Explainer

"Closed Loop" Doesn't Answer the Question

A data center can recirculate coolant in a closed internal loop while using very different methods outside that loop to reject heat—and those methods can have very different water impacts.

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What This Graphic Shows

The phrase "closed loop" describes how coolant can circulate repeatedly inside a data center, but it does not by itself tell you how the facility ultimately gets rid of the heat carried by that coolant.

One option is dry or air-based heat rejection, where heat is transferred to ambient air through heat exchangers or dry coolers. This can greatly reduce process-water requirements for cooling. Another option is evaporative heat rejection, such as a cooling tower. U.S. Department of Energy guidance explains that cooling towers remove heat primarily by evaporation and therefore require makeup water. They also discharge some water as blowdown to control dissolved minerals.

DOE has also documented high-performance computing systems that use a closed internal water loop connected to dry water coolers. The important distinction is therefore not simply whether the internal coolant loop is closed, but how heat is rejected outside that loop and what water, electricity, and other infrastructure that heat-rejection system requires.

Key Takeaway

"Closed loop" tells you how coolant circulates inside the facility. To understand water use, ask how the heat is ultimately rejected.

Verification Status:

Verified — Current

Last Verified:

September 14, 2026

Sources

Review the sources used to support this visual.

U.S. Department of Energy

Cooling Water Efficiency Opportunities for Federal Data Centers

January 9, 2019
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U.S. Department of Energy

Case Study: Evaluating Liquid v. Air Cooling in the Maui High Performance Computing Center

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