In recent years, data centers have emerged as a critical infrastructure component in the digital age, powering everything from cloud computing to social media platforms. The growing demand for data processing and storage has resulted in the development of massive facilities around the world, consuming significant amounts of energy in the process.
One such example is China Telecom’s Inner Mongolia Information Park, a sprawling complex that spans 100 hectares and consumes up to 150 MW per hour. Similarly, in North Virginia, the Data Center Alley hosts around 300 facilities, each consuming 10 to 50 times the energy per square meter of a typical commercial office.
As the demand for data processing continues to rise, utility providers like Dominion Energy have been forced to undertake significant infrastructure upgrades to meet the needs of these energy-intensive facilities. In 2022, Dominion Energy had to pause grid connections for new members of Data Center Alley and is now constructing new transmission lines to enhance capacity.
According to consultant McKinsey & Company, the power consumption of data centers in the United States is expected to increase from 17 GW per hour in 2022 to 35 GW per hour by 2030. This surge in power demand is being driven by the proliferation of high-density and power-intensive data center infrastructure.
“The hyperscale cloud providers all seem to be locked in an arms race to build out as much infrastructure as quickly as they can,” said Dan Thompson, principal research analyst at S&P Global Market Intelligence. “Densities in watts per square foot are rising, but I think what we’re seeing right now is just the tip of the iceberg.”
Efficiency is crucial in managing the energy consumption of data centers, with a focus on optimizing the power usage effectiveness (PUE) ratio. Lower PUE values indicate greater efficiency in utilizing energy for computing purposes rather than ancillary activities like cooling and lighting.
S&P’s Thompson noted that power densities have decreased from an average of 1.58 in 2020 as data centers have become more efficient in their cooling systems. While there has been a trend towards designing data centers with lower PUE values, some facilities that aim for ultra-efficiency end up consuming large volumes of clean water, posing environmental challenges.
To address the environmental impact of data centers, tech giants like Microsoft have been actively investing in renewable energy solutions. Microsoft recently signed a record 10.5 GW power purchase agreement with asset manager Brookfield, aiming to source solar, wind, and other carbon-free energy technologies to power its operations from 2026 to 2030.
“The rise in our scope 3 emissions primarily comes from the construction of more data centers and associated embodied carbon in building materials,” Microsoft stated. The company’s commitment to renewable energy aligns with its goal of achieving net-zero emissions by 2030.
In addition to renewable energy strategies, data centers are also exploring the concept of colocation to meet their energy demands. By integrating solar, wind, and battery storage solutions, companies can optimize their energy profiles and reduce costs while enhancing their environmental sustainability.
Efficiency is not just limited to energy consumption but also extends to operational resiliency and sustainability. Data centers are increasingly adopting workload management software to respond to real-time energy conditions and track their carbon footprints for audit purposes.
As data centers continue to expand and evolve, the industry faces challenges in balancing energy demands, environmental considerations, and operational efficiency. The collaboration between tech companies, utility providers, and renewable energy developers will be crucial in shaping the future of data center infrastructure and environmental sustainability.
Data center power usage expected to grow significantly as electricity demand doubles in four years – PV Magazine USA.