The Importance of Data Centres and the Urgent Need to Reduce Their Carbon Emissions

In today’s digital age, data centres are the backbone of modern life. From powering cloud services and streaming platforms to supporting critical functions in healthcare, finance, and government, data centres enable the seamless connectivity and access to information that we rely on every day. However, while their importance continues to grow, so too does their environmental impact. As the demand for digital services increases, so does the energy consumption of data centres—raising urgent concerns about their carbon footprint and the need for sustainable solutions.

Why Are Data Centres So Important?

Data centres are at the heart of the digital economy, housing the servers, storage systems, and networking infrastructure that process and store vast amounts of data. Their critical roles include:

1. Driving Business Operations

Organisations of all sizes rely on data centres to host their applications, store critical data, and enable remote working. Without them, businesses would struggle to operate efficiently in today’s digital-first world.

2. Enabling Cloud Computing

Services such as Google Cloud, Microsoft Azure, and Amazon Web Services (AWS) are powered by data centres, offering scalable and flexible computing solutions that drive innovation and productivity across industries.

3. Supporting Emerging Technologies

Artificial intelligence (AI), machine learning, blockchain, and the Internet of Things (IoT) depend on data centres to process complex workloads and support real-time decision-making.

4. Ensuring Connectivity and Communication

Data centres facilitate seamless global communication by hosting social media platforms, email services, and video conferencing tools, which are indispensable for both personal and professional interactions.

5. Maintaining Critical Infrastructure

Essential sectors such as healthcare, finance, and public services rely on secure and highly available data centres to manage sensitive information, support digital healthcare solutions, and facilitate financial transactions.

The Environmental Challenge: Data Centres and Carbon Emissions

Despite their essential role in the digital economy, data centres are one of the largest consumers of electricity worldwide. It is estimated that data centres account for approximately 1% to 1.5% of global electricity consumption, with some projections suggesting this could rise within the next decade if no action is taken.

The energy-intensive nature of these facilities is driven by:

• High Power Demand – Running thousands of servers 24/7 requires vast amounts of electricity.

• Cooling Systems – Keeping servers at optimal temperatures to prevent overheating consumes significant energy, often relying on energy-intensive air conditioning.

• Redundancy Measures – To ensure uptime and reliability, data centres maintain backup power systems, which often depend on fossil fuels.

The carbon footprint of data centres is exacerbated by their reliance on energy sources that are still predominantly fossil-fuel-based in many regions. Without intervention, the growing digital economy could contribute substantially to global carbon emissions, undermining efforts to combat climate change.

Data Centres’ Water Consumption and Sustainable Solutions

Data centres are not only energy-intensive but also significant consumers of water, primarily for cooling purposes. According to estimates, a typical 1 MW data centre can consume up to 25 million litres of water per year, which is enough to supply over 200 UK homes, highlighting the strain these facilities can place on local water resources.

As global water scarcity becomes an increasing concern, reducing water consumption in data centres is critical for ensuring sustainable operations. Several solutions can help address this challenge, including the adoption of liquid cooling technologies, which use less water compared to traditional air-based cooling systems.

Another approach is implementing water recycling and reuse systems, allowing data centres to treat and recirculate water rather than relying on continuous freshwater intake. Utilising alternative cooling sources, such as direct air cooling or seawater cooling, can further reduce freshwater dependency while enhancing cooling efficiency.

Additionally, adopting AI-driven water management systems can help data centres monitor and optimise water usage in real-time, ensuring that resources are allocated efficiently without compromising performance. By integrating these solutions, data centres can significantly reduce their water footprint and contribute to more sustainable water management practices in an increasingly water-scarce world.

Personal Data Usage and Comparative Emissions

The average person in the UK used approximately 8.0 GB of mobile data per month in 2022, according to Ofcom’s Communications Market Report 2023.

While precise figures for carbon emissions per gigabyte of data are challenging to determine due to varying factors such as data centre efficiency and energy sources, it is acknowledged that digital activities contribute to carbon emissions. For instance, data centres’ emissions now match those of the aviation sector, highlighting the significant environmental impact of our increasing data consumption.

How We Can Reduce Data Centre Carbon Emissions

To address these environmental concerns, the industry must adopt sustainable practices and innovative technologies that can significantly reduce carbon emissions. Key strategies include:

1. Transitioning to Renewable Energy

Data centres must prioritise the use of renewable energy sources such as wind, solar, and hydroelectric power to reduce their reliance on fossil fuels. Many major tech companies, including Google and Microsoft, have already committed to powering their data centres with 100% renewable energy, setting a benchmark for the industry.

2. Improving Energy Efficiency

Enhancing the efficiency of data centre operations through energy-efficient hardware, optimised cooling systems, and smart energy management can significantly reduce power consumption. Innovations such as liquid cooling, AI-driven workload management, and high-efficiency power supplies can help drive efficiency gains.

3. Implementing Sustainable Design Practices

The construction and design of data centres should incorporate sustainability principles, including the use of energy-efficient building materials, modular designs, and location selection to take advantage of natural cooling sources such as colder climates.

4. Investing in Circular Economy Practices

Reducing waste by refurbishing, reusing, and recycling IT equipment can extend the lifespan of hardware and reduce the environmental impact of e-waste. Proper decommissioning of outdated equipment and recycling initiatives can further enhance sustainability efforts.

5. Adopting Carbon Offsetting Measures

While the primary focus should be on emission reduction, data centre operators can also invest in carbon offset programmes to compensate for their environmental impact. This can include funding reforestation projects or investing in carbon capture technologies.

