This month’s news that Vertiv has unveiled the Vertiv EnerSav initiative reinforces the case for future data centres being built to ecologically sustainable standards.
When a specialist global operator like Vertiv gets it, the debate doesn’t hedge bets.
Now, surely, it’s only a matter of how.
The Vertiv service, available throughout Asia, Australia and New Zealand, is about data centre optimisation – essentially identifying cost saving opportunities by reducing energy consumption without the need for a major infrastructure overhaul.
But the mindset is moving towards building new centres to be defined by their ecological sustainability.
As one of the world’s largest data centre hubs, Singapore, for instance, has been warned by one of its biggest business players that it could lose future demand to regional economies unless it expands its capacity for new centres in an environmentally friendly way.
Singapore ended a three-year pause on new data centre projects last year and called for applications to build new facilities with higher green standards.
Despite its limited land size, Singapore ranks among the most desirable data centre locations, tying with Silicon Valley for second place globally and ranking first in Asia, according to a study by Cushman & Wakefield, a real estate services company.
Singapore’s challenges prove particularly acute where year-round high temperatures and humidity require more energy to cool the stacks of servers. With over 70 facilities, data centres consume more than 7% of the city-state’s total electricity.
Among the conditions for new applications, total allocated capacity is capped at 60 MW per year, which is much lower than the industry’s demand.
And Singapore still accounts for some 60% of South-East Asia’s total data centre capacity.
The global asset manager, Keppel, headquartered in Singapore, wants authorities to raise the capacity to at least 1 GW in order to meet growing demand from big tech.
Keppel’s key proposal is to build a data centre development called Datapark+, which seeks to use spare shipping docks and operate on a green energy grid using hydrogen, which burns without emitting carbon dioxide.
Keppel claims the park will have more data centre capacity than has been constructed in Singapore over the past decade.
In this, Keppel sets a strong example for the way forward.
The corporation is also developing new data centres with higher energy efficiency and planning to export them to other major data centre hubs. One example is the floating data centre that would both save energy and get past Singapore’s geographical constraints.
Keppel partnered with Australia’s transport and logistics provider, Toll Group, in 2020 to study the feasibility of the floating data centre. The facility will be constructed on an offshore platform and use sea water to cool servers, cutting energy needs.
And approval has been acquired for the construction of a floating data centre which, now at the final design stage, will also be part of the Datapark+ project in the future.
Pushing its message wider, Keppel is looking over the next two years at other cities for its data centre business. India, Japan and South Korea are leading candidates with strong demand from big tech.
Arun Shenoy, CMO & SVP Sales, Serverfarm
Today, all data centre developments are viewed through the lens of sustainability.
But whether future data centre developments should be defined by ecological considerations is a more complex question than it might first appear.
From the bottom up a net zero data centre spans design and build, renewable energy resources, heat capture and reuse.
From the top-down sustainable IT within spans everything from software development to processor performance per watt to server refresh cycles.
Add utilisation rates and whole of life asset management from sourcing to disposal and clearly 100% measurement of sustainability remains an inexact science.
The sustainability of a building development for large enterprises, commercial data centre providers and cloud companies through GHG emissions reduction should start with an evaluation of the design and construction.
Before the developers, financiers, architects, designers, engineers, construction leads and contractors begin any project each stakeholder is being asked to consider the environmental impact of their decisions and actions. The accurate measurement of Scope 1, 2 and 3 emissions of everything from steel and concrete to machinery to the building process itself is challenging.
It must also be considered that a new data centre is not always a greenfield project. Smart developers avoid additional embodied carbon costs by making use of modernisation and upgrades to existing buildings, including those that are not currently data centres as the latest power and cooling infrastructure provides best ratings for GHG carbon emissions.
And once a building is completed and kitted out with mechanical and electrical equipment (M+E) the sustainability of its operation over a 20-year asset life will become the focus.
By now CIOs will have heard of the PUE, CUE and WUE metrics. Respectively Power, Carbon and Water Usage Effectiveness metrics.
The most established sustainability metric for data centre power is PUE – Power Usage Effectiveness – which is a measure of the power entering the building divided by the electricity reaching the IT equipment to do ‘useful work’.
In PUE terms the perfect number is 1. However, this is not a measure of sustainability.
The short answer to the opening question is ‘yes’ data centres should be defined by sustainability.
It will require deeper collaboration between all stakeholders. Defining sustainability requires IT and M+E professionals working in harmony using common data, goals and incentives across the stack.
