Amazon has detailed its efforts to reduce power and water consumption in its annual sustainability report.

Technical upgrades were touted for the cloud division Amazon Web Services (AWS), with the company claiming that it has helped cut water usage. The company last month revealed its data centers used 2.5 billion gallons of water in 2025.

Key to reducing water usage is the company's custom In-Row Heat Exchanger (IRHX), which captures heat "directly from high-density AI hardware at the rack before the heat spreads, reducing how often water-based cooling needs to run," Amazon said.

"As we add more AI racks with IRHX, we expect a nine percent reduction in water use compared to evaporative air-cooled data centers once fully operational."

The IRHX was first detailed this time last year to support the company's first liquid-cooled deployments with the Nvidia GB200 NVL72. The news briefly caused panic in the markets, with rival cooling providers like Vertiv seeing shares drop as much as 11 percent.

Amazon has also developed a custom coolant distribution unit.

Alongside the IRHX, and other facility-scale cooling systems, Amazon is deploying more liquid-to-chip cooling "in both new and existing data centers."

It said: "Instead of cooling entire buildings, we deliver precision cooling directly where heat is generated - at the chip. This approach reduces mechanical energy consumption compared to traditional cooling methods by up to 50 percent during peak cooling -without increasing water usage on a per MW basis."

The company said that it had begun to scale the use of smart-metering technology across its global data center portfolio, allowing for real-time consumption monitoring that identifies leaks so they can be repaired, preventing further water losses.

"Collectively, these and other efforts reduced cooling water use globally by 938 million liters in 2025, enabling reduction of our global data center WUE to 0.12 liters per kWh, a 20 percent improvement from 2024 and a 52 percent improvement from 2021."

As of the end of 2025, 31 data centers incorporated on-site water treatment. 26 Amazon data centers used reclaimed water for cooling, preserving 849 million liters. 14 data centers have rainwater collection systems.

For the coming years, Amazon has contracted 13 utilities to supply reclaimed water for cooling at 130 data centers, saving six billion liters of fresh water annually.

For the year, Amazon’s data centers achieved a global Power Usage Effectiveness (PUE) of 1.14.