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The Savills Blog

Why rising energy costs will force data centres to get greener faster

With the on-set of Covid-19 the world migrated online meaning demand for data centres skyrocketed. However, with data centres requiring vast amounts of electricity, pressure has been mounting on operators to cut their energy use and run their facilities both more efficiently and sustainably.

This is even more critical in the face of rising energy costs. According to the European Commission, between December 2020 and 2021 the import price for energy across the Euro area more than doubled (115 per cent). Consequently, all data centre owners and operators will need to either pass on costs to their end users, or alter existing contracts to reflect these price increases.

The impact (if any), will be for consumers to demand higher efficiencies, meaning that ultimately they will favour data centres with a greater regard for green principles.

Improvements have already been made when it comes to energy efficiency, but the industry as a whole needs to react to the changing landscape. For instance, more efficient adiabatic (free air) cooling systems are already being widely deployed, providing a lower Power Usage Effectiveness (PUE). Coupled with efficiencies that can be attained with air management and the latest Mechanical & Electrical (M&E) technology, great strides continue to be made. Should the operator market invest in the required technology we should see further reductions in energy consumption as equipment and supporting infrastructure improves. As a direct result, more power will be delivered to the occupier, which in turn will increase facility revenue. 

There is a continuous cycle of new technology being installed within existing data centres, with operators investing in the latest (and most efficient) equipment. This includes adaptive control systems, LED lighting, fuel cell deployment, aisle containment and waste heat utilisation. This is more commonly seen in the design of new data centres, where the heat generated has been recycled to warm nearby buildings, such as offices or residential developments. This can help these secondary use classes repurpose waste heat and help reduce any negative environmental impacts. The bigger challenge, however, is implementing these new technologies and improving efficiency in legacy data centres, many of which will still be in operation 10 years from now.

What’s more, with the growth of renewable sources, we are seeing a focus on the use of geothermal, wind, solar, hydrogen and nuclear energy powering data centres, which is increasingly generated on-site. As part of the Climate Neutral Data Centre Pact, operators have committed to purchasing clean energy with a target of 100 per cent renewable power by 2030

All of these things are helping the industry with its energy consumption. In fact, many of the major operators are now achieving green building accreditations such as BREEAM, WELL, Green Star, ISO 50001 (energy management), USO14001 (environmental management), BCA Green Mark and Green-e, that highlight their ESG credentials to meet the increasing demand for high quality space.

This is crucial considering that a standard 100,000 sq ft data centre is serviced by the equivalent energy required to power 15,000 homes.

There are now a number of examples across the globe of truly green data centres and the numbers keep on growing.


Further information

Contact Scott Newcombe

Contact James Gray

Data centres’ green shadows

 

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