Jim Steed, Managing Director, Nutanix A/NZ
As data continues to grow exponentially, so too does the demand for data centres and their associated infrastructure.
While data centres are critical to the digital-first future we live in, they are traditionally power-hungry, consuming enormous amounts of energy.
While this poses an ecological challenge, they also consume large amounts of water, generate significant amounts of e-waste and have a large carbon footprint when the manufacturing and disposal of electronic components required to operate them are taken into account.
As a result, many enterprises are keenly aware of the environmental footprint of their IT infrastructure. Corporate sustainability initiatives are increasingly looking to drive efficiency, sustainability and eco-friendly practices into their tech operations and data centre operators will find their services being assessed on these environmental criteria.
With this in mind, not only is ecological sustainability in the data centre space the right thing to do for the environment, but it also makes sense from a business perspective.
Consumers and regulators alike are increasingly demanding more sustainable solutions and businesses that prioritise sustainability can potentially gain a competitive edge while also contributing positively to the planet.
In fact, according to Nutanix’s fifth annual Enterprise Cloud Index Report, all Australian respondents (100%) and an overwhelming 95% of IT decision-makers in Singapore agreed that sustainability is more important to their organisation today than it was a year ago. This demonstrates a growing understanding of the urgent need to reconcile the need to implement digital technologies with responsible stewardship of the environment.
Sustainability is now front-of-mind for the vast majority of business leaders – so it must also be a key consideration in any future data centre development.
Sam Lim, Sales Director, Outdoor Wireless, North Asia and SEA & OEM Lead, Asia Pacific
Research suggests that data centres are responsible for up to 5% of global greenhouse gas emissions. Additionally, the International Telecom Union (ITU) estimates that the ICT industry generates approximately 2% of global emissions and calls for organisations to reach net-zero greenhouse gas (GHG) emissions by 2040.
For tomorrow’s data centre environments, whether a small- to mid-sized multi-tenant data centre or hyperscalers, the intense pressure of network demand and operational expenses, particularly energy costs, will determine future viability – especially with sustainability and climate action regulations being implemented across a wide range of industries.
With the data centre market projected to grow significantly, reaching US$53.58 billion by 2028, the significance of sustainability becomes increasingly paramount due to the anticipated surge in infrastructure development and escalating energy consumption.
It has therefore become crucial to balance always-on operations and meeting new sustainability metrics, such as reducing energy consumption per unit of compute power and considering locating Edge data centres near areas with easier access to renewable energy sources like wind, solar, hydro and nuclear power. With the right initiatives and a strong focus on sustainability, the telecom sector could lead the charge in empowering a greener future.
Telecom service providers are already setting ambitious targets to reduce power consumption and incorporate green initiatives into their daily activities. For example, optimising network sizing and radio planning by adopting energy-efficient 8T8R radios that provide sufficient capacity while consuming 30% less power and emitting fewer carbon emissions as compared to alternative approaches.
Daniel Burgon, Head of Risk and Compliance, Telehouse
Both future developments and legacy data centre sites must be defined by ecological sustainability. Data centres are a focal point in supply chains for so many organisations, helping to deliver the critical services that the general public use every day, from social media to GPS and purchases via bank cards. As digital demands increase, so does the infrastructure required to support unrivalled global connectivity at speed. However, the industry is under immense pressure from both customers and regulators to be as sustainable as possible. Applying sustainable technologies in a data centre environment is no longer optional and those who don’t place ESG strategies at the heart of their operations risk a competitive edge which may lead to obsolescence.
Many considerations fall under the umbrella of sustainability for operators. If we look purely at ecological factors, this includes the impact of new buildings on local biodiversity. Currently, there are strategies and regulations, such as the upcoming biodiversity net gain (BNG), that ensure newly developed land doesn’t threaten ecological diversity. Beehives, supporting natural pollinators, or green roofs and walls can improve BNG. However, when BNG is introduced, this will be a challenge as most data centres are situated in urban areas targeting optimum connectivity and power availability to meet customer requirements.
Sustainable initiatives must also focus on aspects such as renewable energy consumption which specifically apply to operations in both new and legacy sites. However, distribution network operators (DNOs) are usually unwilling to share energy origin specifics without incurring additional costs. For example, energy can be derived from a mix of wind, solar, biomass and nuclear sources. Operators, therefore, need to put pressure on these organisations to provide the reporting metrics they need to demonstrate where every kW of power was created and the local ecological impacts of that generation.
