- European data center’s carbon reduction timetable moves forward
- Report says commercial viability comes first, environmental goals secondary
- Aggreko recommends the need for strategic partnerships between companies and energy suppliers
Data centers are among the largest consumers of energy in Europe and face unique challenges in achieving net zero targets.
a recent survey Agric Fluctuating energy costs and grid instability are prompting data center operators to rethink their carbon reduction schedules, the study found.
More than 90% of C-suite executives surveyed have adjusted their net-zero targets, with half extending their timelines as a result of these ongoing energy-related challenges.
Decentralized energy solutions are growing in popularity
For many data centers, achieving sustainability goals requires balancing environmental goals with economic viability, especially as energy prices continue to rise.
To address these energy challenges, data centers are increasingly adopting decentralized energy solutions to reduce grid dependence and increase resiliency. The report said 87% of European executives are already implementing some form of decentralized energy, with 54% planning to expand these systems.
The trend toward decentralization allows data centers to maintain operational stability while reducing reliance on traditional grid energy, which is often unpredictable and expensive. However, even with decentralized systems in place, data center leaders remain wary of fully committing to ambitious decarbonization timelines given current economic constraints.
For company executives, the situation is dangerous because, despite pressing environmental goals, cost and commercial viability remain top priorities for data center executives. Only 12% of CEOs ranked the speed of decarbonization as their top goal, while the majority prioritized reducing energy costs and achieving business advantage.
Since data centers operate on low profit margins, any investment in sustainable practices must demonstrate a clear return on investment. For many in the sector, the balancing act between sustainability and financial stability is proving complex, with limited funding available for large-scale green measures.
A key risk identified in the report is the role of supply chains in delaying the energy transition. Nearly half of the executives surveyed cited supply chain issues as a significant impediment, with 21% ranking them as a top concern.
As supply chain disruptions persist, ensuring the technology and resources required for resilient upgrades has become a daunting challenge. This uncertainty adds another layer of difficulty to achieving net-zero emissions, especially as data centers try to find low-carbon energy sources.
To address these challenges, Aggreko recommends that companies form strategic partnerships with energy suppliers. By partnering with energy experts, data centers can better evaluate options such as energy-as-a-service models and power purchase agreements, providing flexible, lower-risk alternatives to traditional energy procurement. These partnerships enable data centers to explore innovative energy strategies without excessive financial commitment, a key approach to achieving short- and long-term sustainability goals.
Although rapid decarbonization is difficult to achieve under current conditions, the report shows that data centers remain committed to sustainable development. With 80% of CEOs planning to increase investment in energy solutions, even if only gradually, there is optimism about continued progress. By taking a balanced approach that is economically realistic, data centers can manage the operational demands of today’s market while moving toward a sustainable future.