The Green Cloud: How OVHcloud’s Water-Cooling Technology Saves Energy and Costs

The internet feels invisible. We upload files to “the cloud,” stream movies from nowhere, and process millions of transactions in seconds. But the physical reality of the internet is heavy, hot, and incredibly energy-intensive. Behind every swipe, click, and search lies a sprawling network of data centers consuming vast amounts of electricity.

As digital transformation accelerates, so does the energy demand of the infrastructure supporting it. This presents a critical challenge for businesses: how do you scale your digital operations without blowing out your budget or your carbon footprint? The answer lies in rethinking the very foundation of how servers are maintained.

Sustainability in cloud computing is no longer a “nice-to-have” or a marketing buzzword; it is an operational necessity. With rising energy costs and increasing pressure from consumers and regulators to adopt Environmental, Social, and Governance (ESG) standards, companies are looking for smarter ways to host their data. This is where innovation in cooling technology changes the game. By moving away from inefficient air-based cooling and embracing liquid solutions, providers like OVHcloud are proving that high performance and environmental responsibility can go hand in hand.

What Is Green Cloud Computing?

Green cloud computing refers to the design, manufacturing, and use of servers, storage, and networking systems in a way that minimizes environmental impact. While traditional data centers focus primarily on uptime and speed—often at the expense of efficiency—eco friendly cloud hosting prioritizes energy conservation and resource management alongside performance.

The environmental impact of data centers is staggering. Globally, they account for approximately 1% of all electricity demand, a figure expected to rise as artificial intelligence and big data workloads grow. This consumption isn’t just about running the processors; a massive portion of that energy is used simply to keep the equipment from melting.

By adopting green cloud computing strategies, businesses can significantly reduce their digital carbon footprint. This involves optimizing hardware efficiency, utilizing renewable energy sources, and, crucially, revolutionizing how heat is managed within the facility.

Why Data Center Cooling Is the Biggest Energy Drain

To understand the value of water cooling, we must first look at the inefficiency of the status quo. In a typical data center, a significant percentage of electricity doesn’t go toward computing power at all. Instead, it is consumed by the cooling infrastructure required to keep servers within a safe operating temperature range.

This efficiency is often measured by a metric called Power Usage Effectiveness (PUE). PUE is the ratio of the total amount of energy used by a data center facility to the energy delivered to the computing equipment. A perfect PUE score is 1.0. However, many traditional data centers hover around 1.5 or higher, meaning for every watt of electricity used to run a server, another half-watt is wasted on cooling and lighting.

Traditional air cooling is notoriously inefficient. It typically involves massive air conditioning units (CRACs) blasting chilled air into “cold aisles” of server racks. Air is a poor conductor of heat, meaning you need a lot of it to make a difference. Furthermore, fans inside the servers must spin furiously to pull this cold air over the hot components, consuming even more power. This method of data center cooling energy consumption is a major financial leak for businesses, especially as hardware density increases. To reduce data center energy costs, the industry needs a medium that captures heat better than air.

How OVHcloud’s Water-Cooling Technology Works

OVHcloud has pioneered a different approach. Recognizing the limitations of air cooling early on, they developed a proprietary industrial water-cooling system that eliminates the need for energy-hungry air conditioning.

The concept relies on basic physics: water is a far more efficient thermal conductor than air. It can carry away heat up to 3,000 times more effectively. OVHcloud water cooling technology leverages this property through direct liquid cooling.

Here is how the system operates:

• Direct-to-Chip Cooling: Instead of cooling the entire room, liquid is pumped through copper blocks attached directly to the hottest components of the server (the CPU and GPU). This captures heat right at the source.
• Closed-Loop System: The heated liquid is circulated away from the server and out of the rack to a heat exchanger. It is a closed loop, meaning water is not continuously consumed or wasted; it is simply the vehicle for moving heat.
• Passive Heat Exchange: Once the warm liquid reaches the external heat exchangers, the heat is dissipated into the outside air naturally.

