- CFP Energy's survey shows that 90% of data centres in the UK, France, and Germany have decarbonisation strategies, but only 52% of French operators are meeting targets, compared to 70% in Germany and 78% in the UK.
- Lack of technology (69%), funding issues (61%), and regulatory complexity (63%) are major obstacles, with smaller data centres struggling the most.
- AI’s rise fuels computing demand, pushing data centres to their limits and complicating decarbonisation efforts.
As global demand for data processing surges and with it, an increase in energy demand and carbon emissions from data centres, operators across the UK, France and Germany are battling to achieve decarbonisation targets.
While most data centre operators have taken steps toward decarbonisation, significant barriers threaten progress, with the rapid growth of artificial intelligence (AI) intensifying energy usage and complicating sustainability goals.
The full report: ‘Decarbonising the Future: Navigating ETS Reforms and Net Zero Solutions’, highlights similar challenges across aviation, manufacturing, shipping and construction sectors.
Decarbonisation strategies show mixed progress across countries, CFP Energy survey finds
90% of all data centres surveyed have a decarbonisation strategy, with the UK leading at 94%, followed by Germany (90%) and France (86%). However, success in hitting targets reveals a sharper divide. Only 52% of French operators report meeting their decarbonisation goals, compared to 70% in Germany and a notable 78% in the UK.
Data centres in Europe face key hurdles in decarbonising, with multiple challenges highlighted by respondents
69% cite a lack of suitable technology, hindering the adoption of renewable energy or energy-efficient systems. 61% identify funding limitations as a barrier, with high upfront costs delaying green investments. 63% point to regulatory complexity as a challenge, particularly for cross-border operations.
Knowledge gaps also exacerbate difficulties, especially for smaller data centres struggling to design and implement effective decarbonisation strategies.
AI: Fueling expansion and exacerbating energy pressures in data centres
AI is reshaping the industry, driving unprecedented growth in computing power demand. While AI adoption is critical for innovation, its energy-intensive nature is pushing data centres to their limits. While AI has the potential to accelerate the energy transition through predictive systems and efficiency optimisation, its current implementation often exacerbates the strain on energy resources.
The survey highlights an urgent need for collaboration across governments, industry stakeholders, and technology providers to address these barriers. Streamlined regulatory frameworks, enhanced funding mechanisms, and technological innovation will be critical to ensure data centres can meet rising energy demands sustainably.
George Brown, Energy & Environmental Analyst at CFP Energy, shared his concerns
“Data centres operate at the cutting edge of the technology sector, many of which are operated by the largest tech firms on the planet. And yet they are becoming a major issue for businesses to manage from an energy consumption and carbon emissions perspective.
As more applications of AI and new technology, such as self-driving cars get online, the demand for data will continue its exponential growth. It’s a double-edged sword because AI is offering incredible advances across medicine, STEM, transport and education. It’s not just about asking silly questions and writing dodgy social media posts…The issue is that we need to work out how to reduce our energy and power demand from fossil fuels (which data centres have to rely upon to maintain constant uptime), and develop the grid-based and energy-storage solutions that harness the natural and renewable energy we have around us”
CFP Energy urges industry leaders to act decisively, leveraging insights from this survey to shape policies and partnerships that accelerate the energy transition. Access the full results here.
