CASE STUDY 1 Using life-cycle assessments to drive innovation in data centre cooling – Microsoft and Schneider Electric.126 PRIORITY ACTIONS: WATER USE ELECTRICITY USE Microsoft conducted an in-depth life-cycle assessment of data centre cooling technologies that demonstrated how shifting from air-cooling to advanced liquid-cooling methods (direct-to-chip and immersion cooling) can substantially reduce nature impacts. The study identified reductions in GHG emissions (15-21%), energy demand (15-20%) and blue water consumption (31-48%) when moving from air-cooling to liquid-cooling in a 100% grid electricity scenario. In a 100% renewable energy scenario, the study found similar reductions in GHG emissions (13-20%) and energy demand (15-20%), but a considerably greater reduction in blue water consumption of 50-82%, when moving from air-cooling to liquid-cooling. When modelling a fully renewable energy scenario, a 10 MW data centre could see annual savings of $1.0-1.4 million in energy costs and $220,000-365,000 in water costs. While not directly experienced by the data centre, this would also save an additional $3.4-5.6 million in water costs from energy generation. When comparing capital considerations between air-cooling versus liquid-cooling, Schneider Electric published a white paper that calculated capex costs are almost identical for 10 kW racks, at $7.02 for air-cooling and $6.98 for liquid-cooling. As rack density increases, liquid-cooling sees additional cost savings as it enables more compact racks without requiring equivalent increases in equipment. Microsoft’s cooling assessment, supported by Schneider Electric’s capital review, highlights that liquid-cooling is a feasible way to reduce nature impacts and reduce costs for data centre operators. Shift from air-cooling to liquid-cooling reduces data centre impacts and costs GHG emissions Energy demand Blue water consumptionReductions in Cost savings/year for 1 0 MW data centre100% grid electricity scenario 100% renewables scenario15-21% 15-20% 31-48% 13-20% $1.0 – 1.4 million $220,000 – 365,00015-20% 50-82% Nature Positive: Role of the Technology Sector 45

Nature Positive Role of the Technology Sector 2025