This innovation allows liquid cooling data centers to run without high-powered air conditioning (AC) in the server rooms. By removing the need for AC and server fans, the energy required to cool the infrastructure drops dramatically.

Energy Savings and Cost Benefits for Businesses

The primary driver for many organizations switching to green cloud solutions is the bottom line. Energy efficient cloud hosting translates directly to operational savings. Because OVHcloud’s water-cooled servers do not require the massive electricity overhead of traditional air conditioning, the cost to run the infrastructure is lower.

When a cloud provider spends less on electricity, those savings can be passed down to the customer. This is particularly relevant in today’s economic climate, where energy volatility can cause unpredictable spikes in IT budgets.

By choosing a provider that utilizes water cooling, businesses can:

• Reduce Cloud Energy Costs: Lower PUE means you are paying for compute power, not air conditioning.
• Maximize Density: Water cooling allows more powerful servers to be packed into smaller spaces without overheating. This density efficiency lowers real estate and maintenance costs, further reducing the total cost of ownership.
• Avoid CapEx on Cooling: For businesses managing their own on-premise servers, switching to a water-cooled cloud provider eliminates the need to invest in expensive on-site cooling infrastructure.

Performance and Reliability Advantages

There is a common misconception that “green” technology implies a compromise in power. In the world of high performance cloud hosting, the opposite is true. Water cooling unlocks performance levels that air cooling simply cannot support.

Modern processors, especially those used for AI and machine learning, generate immense heat. When an air-cooled server gets too hot, it engages in “thermal throttling”—automatically slowing down its processing speed to prevent damage. This results in inconsistent performance and lag.

OVHcloud’s liquid cooling maintains a stable operating temperature for the CPU and GPU, even under heavy loads. This ensures:

• Consistent Clock Speeds: Servers can run at maximum capacity for longer periods without throttling.
• Hardware Longevity: Stable temperatures reduce thermal stress on components, leading to fewer hardware failures and greater reliability.
• Server Cooling Efficiency: As chip manufacturers push the limits of power density, liquid cooling is becoming the only viable way to cool next-generation hardware.

Environmental Impact and Sustainability Metrics

For the environmentally conscious enterprise, the shift to water cooling offers measurable wins in sustainability. The most significant impact is the reduction of the carbon footprint associated with IT operations.

Sustainable cloud infrastructure is evaluated not just on PUE, but also on Water Usage Effectiveness (WUE) and Carbon Usage Effectiveness (CUE).

• Carbon Footprint Reduction: By removing air conditioning, OVHcloud achieves a PUE as low as 1.09 in some data centers, compared to the industry average of 1.57. This massive reduction in electricity usage directly lowers the carbon emissions associated with power generation.
• Water Conservation: Unlike “evaporative” cooling towers used by some competitors—which consume millions of gallons of water annually by evaporating it into the atmosphere—OVHcloud’s closed-loop system retains the water. It is highly efficient and minimizes water waste.
• ESG Alignment: For companies reporting on ESG goals, migrating to low carbon cloud hosting provides concrete data points to demonstrate commitment to sustainability.

OVHcloud vs Traditional Data Centers

To visualize the difference, it helps to compare the operational models side-by-side.

By choosing energy efficient data centers that utilize liquid cooling, businesses are effectively decoupling their growth from their environmental impact. They can scale up their operations without a linear increase in pollution or energy waste.

Who Benefits Most from Green Cloud Infrastructure?

While every organization can benefit from lower costs and a smaller carbon footprint, certain sectors stand to gain the most from sustainable IT infrastructure.

SaaS Companies
Software-as-a-Service providers run 24/7. Their margins are heavily dependent on hosting costs. Moving to an eco friendly hosting for business model allows SaaS platforms to lower their cost of goods sold (COGS) while marketing their application as a sustainable solution to end-users.

AI and Machine Learning Workloads
AI training models require massive computational power and generate intense heat. These high-density workloads are perfectly suited for liquid cooling, which prevents throttling and ensures faster training times.

