An information resource for the Commonwealth of Kentucky

Closed-Loop Cooling

What is closed-loop cooling?

Closed-loop cooling systems recirculate the same water or coolant through chillers and heat exchangers, using only small amounts of makeup water. They are common in hospitals, universities and manufacturing and can sharply reduce a data center's water consumption compared with evaporative cooling.

01The concern

The concern

When residents hear 'data center,' many picture cooling towers evaporating millions of gallons. Closed-loop designs are different, but the term is sometimes used loosely. Communities need to know which design is actually proposed and how much water it will really use.

02What the data says

What the data says

  • Closed-loop liquid cooling recirculates a fixed volume of water or coolant through pipes and heat exchangers. Water is lost only to leaks, blowdown and minor evaporation, not as the primary heat-rejection path.
  • The same approach is used in hospitals, universities, district energy plants and semiconductor manufacturing, settings where water reliability and quality matter.
  • Air-cooled and hybrid systems use little or no water but consume more electricity. Closed-loop designs balance water and energy use.
  • Direct-to-chip liquid cooling for high-density AI hardware can be closed-loop and typically uses less water than traditional cooling towers because heat is captured closer to the source.
  • 'Closed-loop' is not a guarantee of zero water use. Makeup water, water treatment chemicals and blowdown disposal still need to be disclosed and permitted.

03What responsible development looks like

What responsible development looks like

  • Require the developer to name the cooling technology and publish projected annual water withdrawal and consumption.
  • Distinguish 'closed-loop' from 'zero water' by disclosing makeup water, blowdown and chemical use.
  • Match the cooling design to local water availability and wastewater capacity.
  • Use non-potable or reclaimed water for makeup where feasible.
  • Report actual water use annually against the projection.

04Kentucky context

Kentucky context

Kentucky's water resources are generally abundant, but local treatment and distribution capacity govern what a specific site can use.

The Kentucky Division of Water permits withdrawals; KPDES permits govern discharge. Both records are public.

Several Kentucky data center proposals, including TenKey in Franklin, have stated they will use closed-loop cooling. The specific design and water source should still be confirmed in permit filings.

05Sources

Sources

  • Data center energy and water research

    Source: Lawrence Berkeley National Laboratory

  • Water withdrawal and KPDES permit records

    Source: Kentucky Division of Water

  • Local water district capacity studies

    Source: Local water districts and municipal utilities

  • Project-specific cooling and permit disclosures

    Source: Local data center developers

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