European data centres struggle to meet net zero targets amid energy volatility

European data centres are facing considerable challenges in achieving net zero carbon emissions, as a recent report by Aggreko has highlighted a shift in priorities among industry executives amid volatile energy costs and grid instability. The report reveals that over 90% of surveyed executives have altered their net zero targets, with half extending their timelines primarily due to persistent energy-related challenges that complicate the pursuit of sustainability goals.

Data centres, known for being some of the largest energy consumers in Europe, find themselves in a delicate balancing act between their environmental commitments and the imperative for economic feasibility. As energy prices soar, data centre operators are increasingly turning to decentralised energy solutions. Aggreko’s findings indicate that 87% of executives are currently implementing some form of decentralised energy, with 54% planning to expand these systems. This trend towards decentralisation is viewed as a means to enhance operational resilience and decrease reliance on traditional energy grids, which have proven to be unpredictable and costly.

Despite these efforts, many executives remain hesitant to pledge to ambitious decarbonisation timelines. Only 12% of CEOs cited the speed of decarbonisation as their primary objective, while the majority prioritised reducing energy costs and gaining a commercial edge. This focus on financial viability is critical, given the tight profit margins prevalent in the sector. Executives are cognisant that any investment in sustainable practices must promise a demonstrable return on investment, making large-scale green initiatives particularly challenging under the current economic climate.

One of the significant hurdles to progress highlighted in the report is the impact of supply chain disruptions on the energy transition. Nearly half of the executives view supply chain issues as a considerable barrier, with 21% ranking these challenges as their top concern. Sourcing the necessary technology and resources for sustainable upgrades has become problematic, further complicating the journey towards net zero, especially in obtaining low-carbon energy options.

In light of these challenges, Aggreko advocates for the establishment of strategic partnerships between data centres and energy providers. Such collaborations could allow data centres to better navigate the evolving energy landscape by assessing alternatives like energy-as-a-service models and power purchase agreements, which present flexible and lower-risk options compared with traditional energy procurement. These partnerships provide a pathway for data centres to explore innovative energy strategies without overextending their financial commitments, which is essential for achieving both short-term and long-term sustainability objectives.

While the conditions may not be conducive to rapid decarbonisation, the report indicates that there is still a prevailing commitment to sustainability among data centre leaders. With 80% of CEOs intending to increase their investments in energy solutions, albeit gradually, there is a sense of optimism for ongoing improvements. By adopting a measured approach that responds to the economic realities of today’s market, data centres can continue their journey towards a more sustainable future while meeting the operational demands they face.

Source: Noah Wire Services