How Does Siemens Approach Data Centre Sustainability?

The data centre industry is under pressure.

Increasing AI workloads and cloud demands are pushing computing power systems to the edge, forcing data centre operators to rethink their strategic approaches to infrastructure. 

For tech companies like Siemens, this moment presents both challenge and opportunity.

Ciaran Flanagan, Vice President and Global Head of Data Centre Solutions and Services at Siemens, sees this as a pivotal time for innovation. 

Speaking at the Datacloud Global Congress, Ciaran lays out how AI is reshaping power distribution and why collaboration will be key to meeting these demands.

“We’re in the most transformative and exciting period in data centre history – and demand has never been greater,” Ciaran says. 

But this growth comes with an urgent list of challenges: building capacity fast, managing rising costs and keeping pace with sustainability expectations — all while dealing with a shortage of digital skills.

The data centre sector is also confronting a technical squeeze.

AI workloads are pushing rack-level power densities beyond 100kW. Risk profiles shift as weight and space requirements evolve. Designers are now facing everything from rapid spikes in usage to changes in fire safety due to the intense thermal output of newer hardware.

Power infrastructure reimagined

Ciaran explains how advances in cloud computing and AI are forcing a full rethink of how data centres use power

“Specifically in the domain of AI, with power densities reaching unprecedented levels — often exceeding 100kW per rack — traditional distribution systems are having to be reimagined,” he says.

On top of this, grid delays are becoming a serious issue.

Connecting to the power network is taking longer than ever, creating a bottleneck for new data centre developments. Some projects are facing multi-megawatt or even gigawatt-scale delays — or outright rejections.

“Besides these new challenges within a data centre, ‘time to power’ has become a critical bottleneck in the industry, especially when deploying new facilities,” says Ciaran. 

“In response, leading operators are taking control of their destiny by either developing on-site generation capabilities with microgrids or forming strategic partnerships with utility providers.”

This approach is changing how data centres interact with the grid. Instead of simply consuming electricity, facilities are beginning to give back.

“At some point, data centres will become part of the grid ecosystem,” Ciaran adds. 

They will help balance energy loads and even offer storage, potentially avoiding the need for new fossil fuel power plants, he believes.

“So instead of a utility company having to build another gas fired power plant, perhaps, they can use excess energy storage capacity from a set of data centres that sit on the grid,” he continues.

“Data centres are becoming prosumers, by offering balancing services and demand-side response to help network operators better manage the grid with a greater penetration of renewable energy sources.

“So when we look at the grid and the power system in its entirety, we will see: everybody’s got a part to play.”

Digital tools driving sustainability

According to Ciaran, sustainability targets are also front and centre.

Data centre operators are under growing pressure to reduce their environmental impact, but the scale of AI workloads makes this a complicated task.

“We have to be realistic,” Ciaran admits. “Given the growth, it is difficult for data centres to be or become net zero at the moment. Everything we do as humans has an impact and data centres are no exception.”

But there is progress. The sector has led the way in adopting renewable power purchase agreements (PPAs) and many are now taking it a step further by generating renewable energy onsite through solar and wind installations.

Efficiency is improving too, thanks to digital technology.

Ciaran points to tools like Siemens’ Building X Suite, which uses AI to monitor systems and predict issues before they occur.

Within the suite, applications like Operations Manager help with preventative maintenance and fault detection, driving operational gains and reducing waste.

AI can also help optimise cooling systems inside the white space — the area of the data hall filled with active IT equipment — cutting energy use and improving overall performance.

These smart technologies are helping operators balance AI’s demands with sustainability goals.

“Somewhat ironically, AI technology is also part of the solution to making this a reality and can counter its own increasing power demands by helping data centre operators to achieve their sustainability targets,” Ciaran says.

As the industry adapts, Ciaran concludes that digitalisation will remain central to keeping the data flowing and emissions down.