While there’s no silver bullet for sustainability across all emission scopes, the real focus for both existing and new sites is implementing sustainable initiatives where practicable. This means taking practical steps such as ensuring that all energy consumption associated with Scope 2 emissions comes from carbon-free sources while gaining clarity on the origin of energy from generators. These measures will help ensure that we hold the industry to the highest of standards, meet evolving customer expectations and regulatory requirements and ultimately make a positive difference to our downstream supply chain and the future of our planet.
Steven Salaets, CIO & EVP, Global Shared Service, Rimini Street
This has become an increasingly important topic due to many governments around the world signalling ambitious plans to achieve net zero in the next 20-30 years. By one research estimate, by 2025 the IT industry could be using 20% of all electricity produced and emitting up to 5.5% of the world’s carbon emissions. To put that into perspective, Statista reports there were over 6,000 data centres worldwide in 2022 and International Energy Authority (IEA) estimated data centres accounted for 1-1.5% of global electricity use, emitting nearly 1% of energy-related GHG emissions. IEA predicts energy use is increasing by 10-30% per year, so there must be an urgent focus on how to make data centres more sustainable because their importance to organisations in this digital era is only going to increase.
As organisations move more applications to the cloud, business leaders face both internal and external pressures around data centre strategies. Internally, there is a danger that capital and operational expenditure on facilities – and the applications they run – could grow exponentially for any company expanding its footprint and infrastructure. Business leaders must also manage stakeholder expectations, as ESG is now on the agenda for investors, employees and customers. It is critical to demonstrate how CEOs can make their organisations more sustainable in alignment with the values and beliefs of their key stakeholders. Therefore, the sustainability level of your data centre facilities should be seen as a reputational issue that could affect the bottom line.
Policymakers are also applying pressure for change. For example, the European Union has launched its green cloud and green data centres strategy. In response, many organisations aim to have net zero emissions by the year 2050. As such, data centres must become increasingly energy efficient, reuse waste energy and use greater renewable energy sources.
There is a strong understanding now among business leaders that it is essential for business operations and long-term profitability to pursue and consistently enact sustainability practices throughout the entire enterprise. How organisations manage their use of data centres will be integral to their ability to thrive moving forward. Unless organisations fulfil their commitments to reducing carbon emissions in the data centre, customers may walk away and policymakers may impose even more stringent regulations.
Jeremy Deutsch, President, Equinix APAC
When considering all the global challenges, growing stakeholder expectations around addressing long-term risks and increasing awareness of the environmental and social impacts the digital economy has on the world, data centre companies could play a positive role in bringing about a sustainable future.
Moving forward into the next evolution of hybrid work environments, remote education, digital social interactions, integration of AI solutions and a growing desire to care for this planet that we call home together, it has become even more imperative to sustainably enable the digital interconnections that drive our world.
As one of the world’s digital infrastructure companies with 245+ data centres across the globe, Equinix believes it has the responsibility to harness the power of technology to create a more accessible, equitable and sustainable future.
Equinix is committed to preserving our collective future by addressing pressing environmental challenges to ensure the sustainability and resiliency of our communities, global society and business. Our multi-faceted approach leverages numerous opportunities to advance sustainability within our industry and create long-term value for all our stakeholders.
Equinix recognises the urgency of the climate crisis and works hard to build resilience through its operations while driving change in the data centre industry. We established our 100% renewable energy target in 2015 and set our near-term science-based target and climate-neutral goal in 2021. We engage with suppliers and organisations that share our values to advance low-carbon policies and share renewable energy procurement knowledge to accelerate the clean energy transition. We also pioneer green building and design innovations throughout our data centres to do what it takes to address climate change.
We are leading the way to reduce Scope 1 and 2 emissions, including through our seasoned renewable energy procurement programmes. Equinix achieved 96% renewable energy coverage across our global operation in 2022, the fifth year in a row with over 90% global renewable energy coverage.
Data centres are the foundation of today’s digital economy and digital technologies can contribute to reducing global CO2 emissions by around 15%. The adoption of cloud computing could help to avoid the emission of more than one billion metric tons of CO2 between 2021 and 2024, according to IDC. At Equinix, we have created a framework of growth where our digital infrastructure plays a fundamental role in advancing sustainability for our users and stakeholders. We will continue to make progress on our sustainability goals and look to build a business that reflects our purpose to bring the world together on our platform to create the innovations that will enrich our work, life and planet.
