Sustainable data centres: Five strategies for success
Data centres are among the most resource-intensive assets in the built environment. They consume significant amounts of electricity and water, generate heat, and make a big contribution to greenhouse gas emissions.
That means there’s mounting pressure from the public, investors and regulators for data centre developers to improve the sustainability of data centres.
“In general, we need to find ways of building and operating buildings in a more sustainable way, and data centres are no exception,” says Tamas Mark, global head of real assets at IQ-EQ. “Because of the pressure we are under from all these different stakeholders – investors, the public, the regulators, even from the tenants and end users, I am positive we will turn this around to build a better and more environmentally friendly world.”
Kirsty Harrower, a partner on the real estate team at Norton Rose Fulbright, who has been working on data centre projects for 15 years, points out that some of the criticism levelled at data centres over their environmental performance can be unfair. “Operators and developers have been looking at sustainability issues for a long time – by addressing this through clever data centre design and measuring their power usage effectiveness and water usage, for example – but they’ve largely been self-regulating. Last year, the government recognised data centres as Critical National Infrastructure and more regulations are now being introduced globally. I think the industry has already been complying with and exceeding the requirements in many instances.”
Her colleague, Caroline May, Norton Rose Fulbright head of sustainability, adds: “With increasing demand and the rapid adoption of AI, energy efficiency and resource management for data centres will be critical aids to improving sustainability performance. Minimising electronic waste and the use of critical materials will be key, as will the need to adopt data storage and compression techniques to minimise load.
“Where that cannot be avoided, carbon offsets may also be needed. The law is still evolving and assessing how to best regulate in this area but recognising data centres constitute critical infrastructure, present and future legal frameworks need to be adapted which encourage investment in sustainable infrastructure”.
Norton Rose Fulbright and IQ-EQ, along with BuildingMinds and ULI, are responsible for a new in-depth whitepaper on data centre sustainability. It outlines various approaches data centre developers can take to reduce their impact on the environment. We’ve rounded up some of the key strategies for success.
1. Become energy-efficient and use renewable power.
The report notes that hyperscalers like Amazon, Microsoft, Meta and Google are among the leading buyers of power purchase agreements, contracting nearly 50GW of renewable energy capacity in the process.
As well as buying renewable energy, data centres can take steps to analyse their energy efficiency and make improvements. A common efficiency measure is power usage effectiveness (PUE), which measures the amount of energy used for computational purpose in relation to a data centre's total energy consumption. An ideal PUE value is close to one, meaning almost all energy used is used for a data centre's computation, as opposed to power conversion or cooling.
Another useful measure is the carbon usage effectiveness metric, which quantifies the data centre carbon footprint in relation to a facility's total energy consumption, considering the emissions from electricity used from the grid, as well as any on-site renewable generation.
2. Reduce water consumption.
The report notes that a mid-sized data centre uses approximately 1.14 million litres of water each day for cooling purposes. This is primarily due to the need to dissipate heat generated by IT equipment. Some data centre operators have sought to mitigate water usage by investing in closed-loop cooling methods. Others such as AWS and Google have focused on investing in water replenishment projects to ensure local communities are not affected by a lack of available potable water.
AWS has also introduced purified wastewater cooling systems across 20 of its sites to address the lack of available potable water for managing temperatures in server rooms. By using non-potable water such as reclaimed wastewater, the operator is working towards being ‘water positive’ by 2030, the report says.
In doing so, Tamas Mark says that Amazon will use more non-potable water than potable water in its operations. “We are going to hear more and more about how to become water positive from data centre developers,” he believes.
3. Recover and reuse waste heat.
The report suggests that by capturing and reusing the excess heat generated by data centre operations, data centres can become more sustainable, giving facilities the opportunity to reduce their overall energy consumption and carbon emissions. Implementing waste heat recovery systems, such as heat exchangers or absorption chillers, can help data centres use excess heat for other purposes, such as district heating or cooling.
Harrower notes that, “the government could add value by giving the industry a steer on a national strategy for heat exchange. At the moment in the UK, it is left up to each individual data centre developer to try to develop a waste heat solution, but if there’s no district heat network to be able to offtake the waste heat, it would be cost prohibitive for an operator of a specific site to develop that infrastructure.”
