Energy solutions for data centres
- Post Date
- 27 February 2025
- Read Time
- 8 minutes
This second article in our Data Centre Thought Leadership Series provides an overview of the dichotomy between renewables intermittency, as a sustainable energy solution, and the requirement for high levels of data centre uptime amongst other incumbent technologies. We highlight some data centre KPIs, what they measure and then examine the subsequent impact of higher, or lower, levels of renewable energy solutions on them.
Other topics in the series
Coming soon
- Sustainable AI - mitigating water risks in the data centre boom
- Sustainability & net zero data centres – how to reduce emissions & energy waste
- Grid resilience & energy security for data centres – ensuring uninterrupted operations
Data centres are the backbone of the digital economy, supporting cloud computing, AI, and the rapid expansion of data-driven industries. However, they are also energy-intensive facilities, with AI server sizes now running at 10-20x power levels of legacy servers and continuing to requiring round the clock power to maintain operations. With electricity making up a significant portion of running costs and sustainability taking centre stage in corporate strategies, a key challenge emerges: how can data centres ensure reliability while integrating renewable energy sources that are inherently intermittent?
The answer is in a strategic combination of energy storage, backup power, and smart grid participation. By adopting innovative solutions, data centres can not only improve their uptime and energy security but also play an active role in supporting grid stability and the broader transition to a low-carbon energy system.
How data centre computational power is evolving
Data centres are requiring more power to sustain operations as advances in computation power exponentially rise with AI. The graphic below shows a comparison of how data centre processing power has evolved in the last decade and compares this to the processing power of the human body [1]; our conscious mind, subconscious mind and sensory systems.
Data centres of 2010s vintage relied on Central Processing Unit (CPU) based servers which handle tasks sequentially. 2020s AI data centres now rely on Graphics Processing Unit (GPU) based servers which use parallel processing for graphics and complex calculations simultaneously. This is ideal for video editing, machine learning and gaming applications. On the chart below, the computational power of an individual human system barely registers compared to 2010s and 2020s AI data centres.
Overcoming renewable energy intermittency
Addressing the challenge of reliability requires a systems thinking approach to energy solutions for this highly advanced computational infrastructure. Battery storage is a critical solution bridging the gap between fluctuating renewable generation and continuous data centre demand. By storing excess renewable energy during peak production periods and discharging it during low-generation periods, battery storage helps ensure a consistent, high-quality power in the short term up to the duration of the battery. SLR is seeing longer durations of battery storage coming to the market, for example in recent Capacity Market rounds. Ongoing advances in longer duration storage technologies will have wider application for data centres in the future.
Onsite renewable energy and microgrids are being used with on-site solar and wind power to supplement grid electricity. As microgrids, these facilities can operate independently or semi-independently of the power grid, balancing renewable generation with storage and backup systems. Offsite renewables can also be accessed by data centres through long term power purchase agreements providing longer term price security and reducing reliance on fossil fuel power.
Hydrogen and alternative fuels such as green hydrogen, produced using surplus renewable electricity, is a longer duration energy storage solution. When stored and used in fuel cells, it provides a long-duration backup power source that complements battery storage over a longer time. Alternative fuels such as biofuels and renewable natural gas also offer lower-carbon backup options compared to traditional diesel and gas engine generators.
Not surprisingly, artificial intelligence and predictive analytics play an increasing role in managing energy supply and demand. AI can forecast demand, predict renewable energy availability, and optimise battery charging and discharging schedules. These algorithms are as often also used by energy aggregators and electricity traders. This dynamic energy management ensures maximum efficiency and uptime.
Backup storage and grid ancillary services
Energy storage and backup power assets can also participate in grid ancillary services. Ancillary services markets typically enable the grid network operator to help balance the grid in terms of energy supply and power quality by paying market participants for these services. By participating in these markets, the data centre owner can earn more diverse revenue streams and maximise the utilisation of the assets during their economic life. By offering flexibility to the grid, data centres can support wider energy system stability in a lower carbon intensity grid. Some of the key markets include frequency regulation and demand response where battery systems can provide frequency regulation services by injecting or absorbing power to maintain grid stability.
Similarly, demand response programmes allow data centres to adjust power consumption in response to grid conditions, reducing demand during peak demand periods. In certain markets, this allows the data centre to dramatically reduce its electricity bills. Peak shaving and load shifting, examples of demand response, is accomplished by discharging energy during peak demand which can help data centres reduce their reliance on expensive grid electricity (peak shaving) and ease grid congestion. This is a characteristic SLR sees in many of its markets which helps the battery economics and maximises the use of renewable energy.
A virtual power plant (VPP) may be formed from more than one data centre, with significant energy storage capacity. This has the benefit of transforming data centres from being an otherwise passive demand to an active grid participant; using the backup storage capacity to help grid operators balance the grid as we make the transition to net zero.
Data Centre KPIs
Data centres, as all businesses, rely on key performance indicators (KPIs) to measure and help manage their project lifecycle. Renewable energy solutions impact present data centre KPIs with new challenges and opportunities. Below are some data centre KPIs and how renewable energy influences these.
Five key actions
So, what are the take-home points to deliver data centre KPI success for this technology revolution?
- Plan early for renewable energy integration and backup power and low carbon forms of back-up power to reduce carbon emissions and improve carbon usage effectiveness (CUE).
- Optimise the grid connection assessing grid capacity, timing, capital costs and alignment to the target tier classification (grid dependency).
- Cooling strategies impact energy and water efficiency and affect operational costs (energy cost per kWh) as well as water usage effectiveness (WUE).
- Maximise use of back-up assets by engaging in grid balancing and ancillary services turning the data centre into a grid network asset, and wider contributor to net zero at a system level. (grid dependency, energy cost per kWh).
- Early exploration of lower carbon forms of back-up power alternatives rather than legacy diesel/ gas generator solutions, consider a mix of battery storage, green hydrogen and lower carbon intensity grid support that will improve carbon usage effectiveness (CUE).
How SLR supports data centre developers and operators
We support the sector by providing turnkey advisory solutions to the challenges of changing regulatory landscapes, carbon footprint reduction, energy supply and increasing energy efficient technologies, reducing water use, and the consumption of natural resources.
SLR is uniquely placed to provide solutions through the full life cycle of a data centre and our network of technical experts support clients in quickly bringing projects from concept to feasibility and planning to delivery. Our breadth of expertise and experience in this sector enables us to provide strategic advice and value which can unlock investment much more quickly and de-risk decision making.
- Site selection & feasibility studies
- Evaluating geographical risks (such as; seismic, flooding, extreme weather)
- Assessing grid reliability & energy supply
- Sustainability & ESG compliance
- Implementing energy-efficient cooling & heat recovery solutions
- Supporting carbon-neutral & renewable-powered data centre development
- Conducting lifecycle emissions & environmental impact assessments (EIA)
- Risk, resilience & uptime optimisation
- Designing for redundancy & disaster recovery planning
- Optimising power & water usage efficiency (PUE & WUE)
- Planning, permitting & regulatory compliance
- Successfully navigating planning & permitting regulations
The digital age is here to stay, and the need for resilient, energy-efficient, and sustainable data centres has never been greater. By taking proactive steps today, data centre operators can future proof their infrastructure while supporting a greener, more connected world.
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