Enterprises with ESG Goals
Large corporations are under increasing pressure to disclose their carbon emissions. Scope 3 emissions (indirect emissions from the supply chain) include cloud services. Using a green cloud provider instantly improves a corporation’s sustainability reporting.

How to Choose a Sustainable Cloud Provider

Not all “green” claims are created equal. Greenwashing is prevalent in the tech industry, with providers buying carbon offset credits to mask inefficient operations. To find true sustainable cloud hosting, look for:

1. Energy Transparency: Does the provider publish their PUE and WUE scores? Real sustainability requires real data.
2. Cooling Technology: Ask if they use air conditioning or liquid cooling. This is the single biggest differentiator in efficiency.
3. Component Lifecycle: Does the provider manufacture their own servers? Do they have a plan for recycling and refurbishing old hardware?
4. Certifications: Look for ISO 50001 (Energy Management) and ISO 14001 (Environmental Management) certifications.

Using a green cloud provider checklist like this ensures you are partnering with a vendor that aligns with your values and your budget.

Business ROI Beyond Energy Savings

The return on investment (ROI) of adopting green cloud technology extends beyond the electricity bill. It impacts brand value and long-term stability.

Consumers and B2B buyers are increasingly voting with their wallets. A brand that can demonstrate a low-carbon supply chain has a competitive advantage in the market. Furthermore, as governments worldwide implement stricter carbon taxes and energy regulations, businesses already utilizing sustainable infrastructure will be ahead of the compliance curve.

Choosing a provider with water-cooling technology also implies a commitment to innovation. It ensures your infrastructure is future-proofed against the rising thermal demands of next-gen hardware, securing operational stability for years to come.

FAQ – Green Cloud & OVHcloud Water Cooling

Q1: What is water cooling in data centers?

Water cooling is a method of lowering server temperatures using liquid instead of air. In OVHcloud’s implementation, water flows through tubes connected directly to the hottest components (CPU/GPU) to absorb and remove heat. This is far more efficient than traditional air conditioning because water conducts heat better than air.

Q2: How does OVHcloud reduce energy consumption?

OVHcloud reduces energy consumption primarily by eliminating the need for power-hungry air conditioning units and server fans. Their proprietary water-cooling system and optimized airflow allow them to achieve a low Power Usage Effectiveness (PUE) score, meaning less energy is wasted on cooling infrastructure.

Q3: Is water cooling more reliable than air cooling?

Yes, water cooling is generally more reliable for high-performance computing. It maintains stable component temperatures, preventing “hot spots” that can lead to hardware failure or performance throttling. This ensures consistent server performance even under heavy workloads.

Q4: Does green cloud hosting cost more?

Contrary to popular belief, green cloud hosting can be more cost-effective. Because the provider spends less on electricity to cool their data center, they can offer competitive pricing. Additionally, the ability to run higher-density servers reduces physical space requirements, further lowering costs.

Q5: How much energy can water-cooled data centers save?

Water-cooled data centers can significantly reduce the energy used for cooling. While traditional centers might use 50% or more of their total power just for cooling and ventilation, a highly efficient water-cooled facility can drop that percentage to near single digits, resulting in substantial total energy savings.

Q6: Which cloud providers offer sustainable infrastructure?

OVHcloud is a leader in sustainable infrastructure, having used water cooling since 2003. When evaluating providers, look for those who publish their PUE scores, use renewable energy, and utilize liquid cooling technologies rather than just offsetting carbon emissions with credits.

Secure Your Future with Sustainable Infrastructure

The choice of a cloud provider is no longer just a technical decision; it is a strategic one. As the digital world expands, reliance on outdated, energy-intensive cooling methods is becoming a liability.

OVHcloud’s water-cooling technology offers a proven path forward. It delivers the high performance modern businesses demand while significantly cutting costs and carbon emissions. By transitioning to a green cloud, you aren’t just optimizing your IT budget—you are building a more resilient, responsible, and future-proof business.

Ready to reduce your carbon footprint and your cloud bill? Explore how OVHcloud can power your sustainable growth today.