There are examples in Europe of the government intervening to encourage data centres to reuse energy. In Germany, the Energy Efficiency Act dictates that new data centres that start operation as of 1 July 2026 must use a minimum of 10% reused energy (the target increases to 15% as of July 2027, and 20% as of July 2028). Operators of new and existing data centres are also required to avoid or reduce waste heat.
4. Integrate sustainable design.
Sustainable design strategies include integrating green infrastructure, optimising renewable energy, and enhancing sustainability in data centre construction by using low-carbon steel and concrete, and recycled plastics. Green roofs and living walls may be integrated to help improve air quality and enhance biodiversity, providing natural insulation and cooling opportunities, which in turn reduce energy consumption. Green walls also help sequester carbon dioxide from the atmosphere, providing data centres with an opportunity to offset carbon emissions generated elsewhere, such as in the use of refrigerants in cooling.
Opportunities also lie in rainwater harvesting solutions to increase sustainability and water resilience, by using passive, non-potable water sources, says the report. Rainwater can be stored on-site to ensure data centres conserve freshwater resources, promoting resilience in urban areas by reducing reliance on potable sources.
5. Obtain sustainability certifications.
Data centres often comply with various International Organization for Standardization (ISO) standards, such as ISO 14000 for environmental management. Various additional certifications like LEED and BREEAM and other data centre sustainability certifications can play a significant role in driving sustainable practices in the data centre industry, says the report. By adhering to these certifications, data centres can improve their environmental performance, reduce operational risks, and enhance their reputation.
Caroline May also notes that many of these standards are voluntary and reporting obligations and data collation techniques may vary. “As the sector globalises, there will be increasing demand for a level playing field for reporting and governance structures, which have emerged in other sectors, and can be adapted to address data centre reporting and governance requirements”.
Mark of IQ-EQ suggests that investors will not be prepared to put money into data centres that do not meet these requirements in the future. “Investors will simply not be able to put money into funds which are investing in data centres without the operators obtaining these certifications. This will be a condition for investors to come in and put their money into the structure. That is where we are heading.”
Overall, there is work to do if data centres are to improve their sustainability credentials. “To be honest, right now, the public views data centres as environmental liabilities,” says Mark.
“This is what we need to change.”
That means there’s mounting pressure from the public, investors and regulators for data centre developers to improve the sustainability of data centres.
“In general, we need to find ways of building and operating buildings in a more sustainable way, and data centres are no exception,” says Tamas Mark, global head of real assets at IQ-EQ. “Because of the pressure we are under from all these different stakeholders – investors, the public, the regulators, even from the tenants and end users, I am positive we will turn this around to build a better and more environmentally friendly world.”
Kirsty Harrower, a partner on the real estate team at Norton Rose Fulbright, who has been working on data centre projects for 15 years, points out that some of the criticism levelled at data centres over their environmental performance can be unfair. “Operators and developers have been looking at sustainability issues for a long time – by addressing this through clever data centre design and measuring their power usage effectiveness and water usage, for example – but they’ve largely been self-regulating. Last year, the government recognised data centres as Critical National Infrastructure and more regulations are now being introduced globally. I think the industry has already been complying with and exceeding the requirements in many instances.”
Her colleague, Caroline May, Norton Rose Fulbright head of sustainability, adds: “With increasing demand and the rapid adoption of AI, energy efficiency and resource management for data centres will be critical aids to improving sustainability performance. Minimising electronic waste and the use of critical materials will be key, as will the need to adopt data storage and compression techniques to minimise load.
“Where that cannot be avoided, carbon offsets may also be needed. The law is still evolving and assessing how to best regulate in this area but recognising data centres constitute critical infrastructure, present and future legal frameworks need to be adapted which encourage investment in sustainable infrastructure”.
Norton Rose Fulbright and IQ-EQ, along with BuildingMinds and ULI, are responsible for a new in-depth whitepaper on data centre sustainability. It outlines various approaches data centre developers can take to reduce their impact on the environment. We’ve rounded up some of the key strategies for success.
1. Become energy-efficient and use renewable power.
The report notes that hyperscalers like Amazon, Microsoft, Meta and Google are among the leading buyers of power purchase agreements, contracting nearly 50GW of renewable energy capacity in the process.
