How Data Centers Contribute to the Energy Transition
Frankfurt, August 20, 2024. The advent of digitalization, Industry 4.0, and the Internet of Things has profoundly changed the world and our daily lives. This has been accompanied by a steady, enormous growth in the amount of information and data to be processed. This development also brought data centers into focus for the first time: They form the heart of the infrastructure that directs the huge data streams. And they consume a lot of energy. But as we know, energy has become expensive and high consumption is not sustainable: Are data centers therefore paving the way for digitalization while standing in the way of the energy transition?
Jerome Evans, founder and CEO of data center operator firstcolo, points to the industry’s development: “It can hardly be disputed that data centers are an important factor in the energy transition. Most areas of our lives now take place at least partially in the digital world – whether it’s video conferences in everyday work life, banking via apps, networking with friends on social media, or streaming series. Accordingly, the flow of information is large and so is the use of data centers.”
Within ten years, IT connection capacity has almost doubled, which in turn has led to higher electricity demand: In 2022, this was just under 18 billion kilowatt hours, compared to about 7 billion less in 2012 [Source: Data Centers in Germany: Current Market Developments – Update 2023, Bitkom]. “Data centers have made great technological strides, and efficiency has also improved significantly. However, the amount of data will continue to increase in the future, leading to greater energy demand from data centers”, says Evans. So what needs to be done in the future?
Even Small Efficiency Gains Have an Impact
The storing, processing, and forwarding of huge amounts of data takes place in data centers. The ongoing shift towards an increasingly digital world with a multitude of new business models puts the operators of data centers in a position of responsibility: They must continue to drive the energy efficiency of their data centers – and thus make their contribution to the energy transition.
“Accordingly, there is a constant need for new technology and efficient processes that ensure exactly this. In a nutshell, the formula is to increase performance while simultaneously reducing the need for electricity. Given the percentage of energy consumption attributable to data centers – just under three percent of the total amount in Germany – this is the only way the energy transition can succeed”, the expert points out.
“Thus, even small efficiency gains have large, positive effects. Renewable energies also play a crucial role.” According to plans by the German government, from 2024 onwards, data centers are to be operated with 50 percent green electricity, and from 2027 onwards, even 100 percent. “The first steps have already been taken, now it’s a matter of further developing and implementing”, says Evans.
Standards Reveal Potential
Today, regulations or standards apply that underlie the construction of new data centers: The EU directive on energy efficiency, for example, refers to EN 50600 or ISO 50001. In addition, the European Commission’s Shaping Europe’s Digital Future
document stipulates that data centers must be CO2-neutral by 2030. Such specifications open up great opportunities that might otherwise have remained hidden. In this way, data centers work much more efficiently. They make the use of innovative technologies possible and thus lay the foundation for a sustainable future
, says Evans.
“To implement this, we must start with the planning stage. For example, cooling accounts for almost half of the data center’s total energy consumption. This makes it an excellent starting point for achieving strong results with good development.” The industry faces many challenges – but also at least as many opportunities.
