Ben Pritchard, CEO, AVK
As digital technologies continue to shape the modern world, data centres have emerged as vital infrastructure underpinning countless sectors, from finance and healthcare to artificial intelligence and entertainment.
However, with their growing significance comes an equally expanding environmental footprint. As the urgency to address climate change intensifies, the spotlight is firmly on how data centres can balance rising demand with responsible energy management.
Effective energy strategies are essential to minimise environmental impact and ensure resilience, grid stability, and long-term operational viability. In today’s environment, achieving sustainability goals requires immediate action and a long-term vision. The data centre sector is uniquely placed to lead by example, demonstrating how innovation, flexibility, and collaboration can forge a path toward a net zero future.
Closing the Gap Between Demand and Supply
Data centres are among the most energy-intensive facilities globally, with demand projected to rise steadily in the coming years. According to industry forecasts, global electricity consumption from data centres could reach up to 8% of total demand by 2030. Meanwhile, while promising, the expansion of renewable energy infrastructure has not yet matched the pace required to meet this growing need sustainably.
Bridging this gap calls for adaptable, forward-thinking energy management strategies. Deploying scalable microgrid solutions that integrate renewables such as solar and wind alongside transitional fuels like hydrotreated vegetable oil (HVO) offers a pragmatic route to strengthening both on-site and grid-level resilience. These hybrid systems allow data centres to optimise their own energy use while contributing to broader energy transition efforts.
Harnessing Flexibility for Grid Stability
In the shift towards a greener energy landscape, grid flexibility is paramount. Data centres have a significant opportunity to support grid stability by adopting intelligent energy management systems. By embracing technologies that enable dynamic load management, on-site energy storage, and grid-responsive operations, facilities can become active participants in balancing energy supply and demand.
Microgrids, particularly when combined with smart control technologies, allow facilities to operate independently or in synchrony with the main grid. During periods of peak demand, surplus energy can be exported back to the grid, reducing the need for carbon-intensive peaking plants. This approach transforms data centres from passive energy consumers into active contributors to a more sustainable and resilient energy system.
Looking ahead, the integration of large-scale campuses—sometimes exceeding 1 GW of capacity—into local energy ecosystems will become increasingly critical. Flexible energy assets will not only underpin site reliability but will also play a central role in national decarbonisation strategies.
Preparing for Tomorrow with Innovation Today
While the ultimate renewable energy mix for data centres is still evolving, it is crucial to design and implement energy systems with future fuels in mind. Hydrogen, biogas, sustainable aviation fuels (SAFs), and other emerging technologies will form essential parts of tomorrow’s decarbonised energy landscape.
Forward-looking designs incorporating adaptability ensure that today’s investments remain relevant as the energy landscape evolves. Systems engineered for fuel flexibility can transition seamlessly from current low-carbon alternatives to fully renewable fuels, future-proofing infrastructure and reducing the risk of stranded assets.
Innovation must also extend beyond technology. Investing in the next generation of skilled engineers, project managers, and energy specialists is fundamental. Training programmes, apprenticeships, and industry collaborations are vital to cultivating a workforce ready to meet the complex challenges of sustainable energy management in data centres.
Collaborating Across the Ecosystem
Achieving meaningful progress towards net zero demands extensive collaboration across the supply chain and wider community. Early engagement between power systems specialists, renewable energy providers, planning authorities, and utility companies can unlock synergies that drive more effective project outcomes.
For instance, planning data centres as integrated components of local energy ecosystems opens up opportunities for waste heat recovery. Excess thermal energy generated during data centre operations can be harnessed to supply district heating networks, benefitting residential developments, swimming pools, and businesses. Proactive stakeholder engagement can help identify such opportunities early, ensuring that projects deliver broader societal benefits and foster positive community relationships.
Collaboration can also help optimise energy strategies across portfolios. Coordinated approaches to load balancing, site clustering, and shared renewable generation assets could further reduce emissions and enhance the digital economy’s overall sustainability.
The Role of Standards and Policy Support
While technology and collaboration are critical, supportive regulatory frameworks and industry standards are equally important. Clear policies that incentivise the deployment of low-carbon technologies enable flexible grid participation and encourage investment in future-ready infrastructure, which will accelerate the journey towards sustainable data centre operations.
The development of internationally recognised green certifications and energy performance standards for data centres is also helping to raise the bar across the industry. These frameworks not only provide benchmarks for best practices but also offer reassurance to stakeholders that sustainability claims are underpinned by verifiable metrics.
Organisations operating within this sector must advocate for policies that enable progress while remaining agile enough to adapt to evolving requirements. Building an open, transparent dialogue with regulators and policymakers will be key to shaping a supportive landscape that enables innovation to flourish.
Conclusion
The transition to a net zero future represents one of our time’s most complex and urgent challenges, and data centres have a critical role to play. Through strategic energy management, innovative system design, flexible operations, and broad collaboration, the sector can redefine its relationship with the environment.
Energy management is no longer a back-end concern but fundamental to business resilience, reputation, and responsibility. By embracing technologies and approaches that bridge today’s realities with tomorrow’s aspirations, data centres can not only meet the demands of the digital economy but also do so in a way that champions environmental stewardship and social responsibility.
The path ahead will require ambition, investment, and ingenuity, but it offers immense opportunity for those ready to lead the way.
This article appeared in the October 2025 issue of Energy Manager magazine. Subscribe here.