The start of a new year is traditionally a time for setting new goals, but when it comes to business sustainability and reducing the impact of data centers on the environment, we need to move away from simply goal setting. We need to go further. Now is the time to firmly embed sustainability into every area of an organization, not simply something to aspire to.

During COP26 the spotlight was firmly shone on the net zero agenda. The importance of protecting our climate from further irreversible damage was highlighted to a global audience and the message to reach net zero was clear. While great strides were made during the conference, and widespread media attention raised the profile of sustainability, as we stand today, it wasn’t enough. 

Zero guidance

What was lacking was the detailed guidance for businesses and what is needed to make meaningful change today. The government now has a crucial role to engage businesses and individuals across the UK to ensure that everyone is working towards net zero. 

But, it’s vitally important that businesses don’t wait for government guidance before they take action to address their own impact on the environment. Each data center should be aiming for net zero now, no matter how far away their net zero target may seem, because there’s no excuse for organizations not to make net zero a priority. 

While each data center has its varying complexities, net zero is possible. We already know there is impetus behind reaching this target, as at the start of 2021, 25 operators and 17 associations in the data center industry pledged to be net zero by 2030, when they signed up to The European Data center Association’s Climate Neutral Data center Pact (CNDCP).  In doing so, they made a commitment to ensure that three-quarters of the energy used by their data center facilities must be renewable or carbon-free by 2025, and by 2030, completely carbon-free. The dichotomy is that data center electricity use is likely to increase around 15 times by 2030.

Getting to net zero is therefore the key to not only ensuring sustainability for data centers but operational efficiency and business success. Today, many operators have already done what they can to improve energy efficiency, such as moving to using more efficient servers. So, what else can be done? 

There’s no doubt that the road to net zero isn’t without its twists and turns for data centers. A better analogy would be to describe it as a puzzle with a number of pieces all of which need to come together. It is therefore only through a holistic approach that operators can reach net zero. This will be a combination of the right energy procurement, including corporate power purchase agreements (CPPAs) to deliver long-term price stability, on-site renewable energy generation and general efficiency measures. 

New builds have it easy

Net zero needs to be handled differently depending on the operator’s resources and segmented to address both existing stock and new builds. It goes without saying that new-build sites will have more efficient operations, but as the sector booms this doesn’t mean older sites will necessarily become obsolete. While new-build data centers can have highly efficient operations, such as machine learning to optimise cooling built into them, older builds will need to work harder. 

Importantly, data centers should also look beyond their own operations and not overlook Scope 3 emissions. Operators need to look at their supply chains and what organizations they work with are doing to get to net zero. If this analysis isn’t already in place, then operators should start having conversations with their supply chains now. 

While the environment is the driving force behind net zero, it can’t be ignored that operating costs will benefit. As we are experiencing volatility in the energy market because of supply and demand issues in the UK and Europe, sustainability has never made more sense economically. Reducing consumption and on-site generation will help to lower bills. In addition, procurement is key. Data center operators can look at purchasing their volume needs flexibly and through longer-term contracts, in order to protect themselves against significant price swings. Forward planning is also key and having a robust risk management strategy in place. Not only could operators benefit from price stability, but CPPAs are the bedrock of ESG considerations. CPPAs can be complex and there is a long lead time, so it is important for data centers to take swift action in exploring this option. 

So, the time to act is now. While we all understand the complexities faced by data centers, net zero needs to be a priority. Not only for the climate but to support the bottom line with the rising cost of utilities. Net zero isn’t a goal, it’s a clear corporate strategy, with objectives, prioritized actions and clear measurement. We must work together to make change happen today.