As well as buying renewable energy, data centres can take steps to analyse their energy efficiency and make improvements. A common efficiency measure is power usage effectiveness (PUE), which measures the amount of energy used for computational purpose in relation to a data centre's total energy consumption. An ideal PUE value is close to one, meaning almost all energy used is used for a data centre's computation, as opposed to power conversion or cooling.
Another useful measure is the carbon usage effectiveness metric, which quantifies the data centre carbon footprint in relation to a facility's total energy consumption, considering the emissions from electricity used from the grid, as well as any on-site renewable generation.
2. Reduce water consumption.
The report notes that a mid-sized data centre uses approximately 1.14 million litres of water each day for cooling purposes. This is primarily due to the need to dissipate heat generated by IT equipment. Some data centre operators have sought to mitigate water usage by investing in closed-loop cooling methods. Others such as AWS and Google have focused on investing in water replenishment projects to ensure local communities are not affected by a lack of available potable water.
AWS has also introduced purified wastewater cooling systems across 20 of its sites to address the lack of available potable water for managing temperatures in server rooms. By using non-potable water such as reclaimed wastewater, the operator is working towards being ‘water positive’ by 2030, the report says.
In doing so, Tamas Mark says that Amazon will use more non-potable water than potable water in its operations. “We are going to hear more and more about how to become water positive from data centre developers,” he believes.
3. Recover and reuse waste heat.
The report suggests that by capturing and reusing the excess heat generated by data centre operations, data centres can become more sustainable, giving facilities the opportunity to reduce their overall energy consumption and carbon emissions. Implementing waste heat recovery systems, such as heat exchangers or absorption chillers, can help data centres use excess heat for other purposes, such as district heating or cooling.
Harrower notes that, “the government could add value by giving the industry a steer on a national strategy for heat exchange. At the moment in the UK, it is left up to each individual data centre developer to try to develop a waste heat solution, but if there’s no district heat network to be able to offtake the waste heat, it would be cost prohibitive for an operator of a specific site to develop that infrastructure.”
There are examples in Europe of the government intervening to encourage data centres to reuse energy. In Germany, the Energy Efficiency Act dictates that new data centres that start operation as of 1 July 2026 must use a minimum of 10% reused energy (the target increases to 15% as of July 2027, and 20% as of July 2028). Operators of new and existing data centres are also required to avoid or reduce waste heat.
4. Integrate sustainable design.
Sustainable design strategies include integrating green infrastructure, optimising renewable energy, and enhancing sustainability in data centre construction by using low-carbon steel and concrete, and recycled plastics. Green roofs and living walls may be integrated to help improve air quality and enhance biodiversity, providing natural insulation and cooling opportunities, which in turn reduce energy consumption. Green walls also help sequester carbon dioxide from the atmosphere, providing data centres with an opportunity to offset carbon emissions generated elsewhere, such as in the use of refrigerants in cooling.
Opportunities also lie in rainwater harvesting solutions to increase sustainability and water resilience, by using passive, non-potable water sources, says the report. Rainwater can be stored on-site to ensure data centres conserve freshwater resources, promoting resilience in urban areas by reducing reliance on potable sources.
5. Obtain sustainability certifications.
Data centres often comply with various International Organization for Standardization (ISO) standards, such as ISO 14000 for environmental management. Various additional certifications like LEED and BREEAM and other data centre sustainability certifications can play a significant role in driving sustainable practices in the data centre industry, says the report. By adhering to these certifications, data centres can improve their environmental performance, reduce operational risks, and enhance their reputation.
Caroline May also notes that many of these standards are voluntary and reporting obligations and data collation techniques may vary. “As the sector globalises, there will be increasing demand for a level playing field for reporting and governance structures, which have emerged in other sectors, and can be adapted to address data centre reporting and governance requirements”.
Mark of IQ-EQ suggests that investors will not be prepared to put money into data centres that do not meet these requirements in the future. “Investors will simply not be able to put money into funds which are investing in data centres without the operators obtaining these certifications. This will be a condition for investors to come in and put their money into the structure. That is where we are heading.”
Overall, there is work to do if data centres are to improve their sustainability credentials. “To be honest, right now, the public views data centres as environmental liabilities,” says Mark.
“This is what we need to change.”
