projects returned over 1.59 billion gallons of water to stressed watersheds. Some newer data centers use extremely low amounts of water.[1][2]

Amazon (AWS)

Reclaimed Water

AWS has improved its Water Usage Effectiveness by 40% since 2021. The company uses reclaimed wastewater at many sites and is working toward being water positive by 2030. They have also launched initiatives to use AI to help solve broader water challenges.[1][2]

xAI

Wastewater Cooling

xAI's Colossus supercomputer in Memphis uses treated wastewater instead of drinking water for cooling, avoiding the use of millions of gallons of municipal potable water per day.[1][2]

Energy Efficiency Improvements

  • Companies are rapidly adopting direct-to-chip and immersion cooling, which are far more energy-efficient than traditional air cooling.[1]
  • Newer AI chips and optimized software are delivering significantly better performance per watt.[1][2]
  • Hyperscalers are investing heavily in renewable energy and exploring nuclear power deals to meet growing demand sustainably.[1][2]
  • AI itself is being used to optimize cooling systems and workload scheduling, often reducing energy use by 10–40% in some facilities.[1]
Key takeaway

The industry is moving fast to develop more efficient cooling technologies and better water stewardship practices — even as AI infrastructure continues to expand rapidly.

FAQ

Frequently asked questions

Sourced answers grounded in the figures cited on this page.

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