Research

On-site Power Generation for Data Centers : Integrating Data Centers with Low Carbon Energy Assets

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Abstract

The Information and communications technology (ICT) sector is one of the fastest-growing sectors in the world. It is apparent that the large amount of information and digital services we consume via the Internet also demands physical resources in the form of large, concentrated information technology (IT) infrastructure. We see this especially in the growth of data centers and their energy and resource consumption. Data centers consumed approximately 270 terawatt hours (TWh) of electricity globally in 2019, or about 1% of total global power consumption, according to the International Energy Agency (IEA). This is expected to rise as 5G, artificial intelligence (AI), and other enabling technologies unlock a host of new applications. Facing this development in a time where renewable energy is still scarce requires data centers to explore and utilize power supply concepts that support the energy system of the future. The SDIA and its members advocate supporting the integration of data centers with energy assets, be they decentralized renewable energy assets or centralized Combined Heat and Compute (CHC) assets. Such integration would enable distributed, resilient, and environmentally friendly digital infrastructure, and facilitate the decarbonization of our energy system. This paper outlines, at a high level, the concepts that could be employed to deliver the twin transition of decarbonization of our energy systems and the digitalization of our economy. This paper aims to highlight where our focus should turn next in creating a truly sustainable digital economy by 2030. We call on policy-makers and industry stakeholders to acknowledge energy asset integration and similar concepts as a feasible solution to energy-, climate-, digital sovereignty-, and resiliency-related challenges, and support their development and rollout with respective adjustments in policy frameworks and funding from the public and private sector.