Data centres have grown to become an integral part of our economy. Processing vast amounts of data, these facilities require vast amounts of electrical power to run, and with the rise of AI, this demand looks set to accelerate well into the future.
At CFP Energy, we help organisations manage energy consumption in data centres and other high-capacity facilities. Our expertise helps data centre operators understand their energy use, improve efficiency and meet environmental regulations. To see how we can help you reduce your emissions and meet your ETS commitments, contact our team today.
In the meantime, this article will explore the most recent issues facing data centre operators, from escalating AI-driven energy consumption to grid stability and renewable energy integration.
Understanding data centre power consumption
Data centres consume electricity across three main areas:
IT Infrastructure: this covers all the IT hardware typically found in a data centre, from servers and hard drive to network devices and cooling fans. These components must run continuously to support 24//7 uptime and, as a result, require a constant source of power.
Control and Support Systems: a significant portion of energy used by data centres is taken up by maintaining optimal conditions for the on-site premises. Cooling systems represent the largest component, while other support systems include uninterruptible power supplies (UPS), security systems, as well as lighting.
Power Usage Effectiveness (PUE) measures how efficiently a data centre converts total energy input into useful IT work. This ratio outlines a facility's energy overhead. A PUE approaching 1.0 means nearly all electricity powers IT equipment directly. The current industry average is approximately 1.5.
The Growing Scale of Energy Demand
Data centres are in high demand. Cloud computing expansion has driven consistent growth, but artificial intelligence applications now represent the main driver of growth.
AI models require intensive parallel processing and complex computations, which require lots of power. Global data centre electricity demand could double by 2030, with AI workloads as the main catalyst.
In high-demand areas, such as the UK, data centres may account for a substantial percentage of total national electricity consumption within the next few years.
Beyond carbon emissions, data centre power consumption faces significant climate challenges. The most commonly discussed environmental challenge is the water that data centres use for cooling, otherwise known as the ‘water footprint’ of data centres.
In a recent article, the World Economic Forum estimated that a 1MW data centre could use up to 25.5 million litres a year for cooling, a figure equivalent to the daily water consumption of around 300,000 people, and an amount that puts freshwater reserves under pressure.
This emphasises the importance of implementing circular water management solutions, such as water replenishment and optimisation within data centres.
Data Centre Power Sources
Most data centres draw electricity from national or regional power grids. The environmental impact of data centres, as a result, depends directly on the grid's generation mix (i.e. the proportion of fossil fuels versus the types of renewable sources used).
Because data centres require continuous uptime, they also maintain backup power systems. These are likely to be based on on-site diesel generators, or Battery Energy Storage Systems (BESS).
While necessary for reliability, these generators create direct emissions and, as such, contribute to Scope 1 emissions. While necessary for reliability, these generators create direct emissions and, as such, contribute to Scope 1 emissions. To avoid these emissions, the data centre sector is shifting toward renewable energy procurement.
Power Purchase Agreements (PPAs) allow data centre operators to contract directly for clean electricity at predictable rates. Renewable Energy Certificates (RECs), meanwhile, provide verification that purchased electricity originates from renewable sources.
When combined with on-site clean energy, such as solar or wind power systems, PPAs can reduce reliance on fossil fuels and the greenhouse gases they release into the atmosphere.
Managing Power Demand
Addressing the data centre power demand requires a two-pronged approach, with attention paid to both operational efficiency and clean energy integration.
Alongside thermal reduction strategies, such as circular water management solutions and direct-to-chip cooling, employing benchmarks like Power Usage Effectiveness (PUE), and accessing renewables through energy contracts like Power Purchase Agreements (PPAs) point the way ahead.
Equipment lifecycle also plays a significant role in data centres energy consumption. Extending the lifespan of equipment by recycling materials, as well as promoting refurbishment, will ensure that embodied carbon and electronic waste is minimised across the supply chain.
CFP Energy: Data Centre Energy Optimisation
CFP Energy understands that effective data centres energy consumption management requires a comprehensive analysis of all greenhouse gas emissions, running from Scope 1 and Scope 2 to Scope 3. We work with data centre operators to analyse energy efficiency opportunities and source renewable electricity through flexible mechanisms like PPAs.
Contact our carbon specialists to see how CFP Energy can support your data centre's energy performance and sustainability goals today.
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