Data centre sustainability: turning challenges into opportunities

As sustainability shifts from a "nice-to-have" to a critical business requirement, data centres find themselves at a crossroads.

With data centres expected to consume over 1,000 TWh of electricity by 2026, equivalent to Japan's entire electricity usage, operators face mounting pressure to adopt cleaner, more efficient practices. Meeting these demands isn't just about compliance; it’s a chance to lead in an increasingly competitive market.

Clients and end-users now demand environmentally responsible solutions, and operators that fail to deliver risk falling behind. At LCP Delta, we’ve closely studied the evolving needs of data centre operators and engaged directly with industry leaders to understand their priorities. Our latest insights reveal what operators value most in sustainability and how providers can meet these demands effectively.

Integrated sustainability: Meeting data centre challenges head-on

Today’s data centre operators require more than superficial green claims—they need robust, integrated sustainability strategies that tackle energy efficiency, carbon neutrality and transparent reporting. These frameworks are crucial for managing environmental impact while meeting tightening regulatory standards.

Key pillars of an effective strategy include:

• Renewable energy integration to reduce reliance on fossil fuels.
• Advanced efficiency measures to optimise power usage and cooling systems.
• Transparent, real-time tracking of emissions and energy use to build client trust.

By focusing on these pillars, operators can mitigate risks, reduce costs and set themselves apart in a crowded market.

6 key customer demands for sustainable data centres

At LCP Delta, we’ve identified six key areas where data centre operators can excel to stay competitive:

1. Proactive compliance with regulations: Staying ahead of regulations is non-negotiable. Frameworks like the Energy Performance of Buildings Directive (EPBD) and Energy Efficiency Directive (EED) impose strict sustainability standards. Staying ahead of these regulations not only mitigates financial penalties but also establishes trust and reliability.
2. Transparency that builds trust: Modern clients expect more than vague sustainability claims. They want real-time, data-driven insights into energy use, emissions and progress toward net zero goals. Solutions like Schneider Electric’s EcoStruxure exemplify how real-time tracking fosters confidence.
3. Renewable energy as standard: The integration of renewable energy is now an expectation. Solutions such as solar, wind and energy storage systems, as well as corporate Power Purchase Agreements (PPAs), are becoming the norm. Industry giants like Amazon, Microsoft, and Google have collectively contracted nearly 50 GW of renewable capacity, equivalent to Sweden's entire generation capacity.
4. Operational efficiency as a benchmark of excellence: Optimising cooling systems, power usage, and resource efficiency is critical for reducing costs and demonstrating innovation. For instance, Google's data centres have achieved a 40% reduction in in cooling energy through AI-driven efficiency measures.
5. Tangible carbon neutrality: Gone are the days of relying on offsets. On-site renewable generation, advanced energy storage, and innovative technologies like hydrogen fuel cells are becoming the gold standard. The GB battery pipeline, expected to reach 4 GW by 2023, highlights the rapid growth in sustainable alternatives.
6. Futureproofing for growth: The rise of AI workloads is projected to increase data centre power demands by 50% by 2030. Modular designs, such as Microsoft’s containerised centres, allow for scalable growth without straining the grid. By adopting modular energy systems and grid-flexible renewables, operators can ensure resilience while meeting future demands.

Tailored sustainability solutions for every data centre type

Sustainability goals vary widely depending on the type of data centre:

• Edge data centres: Prioritising localised energy solutions and modular designs, edge data centres aim to deliver low-latency services sustainably. However, they often face budget constraints and limited access to renewable options.
• Hyperscale data centres: Focus on large-scale renewable energy integration and AI-driven optimisation to achieve net zero targets. Microsoft’s five-year agreement with Brookfield Renewable Partners to develop 10.5 GW of renewable capacity illustrates the scale of their commitment. Balancing high costs with grid reliability remains a key challenge.
• Colocation data centres: Over 75% of senior executives in colocation centres consider ESG factors crucial for value creation. Certifications like LEED Platinum improve tenant retention and demonstrate sustainability ROI. Scaling solutions while meeting diverse tenant needs is a significant hurdle.

Each type faces unique challenges, but all require innovative, flexible strategies to succeed in a sustainable future.

Discover what’s next for data centres

Sustainability is no longer optional for data centres; it’s the foundation for long-term success. At LCP Delta, we work with suppliers and operators to develop tailored strategies that address their unique challenges and help them achieve measurable results.