Decarbonising data centres: Challenges and solutions for a sustainable energy supply

Data centres consume vast amounts of electricity to power servers, cooling systems and network infrastructure. According to the International Energy Agency (IEA), global electricity consumption by data centres could exceed 1,000 TWh by 2026. This demand is driven by the exponential growth in data processing needs, particularly with advancements in AI and cloud computing. 

The energy trilemma — affordability, sustainability and reliability — poses a significant challenge for data centres. They must balance the need for cost-competitive solutions with sustainability legislation and maintain ultra-reliable power sources.

Finding suitable locations that can provide renewable energy or hydrogen is a significant challenge for data centres. Renewable energy sources, such as solar and wind, are often intermittent and may not meet the continuous power demands of data centres. Hydrogen production, while promising, still faces logistical and economic barriers.

Many data centres are being developed in inner urban areas to minimise latency between users and cloud services. However, these locations often have stringent sustainability goals, requiring developers to minimise power and water consumption and make use of waste heat and renewables. High-capacity grid connections are difficult to secure and may involve non-viable lead times of five or more years.

National planning policies can further complicate the development of data centres. In the UK, for example, planning restrictions have historically hindered the construction of large-scale data centres. Although recent changes aim to loosen these restrictions, the process remains complex and time-consuming. These policies often require data centres to demonstrate their commitment to sustainability and to integrate with local energy systems, adding another layer of complexity to the planning and development process.

To address these challenges, data centres should adopt a strategic approach and consider partnerships with energy companies, including those in the oil and gas sector, who are developing sustainable energy parks with hydrogen and carbon capture and storage (CCS) technologies. 

Energy companies who are planning for transition are looking for sources of definite carbon dioxide generation or hydrogen off-takers for long periods of time (20+ years) to make renewable energy centres commercially viable. Collaborating with energy companies can provide data centres with access to innovative energy solutions and accelerate the development of power infrastructure tailored to data centre needs. These collaborations can leverage renewable microgrids, hydrogen fuel cells, and CCS to provide a reliable and sustainable power supply.

Hybrid energy solutions, which combine renewables, storage, and dispatchable power sources, offer a reliable alternative to traditional grid connections. These integrated energy systems — sometimes called islanded hybrid energy solutions — can function independently of gas or electricity grids, helping data centres meet sustainability goals and secure planning approval. By integrating renewables, storage, and on-demand power sources, these solutions provide a continuous and reliable power supply while reducing environmental impact.

Implementing hybrid energy solutions can address several challenges faced by data centres:

• Reliability: By utilising multiple energy generation sources or energy storage systems, hybrid solutions can mimic grid stability, delivering an uninterrupted power supply.

• Energy integration: Incorporating technologies such as wind and solar power, low carbon fuels, and combined heating and cooling systems can significantly reduce emissions and improve energy efficiency.

• Efficiency: Adopting energy-efficient practices and technologies can minimise operational costs and reduce the environmental footprint of data centres.

• Local energy use: Utilising recovered heat from data centres to supply local commercial or residential needs can enhance community integration and support local energy systems.

• Transition fuels: Supporting the shift to zero carbon biogas, hydrogen or renewable gases can bolster grid resilience and pave the way for a sustainable energy future.

• Strategic planning: Collaborating with network operators and local authorities for comprehensive energy planning can help data centres align with broader sustainability strategies.

• Sustainability: Implementing nature-based solutions and climate mitigation measures, such as flood protection and storm damage limitation, can safeguard data centres against environmental risks.

This holistic approach to hybrid energy solutions allows data centres to achieve their sustainability goals while maintaining the reliability and affordability of their energy supply. By addressing these key areas, data centres can confidently navigate the path towards decarbonisation and secure a sustainable, efficient, and resilient energy future.

Decarbonising data centres is a complex but achievable goal. Our key takeaways for data centres are to:

• Collaborate with energy companies to access innovative and sustainable energy solutions.

• Consider hybrid energy systems that integrate renewables, storage and dispatchable power sources.

• Focus on energy-efficient practices and technologies to minimise operational costs and environmental impact.

• Engage in strategic energy planning with network operators and local authorities.