Sustainable Data Centres: Powering the Future of AI in Europe

The Growth of AI Data Centres

Demand for data centre space by AI providers looking to deliver applications has soared over the past year. This in turn has driven data centre power consumption through the roof, contributing significantly to global electricity demand.

To put the energy usage demands of AI data centres into perspective a single large-scale data centre can require a supply of 100 megawatts of power, which is equivalent to the energy needs of 16,400 households. As global electricity demand for data services increases, the environmental impact of these facilities becomes more pronounced.

Increasing demand on energy consumption

The increasing demand for energy has a significant environmental impact which cannot be ignored. In the drive to build a more sustainable future, it is essential that operators find ways to power data centres in an eco-friendlier manner. This is not just a matter of environmental responsibility; it is also a strategic necessity for the long-term viability of the AI industry.

Consumers and businesses alike are increasingly demanding that the technologies they rely on are environmentally responsible. Failure to address energy efficiency and sustainability challenges of AI-ready data centres could lead to public backlash, increased regulation and a loss of competitive edge in the global marketplace. It is important, therefore, that Data Centre Operators and Cloud Service Providers invest in sustainable data centres and reduce their carbon footprint.

Top Countries with Renewable Energy at Scale

Some European countries are particularly attractive for powering AI data centres with renewable energy. 

They include:

Norway

Norway generates so much power that it is a net exporter to neighbouring countries. With its abundance of hydroelectric resources, Norway is a great location for data centre operators seeking sustainable power. The country's cool climate also helps reduce the energy needed for cooling, further enhancing the environmental benefits that can be gained through sustainable data centre design.

Sweden

Like Norway, Sweden has a strong green energy portfolio, with hydroelectric and wind power playing a significant role. The country's cold climate and access to renewable energy make it a prime location for eco-friendly data centres.

Iceland

Renowned for its geothermal and hydroelectric resources, Iceland offers a unique opportunity for data centres to tap into 100% renewable energy. The country's cool climate and abundance of renewable sources make it a particularly appealing location for sustainable AI data centres.

Germany

As a leader in sustainability practices, Germany has made significant strides in transitioning its power grid to clean, sustainable sources. This makes the country an attractive option for data centre operators seeking to reduce their environmental footprint. However, the country has also proposed legislation that would compel operators to use waste heat generated for community projects such as district heating which may cause implementation challenges.

The Role of Government Regulations and Incentives in Promoting Sustainability

Governments across Europe have a crucial role to play in driving the adoption of sustainable practices in the AI data centre industry, particularly in promoting data centre sustainability. Through a combination of regulations, incentives and supportive policies, policymakers can create a favourable environment for the development of eco-friendly data centres. The importance of the supply chain in promoting sustainability cannot be overstated, as collaborating with suppliers to reduce carbon footprints and emissions is essential.

One example of such an initiative is the European Union's "Green Deal," which aims to make Europe the first climate-neutral continent by 2050. This ambitious plan includes measures to promote the use of renewable energy, improve energy efficiency and reduce greenhouse gas emissions.

Many European countries, including Norway, have implemented tax credits, grants and other financial incentives to encourage businesses, including data centre operators, to invest in renewable energy and energy-efficient technologies. These government-backed initiatives can help offset the upfront costs associated with sustainable infrastructure, making it more financially viable for data centre owners to embrace eco-friendly solutions.

Challenges and Future Prospects for Sustainable AI Data Centres

A key challenge for the data centre industry is the intermittent nature of some renewable energy sources, such as solar and wind power. Ensuring a reliable and consistent supply of electricity to power mission-critical data centres is technically complex.

Energy storage technology is advancing and becoming more reliable and cost-effective. Additionally government policies and incentives are evolving to further support sustainable data centre practices. So, we can expect to see a rapid acceleration in the adoption of sustainably generated energy in the AI data centre industry.

As the demand for artificial intelligence-powered services continues to grow, the energy consumption of these facilities is expected to skyrocket. This will bring renewed focus on the efficiency of the technology deployed. Power Usage Effectiveness (PUE) is a key metric for measuring this efficiency and is used to ensure that data centre designs are optimised.

However, the scale of data centre growth will dwarf any gains that can be made though greater data centre efficiency alone. So, securing large scale renewable electricity is critical to data centre operators wishing to continue to scale their businesses.

The Race to Find and Secure Power

The scale of AI demand and scarcity of available power is causing digital infrastructure companies to build data centres on sites that have high capacity grid connectivity. They cannot wait for new infrastructure to come on-line; the technology is moving at speed and those who wish to be successful in AI must act now. The importance of data centre sustainability is also growing due to regulatory pressures and carbon emission targets.

Finding sustainable power is not as straightforward as it might first appear. Some countries have significant electricity supplies, but much of this has already been allocated in pre-existing supply contracts.

Given the considerable strain the electricity grids in major European metro markets have come under, finding and securing sustainable power is a complex business. Discovering locations with sufficient sustainable power is becoming increasingly difficult and ensuring that data centre operators have contracted power available that can be committed to a specific project requires expert analysis.

CBRE and our commitment to sustainability

CBRE is leading the way in sustainable real estate. Our focus is on creating workspaces that are both environmentally friendly and economically viable. We actively seek ways to measure and reduce those impacts. In 2021, we pledged to reach net zero carbon emissions by 2040 and you can learn more about our decarbonization plan here.

Read CBRE's Commitment to Environmental Sustainability outlining our management system to guide sustainability and environmental practices and programs. In addition, our Environmental Sustainability Policy outlines our ambition to reduce our environmental impact and drive sustainable real estate practices. 

CBRE and sustainability for our clients

As a global leader in data centre services, we are dedicated to helping our clients achieve their sustainability initiatives. With an unrivalled knowledge of sustainable power supply, our clients are able to invest in AI-ready data centres that are looking toward a sustainable digital future.

Through our comprehensive range of solutions, we provide expert guidance and support, from strategic planning to implementation. We conduct in-depth assessments to identify areas for improvement, develop customized roadmaps, and support sustainable building design and green leasing. We can help clients reduce their environmental impact, enhance their reputation, and contribute to a more sustainable future.

To read more on our market insights on sustainability and energy efficiency, visit our hub here.

With our unrivaled knowledge of sustainable power solutions, we can help you navigate these challenges and ensure that your data center operations are both efficient and environmentally friendly. Get in touch to find out more.