Is HVO Fuel Actually Taking Off in the Data Centre Industry?
HVO is gaining popularity as a more sustainable alternative to traditional fossil fuels.
It is typically made from vegetable oils or animal fats through a hydrotreating process that results in cleaner burning and greenhouse gas emission reduction by up to 90%, compared to traditional diesel fuels.
The fuel is quickly becoming a larger conversation within the data centre industry, with operators like AWS having already adopted HVO for their backup generation units in Europe.
But is HVO actually taking off?
In an industry where sustainability is becoming a much larger conversation, we take a look at those in the industry already engaging with HVO – and if their efforts are enough.
How is HVO actually being used?
HVO, or Hydrotreated Vegetable Oil, is a renewable diesel fuel that can be stored for up to 10 years and is fully miscible with fossil diesel. It has similar chemical and physical properties to diesel fuel, but its low-carbon content makes it an attractive alternative for enterprises seeking to lower their emissions.
Typically, it has been used in the transportation industry to power fleets more sustainably, but now the data centre sector is looking to invest.
Data centre companies like AVK have already delivered these solutions, enabling data centres to integrate renewable energy sources like solar and wind while balancing reliability through HVO-powered generators or other sustainable fuels.
The company has spent the last two years transitioning away from using diesel to HVO for its standby power solutions. This required extensive collaboration with clients and suppliers to ensure a reliable HVO supply.
Company CEO Ben Pritchard told Data Centre Magazine in December 2024: “Introducing microgrids into data centres and delivering them successfully allows us to turbocharge an initiative that was a success in the UK — but where they were building 10MW microgrids, we’re building more than 100MW.
“So we talk about that sustainable journey — we’ve got a microgrid now that can run on future fuels, but we’re also thinking about how we best utilise that microgrid in the future to start really solving the energy issues that we see.”
Likewise, Verne in April 2025 announced plans to use HVO to power backup generators at its London data centre in Farringdon. The company says this switch will considerably cut the net CO2 emissions from its generators, meaning it will no longer need a greenhouse gas permit.
The company said at the time: “Verne recognises that even small adjustments across its data centres can lead to meaningful sustainability gains. The company continues to explore every opportunity to reduce environmental impact across its infrastructure.”
Is HVO actually a greener solution?
As HVO becomes an attractive proposition in the data centre industry, there are concerns over just how ‘green’ this alternative fuel is.
A study in 2022 by the International Council on Clean Transportation found that scaling up renewable diesel capacity in the US would quickly exhaust the available supply of waste and residual oils and instead rely on domestic and imported soy oil and could lead to the expansion of palm oil cultivation in Southeast Asia.
Mike Nakrani, CEO of Vev (the e-fleet solutions provider backed by Vitol), says: “The reality is that sustainable HVO supply is severely limited, despite its marketing as an eco-friendly fuel.
“The more fleets adopt HVO, the worse the environmental impact becomes as demand outstrips genuine waste oil availability and suppliers turn to environmentally harmful virgin palm oil instead, while still marketing the fuel as sustainable.”
He suggests that, while it might feel sustainable to use HVO, businesses are not actually saving on emissions.
When it comes to data centres, HVO has been touted as a clear solution. However, it’s clear that operators do need to conduct thorough research into if they can use this alternative fuel to power their data centres in a way that is truly sustainable.
To read the full article in the magazine, click HERE.