Windows Central Insider
Gigantic "Big Tech" corporations across the world, such as Amazon, Google, and Microsoft, are investing billions of dollars into artificial intelligence, building sophisticated infrastructure and data centers to support the development of advanced models.
However, the construction of these data centers has been received with mixed feelings. On one hand, it will create job opportunities, improve infrastructure, increase tax revenues, and provide better internet connectivity for the community.
But more concerningly, its setbacks are alarming, including increased pollution, gentrification, higher electricity bills, and decreased access to water. Microsoft CEO Satya Nadella addressed some of these concerns during his keynote at the company's just-concluded annual developer-centric event, Build 2026 (via Business Insider).
As part of Microsoft's broader plan to go carbon-negative by 2030 and remove more carbon dioxide from our atmosphere than it produces, the software giant also promised to replenish more water than it uses. But a separate report suggested that Microsoft is internally projecting its water requirements could double by 2030 as it continues to navigate the ever-elusive and evolving artificial intelligence landscape.
How do we ensure that the DCs do not increase electricity prices, making sure that we are replenishing all our water use, creating jobs in the local communities for the local residents, adding to the tax base, making sure we're strengthening the communities by investing in local training and the nonprofits in the area?
Satya Nadella, Microsoft CEO
For context, Microsoft's Azure cloud business features approximately 500 data centers across 80 regions, which CEO Satya Nadella described as the "most expansive hyperscaler footprint out there." As Microsoft transitions from Bill Gates' software factory vision to double down on AI, the executive admitted that the company has expanded its data center capacity in the past 18 months more than in the first decade of Azure.
"Only when we live up to these principles, do the hard work around it, is when we earn the permission to go ahead and innovate and build," Nadella said.
Data centers generally require a gigantic amount of water for cooling, which has raised concerns among communities where these companies want to set up base for these facilities. Interestingly, Satya Nadella revealed that the company uses a liquid loop in its data centers, which is filled once. This means that, in theory, these facilities can now operate with much lower water consumption.
In fact, the daily water usage over the course of an entire year is roughly equivalent to what a single restaurant would use.
Satya Nadella, Microsoft CEO
Microsoft has been exploring full immersion cooling from as early as 2023, which is designed to ensure servers run smoothly without worrying that the chips could overheat.
Water isn't the only major concern around the development of these facilities in the community. In 2024, a damnin report suggested that Microsoft and Google's electricity consumption surpasses the power usage of over 100 countries.
In May, Microsoft's $1 billion data center in my home country, Kenya, was placed on hold after the government failed to commit to paying for the annual capacity Microsoft had requested to run Azure in the region. President William Ruto indicated that the project's power requirements would need to "switch off half the country" to keep the facility running.
Earlier this year, Microsoft President Brad Smith highlighted the company's efforts to build "Community-First" AI infrastructure, which addresses some of the issues raised by communities themselves, including reducing its water consumption and promising not to increase electricity bills. Whether these efforts will translate to a renewed perspective on data centers among regular people remains to be seen.
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