Much-needed plans to boost the UK’s digital economy are threatened by grid capacity limits and connection delays. Indeed, a shortage in power supply is one of the biggest challenges facing the data centre sector.
However, there is an answer: wherever data centres are built, renewable energy assets – whether pre-existing or planned – must be co-located, because by taking data centres to renewable energy assets and plugging them into these directly, we can limit the impact on the grid.
With energy expenses also comprising a large proportion of data centre’s operating costs, finding more effective solutions for energy supply offers financial as well as practical benefits, whilst also boosting sustainability.
However, as highly technical sites, data centres have precise voltage and frequency requirements. So whilst the solution might be clear, its execution is trickier. Given this, how can data centre developers and operators find viable ways to integrate secure and optimised energy supply and consumption?
Behind-the-meter energy
One solution is to invest in on-site or near-site renewable energy generation: ‘behind-the-meter’ energy. This includes utilising solar panels on roofs or in nearby fields, nearby wind power, or other renewable energy assets.
This offers predictability on cost, independence and resilience. The long-term price and supply security is highly valuable at a time of considerable fluctuation in energy prices. Because subsequent energy costs are usually lower than full reliance on grid electricity, any upfront investment will quickly begin paying for itself. There are also options to sell excess energy to the grid, capitalise on tax credits for renewable investment, and work with companies offering fully funded installations with no capex costs.
Every data centre will have its own location, budget, and energy considerations determining, for example, whether to use solar photovoltaic systems, wind turbines, or combined heat and power systems. Accordingly, to map out appropriately bespoke plans, data centres should work with experts to assess consumption patterns and requirements. Grid opportunities and constraints in the area should also be considered, as should initial capital costs, maintenance requirements, and expected savings and revenue.
Corporate Power Purchase Agreements
Clearly, behind-the-meter energy has many benefits, but it also requires space nearby to install everything. All-too-often, this is simply unavailable. Corporate Power Purchase Agreements (CPPAs) for renewable energy are an alternative, underused tool: contracts with energy providers where companies agree to buy energy over a long-term period at a pre-agreed rate. These allow data centres to buy and sleeve renewable power from solar/wind farms at sites totally separate to their main location, again guaranteeing cost and supply stability.
CPPAs also provide transparency and assurance that data centres are buying renewable power, particularly if they integrate innovative technology that directly matches green generation to data centres’ consumption. CPPA suppliers can demonstrate this with greater accuracy and immediacy than previously possible, for instance by showing that a renewable asset is producing an equivalent amount of energy to what a data centre is consuming through transparent time-based energy matching.
The importance of optimisation
Regardless of whether operators choose on- or near-site generation or a CPPA, it is essential that they optimise energy usage to make their data centre as efficient, sustainable, and cost-effective as possible. Both CPPAs and behind-the-meter provide detailed data and access to expert power generation specialists. This insight can be used to adjust operations, reduce energy costs, mitigate environmental impacts, and increase ‘demand flexibility’.
For instance, data centres may run processes at night owing to cheaper “traditional” energy prices. However, by scrutinising data relating to solar power usage, they may discover it is more efficient to move operations to daytime – when they are generating or sleeving maximum solar power. Data centre operators should also be mindful of the possibility of low or even negative energy prices, for example on particularly sunny and windy days, when buying energy. Leveraging this information should be a crucial component in all data centres’ energy plans, as it allows them to purchase, use, and forecast the right source of energy at the right time, optimising cost and carbon efficiencies.
Integrating renewable energy into data centre operations offers practical, financial, and sustainable benefits. Whilst it may appear difficult, it is essential that developers, owners, and operators explore the available options. By doing so they will discover effective solutions which can be tailored to their needs. Both behind-the-meter generation and CPPAs offer routes to renewable energy, whilst also unlocking a world of data to enhance efficiency further.