True’s Jonathan Anstey on Data Centres & Renewable Energy

Data centres are the foundation of our digital world, but their energy consumption is a cause for serious environmental concern. Yet data centres have become a driving force behind innovations in renewable technology.

In this interview, Jonathan Anstey, Head of Sustainability at True, discusses the various strategies theat data centres can employ to become more eco-friendly. 

What is the environmental impact of data centres? 

“There is no doubt that data centres are energy-intensive and naturally this raises environmental concerns. But the reality is that their existence is necessary – after all they play a vital role in our modern world – which has been a catalyst for innovation in renewable technology. 

“The adage, necessity is the mother of invention, applies here; for the world’s significant data processing requirements and concurrent push towards net zero have meant that sustainability for data centre operations has become a must. We would likely be further behind in the evolution of renewable technology without data centres – their importance has hastened the need for innovation in what is a world looking to improve its green credentials. Such innovation within the industry includes heat reuse initiatives, liquid immersion cooling, and the rise of Li-ion batteries. 

“Now it is vital that we strengthen the market for renewable energy generation.”

Why must data centres focus on sustainability and what are some of the ways in which they can become more sustainable? 

“The customers that use data centres include big tech giants and it is becoming increasingly important for large corporates to demonstrate good environmental credentials. They must be seen as operating at the forefront of environmentalism. Now more than ever – especially with the advent of new legislation such as the Corporate Sustainability Reporting Directive (CSRD) – corporates are interrogating the sustainability record of their supply chain. Thus, if data centres want to secure new business and significant contracts, they must be able to showcase sustainable operations. 

“There is more legislation coming into play that demands data centres be greener with their energy consumption. For example, in Germany, last year’s Energy Efficiency Act requires data centres to meet targets for power usage effectiveness (PUE) and it will set a quota for the reuse of waste heat from facilities. 

Data centres looking to become more sustainable should continue to secure new long-term power purchase agreements (PPAs). They are a way for data centre operators to ensure the energy demands of their operations are covered by an equivalent amount of renewable-generated energy. In its simplest form, a PPA is a contract to purchase electricity direct from a renewable asset and is therefore a robust way for large energy consumers to meet their sustainability goals by receiving energy attribute certificates proving their power demand is met by renewable energy projects.

“The specifics of a PPA will vary depending on the project, location, and the regulations of the local energy market. Essentially, a company forms an agreement with an energy provider to invest in a renewable energy project, such as a wind or solar farm. Subsequently, the company procures the output of that facility to cover some or all of the energy requirements of one or more data centres, once the project is live. PPAs should absolutely be part of data centres’ net zero strategies. 

It is also worth pointing out that it is first important for data centres to look to reduce their overall energy usage. 

“An energy audit is a good place to start. Cooling is the number one source of energy consumption for data centres. So, operators might want to think about siting data centres in cooler places, such as Scandinavia, or even site them underwater. Data centres should also look to limit waste heat – for example, it could be directed to warm up council swimming pools, district heating networks, or housing estates.”

What are some of the challenges surrounding sustainability?

“Some of the challenges facing data centres include the inevitable ramp-up in data that the world requires. There will always be a demand for more and more. This means data centres will have to work even harder to deliver on data supply. 

“Balancing energy procurement during operational ramp-up periods poses a strategic challenge. Expert guidance in energy procurement is crucial to avoid under or overcommitting during these phases, ensuring efficient and sustainable operations.”

What do you envision the future looks like in the next 12-18 months?

“The next 12-18 months in the data centre industry might bring an issue with capacity. There is a question over how much energy is actually available and whether infrastructure can cope with increased demand – i.e. pressure on the grid. In central London, for example, our projected modelling shows that there is little spare energy capacity to meet future demand. Given that more and more data is needed, demand is only going up and that adds further pressure on grid capacity. Part of the solution to this lies in innovation with energy storage, and more onsite energy generation. The UK is a leader when it comes to offshore wind too – so the industry needs to take better advantage of this.”

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