6. Regulatory and Industry Collaboration

Governments and industry bodies must work together to set regulatory frameworks and sustainability standards that encourage data centres to adopt greener practices. Incentives such as tax benefits for using renewable energy and penalties for excessive emissions can accelerate progress.

Data centres are integral to our digital infrastructure, yet their substantial energy consumption necessitates the adoption of low-carbon technologies to mitigate environmental impacts. Below are notable case studies illustrating successful implementations of such technologies:

1. Energy Vault and NuCube Energy Partnership

Energy Vault, a renewable energy company, has partnered with NuCube Energy, a nuclear-power start-up, to power artificial intelligence data centres without generating carbon dioxide emissions. Energy Vault’s technology stores energy by hoisting and lowering heavy blocks to generate electricity, while NuCube develops small, modular microreactors called NuSun suitable for industrial applications. This collaboration allows excess reactor output to be stored for later use, helping to meet the high electricity demands of data centres without relying on fossil fuels.

2. Amazon’s Investment in Small Modular Reactors

Amazon has announced a $500 million investment in X-energy to develop small, modular nuclear reactors to power its data centres. This move is part of Amazon’s strategy to meet increasing energy demands and its Climate Pledge commitment to achieve net-zero carbon emissions by 2040. The investment will help create more than 5 gigawatts of new power projects across the US by 2039, starting with installations in Washington and Virginia.

3. Virgin Media O2’s Cooling Optimisation with EkkoSense

Virgin Media O2 collaborated with EkkoSense to implement AI-powered data centre optimisation software, resulting in annual cooling energy savings exceeding £1 million. This initiative led to an average 15% reduction in data centre cooling energy consumption, equating to savings of approximately 760 tonnes of carbon dioxide emissions per year.

4. NCAR-Wyoming Supercomputing Center’s Sustainable Design

The NCAR-Wyoming Supercomputing Center (NWSC) has achieved significant energy efficiency by utilising Wyoming’s climate for natural cooling during 96% of the year and sourcing at least 10% of its power from local wind energy. These measures contribute to the facility being 89% more efficient than a typical data centre, with 92% of its energy usage dedicated directly to powering supercomputers.

5. AWS’s Transition to Cloud-Based Infrastructure

A study commissioned by Amazon Web Services (AWS) and conducted by Accenture revealed that moving IT workloads from on-premises infrastructure to AWS data centres can significantly lower carbon emissions. The report suggests that AWS’s infrastructure is up to 4.1 times more energy-efficient than traditional on-premises solutions, highlighting the environmental benefits of cloud-based services.

These case studies demonstrate the diverse approaches data centre operators are adopting to reduce carbon emissions, from innovative energy storage solutions and investments in nuclear technology to optimising existing systems and leveraging natural environmental conditions. Such initiatives are crucial in aligning the rapid expansion of digital infrastructure with global sustainability goals.

Data Centres: Vulnerability to Climate Change

Data centres, despite their critical role in powering the digital economy, are increasingly vulnerable to the impacts of climate change. Rising global temperatures, extreme weather events, and changing environmental conditions pose significant risks to their operations and infrastructure.

Heatwaves can strain cooling systems, leading to higher energy consumption and potential equipment failures, while flooding from extreme rainfall and rising sea levels can damage facilities, disrupt connectivity, and result in costly downtime.

Additionally, water scarcity presents challenges for data centres that rely on water-based cooling systems, forcing them to seek alternative, more energy-intensive methods. Power outages caused by storms, wildfires, and other climate-related disruptions further threaten the continuous operation of data centres, highlighting the need for resilient designs and sustainable energy solutions. As climate change intensifies, the data centre industry must adapt by implementing robust disaster recovery plans, investing in renewable energy sources, and adopting climate-resilient infrastructure to ensure long-term operational stability and sustainability.

How IBM can Help

IBM Envizio can help data centres by providing real-time data collection and analytics to track energy consumption, identify inefficiencies, and optimise operations for sustainability. By offering a unified view of emissions data, Envizi enables data centre operators to make informed decisions that align with their carbon reduction goals. Additionally, it simplifies regulatory reporting and supports compliance with sustainability frameworks, ensuring transparency and accountability.

IBM Maximo and the Environmental Intelligence Suite further contribute by enabling predictive maintenance and resource optimisation. Maximo helps data centres manage critical assets efficiently, reducing energy waste and operational costs through AI-driven insights. Meanwhile, the Environmental Intelligence Suite leverages advanced analytics and weather forecasting to anticipate environmental risks and optimise energy consumption. Together, these solutions support a proactive approach to sustainability, helping data centres meet their ambitious carbon reduction targets while maintaining operational efficiency.

IBM is committed to improving the energy efficiency of its data centres through strategic initiatives focused on energy conservation, renewable energy procurement, and advanced cooling technologies. The company has implemented over 2,000 energy conservation projects since 2021, significantly reducing energy consumption and emissions. IBM aims to source 75% of its global electricity from renewable sources by 2025 and 90% by 2030, with 74% of its data centre electricity already coming from renewables in 2023. These efforts align with IBM’s broader sustainability goals, ensuring continuous operational efficiency improvements.

The Path Forward

Reducing the carbon emissions of data centres is no longer optional—it is an urgent necessity. As the world continues to embrace digital transformation, the industry must strike a balance between meeting the growing demand for data services and minimising environmental impact. By prioritising sustainability, investing in innovative solutions, and adopting best practices, data centres can continue to serve as the backbone of our digital world without compromising the health of our planet.

It is time for data centre operators, businesses, and policymakers to work together to create a more sustainable digital future. By embracing energy efficiency, renewable energy, and sustainable design, we can ensure that data centres remain an asset to society while playing a crucial role in achieving global carbon reduction targets.

The future is digital, but it must also be sustainable.