By Rosanne Kincaid-Smith, COO at Northern Data Group
Data centres have become indispensable to our digital lives, supporting everything from music streaming and photo storage to services like Netflix and healthcare systems. However, they have a real, tangible impact on the world that will become more alarming unless action is taken now
Operating data centres demand an immense amount of energy. Currently, they consume about 1.5% of the world’s total energy, and this figure is expected to grow due to the increasing role of AI. The International Energy Agency’s Electricity 2024 report warns that the electricity used by data centres, AI, and cryptocurrency could double by 2026. To put it in perspective, the global electricity consumption of data centres could exceed 1,000 TWh in 2026 – this is comparable to the energy usage of Japan, which has a population of around 125 million.
Even leading tech companies are finding this energy challenge a struggle. For instance, Microsoft’s 2024 Environmental Sustainability Report revealed that the company’s total carbon emissions have increased by almost 30% since 2020, largely due to the expansion of their data centres. As pressure mounts on organisations to cut and disclose emissions, it’s no longer just their moral imperative but also a strategic advantage to partner with sustainable data centres. If industry giants like Microsoft are struggling to meet sustainability goals, then how can other innovators lead the way?
Understanding the full scope of sustainability
Aside from providing people with physical access to AI, a crucial part of digital equity is ensuring that AI’s operation has a minimal impact on people and our planet. Powering data centres via fossil fuel energy for the benefit of one organisation or country is fundamentally unjust because the pollution generated will negatively affect the rest of the world.
However, sustainability is not simply a question of emissions and carbon neutrality. In reality, data centres exist within complex energy and logistical ecosystems. So, they should be tailored to meet the needs of those ecosystems. Electricity grid stability, noise pollution (particularly if a centre is close to a local community), energy circularity via excess heat reuse and more all contribute to a holistic view of data centre sustainability.
The concept of green data centres is increasingly feasible, even with the market expansion driven by cloud services and GenAI, thanks to innovations in energy efficiency, cooling technologies and the growing availability of renewable energy. To help ensure AI has a universally positive impact on society, businesses and governments must either build or collaborate with infrastructure that is CO2-neutral. So, let’s explore what you need to look out for when selecting your data centre partner – and why it’s important.
1. Using clean carbon-free energy
Using data centres powered by renewables is one of the most impactful ways you can lower your own, and the world’s, carbon emissions. Many centres now use purely clean energy or offset through renewable energy certificates. As net-zero targets approach, businesses who commit to solely carbon-free energy early will likely emerge as industry leaders in the eyes of consumers, as competitors rush later to catch up.
According to the International Energy Agency, several major data centre operators have set and/or achieved targets to use 100% clean electricity on an annual matching basis. This transformation will likely involve both public and private investment, with costs potentially shared between governments, utility companies, and data centre operators. The focus will be on upgrading grid capacity, integrating renewable energy sources, and enhancing energy storage solutions. Businesses looking to leverage AI technology can therefore get ahead by choosing 100% carbon-neutral data centre providers today.
2. Top energy-efficiency ratings
With data centre power demands projected to reach 35 Gigawatts by 2030, a fundamental change in power infrastructure will be essential. Innovations such as advanced cooling techniques (like liquid cooling and immersion cooling), AI-driven energy management systems and the development of more energy-efficient hardware are key strategies. These technologies aim to reduce energy consumption while allowing data centres to expand services. Additionally, adopting on-site renewable energy generation and energy storage solutions can mitigate the impact of rising energy prices.
Meanwhile, the efficiency of data centres is evaluated by a Power Usage Effectiveness (PUE) ratio, which is determined by the total amount of energy used by a centre to the energy delivered to its computing equipment. The current industry standard is around 1.5, but the ideal is 1, which means a data centre is essentially neutral – so businesses should look for ratios as low as possible. This way, you can ensure maximum value for your payments and resources, while minimal energy waste means greater sustainability.
Energy prices will likely affect smaller data centres more severely than hyperscale facilities. Hyperscale data centres can leverage economies of scale to invest in energy-efficient technologies and negotiate better energy rates. Smaller data centres might struggle with the capital investment needed for such technologies, potentially affecting their competitiveness and profitability.
3. Advanced strategies for water conservation
Water is our most critical natural resource, but it’s finite and irreplaceable. However, data centres often consume huge amounts of water, mainly to help cool power-intensive equipment. A large data centre can consume as much as 5 million gallons of water a day, the same as a town with a 50,000 population. As natural resources grow increasingly scarce, data centres’ water monopolisation could contribute to droughts, biodiversity losses and social inequality. Organisations must partner with centres that reuse their water, take it from recycled and reclaimed sources like rain or – best of all – use as little water as possible.
A comprehensive approach to sustainability is essential for progress. Companies should seek out partnerships with organisations that recognise the advantages of clean energy and sustainability practices. It’s crucial to evaluate the impact of both hardware and infrastructure throughout their entire lifecycles. Now that more governments and entities like the EU begin developing sustainability ratings business must ensure their providers are contributing positively to sustainability efforts rather than worsening the issue. Ultimately, robust and secure data centre infrastructure is vital for the future of AI.
