The road to a truly sustainable data centre

Jon Healy at Keysource argues that carbon credits argues that should be the last step in a comprehensive sustainability strategy

 

The tech sector’s deepening embrace of US-backed carbon credit initiatives, showcased throughout last month’s climate week in New York, represents a fundamental shift in how data centres approach sustainability.

 

This evolution extends beyond mere compliance with regulations, reflecting an understanding that urgent action is needed to address the industry’s expanding environmental impact amid surging global digital consumption. 

 

As data centres draw heightened attention, their escalating power usage and carbon emissions require more substantial interventions than carbon offsetting alone.

 

While offsetting programs offer short-term advantages, they don’t address the fundamental challenges of environmental stewardship.  

 

Developing effective sustainability practices for data centre operations demands a holistic strategy that transcends carbon credits. The entire data centre lifecycle needs reimagining – from location planning and architectural design to operational excellence and supply chain management. This transformation not only minimises environmental impact but also creates pathways for innovation, operational savings and alignment with emerging regulatory standards. 

 

The regulatory landscape and its impact 

The critical challenge now facing the industry is whether it can reconcile its exponential growth with substantive environmental progress—or if it will continue relying on interim solutions that merely delay the inevitable. As this debate unfolds, the regulatory landscape is adding a new layer of urgency to the discussion. 

 

The regulatory framework overseeing data centres is experiencing change, driven by the rollout of the Energy Efficiency Directive (EED) and the Corporate Sustainability Reporting Directive (CSRD).

 

These initiatives establish benchmarks for energy stewardship and disclosure, positioning data centres at the heart of corporate sustainability efforts. The EED specifically targets data centre operations, mandating energy efficiency measures that necessitate operational transformations, while the CSRD expands corporate responsibility through mandatory comprehensive reporting of Scope 1-3 emissions. This heightens scrutiny of data centres, given their pivotal role in the wider commercial landscape. 

 

These directives extend beyond changing operational practices—they are reshaping industry standards, demanding more concrete, measurable sustainability initiatives. Furthermore, the CSRD’s requirement for transparent, detailed emissions reporting is cultivating greater accountability, compelling data centres to monitor and actively curtail their carbon footprint with increased precision. 

 

Location has emerged as a crucial element in navigating this evolving regulatory sphere. Facilities located in regions accessing low-carbon power networks—such as France’s nuclear-powered grid or Scandinavia’s abundance of hydroelectric and wind resources—are establishing distinct advantages. This variation in regional energy profiles increasingly influences facility placement, with sustainability considerations now carrying equal weight to traditional criteria like connectivity and power availability in strategic planning. 

 

Sustainable design and operations 

As regulatory frameworks set the foundation for more sustainable data centre practices, meaningful progress depends on the adoption of design and operational strategies. 

  

The environmental footprint of data centres extends beyond energy consumption to include considerations like site selection, construction methods, and material sourcing. The choice between greenfield and brownfield sites plays a crucial role in sustainability. While greenfield developments risk causing habitat destruction and biodiversity loss, brownfield sites present an opportunity for urban regeneration with reduced ecological disruption. 

  

Innovation in materials has also become a central focus, especially in battery technology. Evaluations of modern battery systems now go beyond performance to consider the full environmental impact of mineral extraction and production. This includes assessing water usage in manufacturing and the broader ecological consequences of sourcing raw materials. 

  

Additionally, the industry is placing greater emphasis on social responsibility. The scrutiny of rare earth mineral sourcing has intensified, with careful attention to mining conditions and locations. This commitment to ethical sourcing highlights the sector’s shift towards a more balanced approach between technological advancements and environmental and social accountability.

 

Moreover, data centres are increasingly repurposing byproducts like waste heat to benefit local communities—for instance, by using excess heat to warm community swimming pools or other public spaces, further enhancing their positive social impact. 

 

Supply chains and renewable energy 

In driving sustainability forward, data centres now recognise supply chain optimisation and renewable energy adoption as cornerstones of their strategy. Progressive operators have evolved beyond merely selecting environmentally conscious suppliers; they are fostering deep partnerships through sustainability initiatives, knowledge-sharing programmes, and collaborative innovation.

 

This integrated approach ensures comprehensive reduction of Scope 1, 2 and 3 emissions, cultivating environmental stewardship throughout the value chain. 

 

The deployment of carbon monitoring systems strengthens these initiatives. Through granular emissions tracking and analysis, operators can refine their decision-making processes and systematically enhance their environmental performance. 

 

Concurrently, Power Purchase Agreements (PPAs) are transforming renewable energy procurement for data centres. Whether through Green PPAs or Green Sleeve arrangements, facilities can directly fund renewable energy projects, substantially reducing their carbon footprint while accelerating the transition to clean energy infrastructure. This dual focus on supply chain excellence and renewable energy ensures sustainability permeates every operational dimension. 

 

As environmental scrutiny and regulatory oversight intensify, the industry’s sustainability journey demands more than incremental improvements. The intersection of regulatory requirements, energy demands, and supply chain considerations calls for a holistic transformation.

 

Achieving genuine sustainability hinges on operators’ capacity to revolutionise their entire operational framework—encompassing everything from location strategy and materials procurement to energy efficiency and supply chain governance.

 

The central question remains whether this can match the industry’s growth trajectory, positioning sustainability as a fundamental driver of innovation rather than a secondary consideration. 

 

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Jon Healy is CEO of Keysource 

 

Main image courtesy of iStockPhoto.com and quantic69