Nvidia’s new cooling system can significantly reduce water consumption in data centers, but it’s not a complete solution. The system measures only the water used inside the facility, ignoring the water used to generate electricity. In reality, data centers can only reduce their water footprint by about a quarter to a third by using this system. Nvidia’s solution is clever, using coolant to pump heat away from server racks, but it doesn’t address the larger issue of electricity generation. Why it matters: The water consumption challenge for data centers is still a significant issue, and companies need to consider the entire lifecycle of their operations when looking for sustainable solutions.