Shell Energy and Kao Data Renew UK AI Power Deal

Shell Energy UK Limited has formally signed an extended renewable electricity supply agreement with Kao Data. 

The renewed contract ensures the continued provision of sustainable power for data centres specifically engineered to support AI and advanced computing workloads across the UK. This agreement highlights a mutual focus between the energy supplier and the data centre operator on supporting the sustainable expansion of the broader digital economy.

The relationship between the two organisations traces back to 2022. Since then, Shell Energy has provided Kao Data with approximately 140GWh of electricity annually. This substantial energy volume is entirely matched with power generation originating from renewable assets located within the UK.

The ongoing agreement secures a consistent and verifiable power pipeline for a specialist developer dealing with the intensive computational demands of modern digital infrastructure.

Harnessing offshore wind energy

Beginning in 2025, the power supply arrangement has incorporated initial electricity output from Dogger Bank. 

Currently under construction off the coast of the UK, Dogger Bank ranks as one of the largest offshore wind farms globally. Shell Energy Europe holds an agreement to offtake approximately 20% of the total energy generated by this massive North Sea infrastructure project.

“At Kao Data, sustainability is embedded in everything we do and developing strategic relationships remains critical to help us achieve our goals,” says James Lewis, Investment Director at Kao Data.

“Our collaboration with Shell Energy has been instrumental in shaping our long-term energy management and decarbonisation strategy. Extending this relationship enables our customers’ electricity demand to be matched with certified renewable generation from UK-based sources, reinforcing our commitment to become carbon-neutral by 2030.”

Infrastructure for advanced computing

Kao Data designs its facilities to handle the specific physical and electrical requirements of AI and HPC. These advanced technological applications generate significant heat – a byproduct of intensive processing – and require highly specialised climate management. To address this physical challenge, the operator utilises advanced cooling technologies directly within its server halls.

This mechanical design includes the deployment of direct-to-chip liquid cooling systems. These systems manage hardware temperatures directly at the processor level, providing an alternative to facilities relying entirely on traditional ambient air cooling. 

Every unit of electricity consumed by these intensive computing processes and the associated mechanical cooling systems is matched directly with renewable generation originating within the UK.

Transitioning backup power systems

Beyond the primary electricity procurement strategy, the operator has overhauled its emergency power infrastructure. 

Kao Data became the first data centre company in Europe to transition its critical backup generators away from conventional fossil fuels. The developer now runs these emergency power systems entirely on hydrogenated vegetable oil fuel.

Using hydrogenated vegetable oil reduces lifecycle carbon emissions by up to 90% when compared to the traditional diesel typically deployed for data centre emergency power. 

This significant operational shift away from fossil fuels aligns strictly with the 2030 carbon-neutral target outlined by the company.

Verifying sustainable energy matching

The mechanism for ensuring the environmental integrity of the power supply relies on rigorous certification. 

Electricity provided under the extended agreement is backed by asset-specific renewable certificates. This guarantees that the energy consumed by the data centre racks corresponds accurately to power generated by verified UK renewable installations.

“Shell Energy is delighted to strengthen our collaboration with Kao Data,” says Greg Kavanagh, Head of Industrial & Commercial Sales at Shell Energy.

“Our long-standing relationship reflects the alignment between our teams and a shared focus on innovation and sustainability. 

“By supplying electricity backed by asset-specific renewable certificates, we’re supporting Kao Data’s pioneering AI infrastructure and its broader efforts to reduce emissions and progress towards net-zero emissions. 

“Together, we’re helping to set a benchmark for how energy and technology companies can enable a low-carbon digital future.”