Insight and analysis on the data center space from industry thought leaders.

Data Centers Lead the Charge Toward Net Zero Emissions

Data center operators with aggressive goals aim to mitigate their emissions as early as 2030.

Jenny Gerson, Head of Sustainability

October 15, 2024

5 Min Read
abstract illustration of the concept of net zero emissions
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Given all the power that data centers draw from utility companies, colocation providers play a key role in the world’s drive for sustaining natural resources. One of the key objectives of accomplishing this mission is achieving net zero emissions.

In accordance with The Paris Agreement, the United Nations Intergovernmental Panel on Climate Change (IPCC) outlines that a science-based approach to net zero includes aligning with mitigation pathways to limit global warming by 1.5 degrees Celsius.

For net zero emissions, the World Resources Institute and the World Business Council for Sustainable Development created the Greenhouse Gas Protocol. This establishes three categories for measuring and reporting greenhouse gas emissions:

  • Scope 1—direct emissions produced onsite

  • Scope 2—emissions from purchased electricity

  • Scope 3—emissions produced by upstream and downstream inputs (suppliers and customers)

In the effort to make progress toward abating all three scopes of emissions, the data center industry is one of the leading sectors. This is due to the industry’s evolving commitment toward sustainability, because it’s sound business, and due to pressures from customers and communities to align with their sustainability goals. Further, data center operators are savvy energy purchasers, so they already have a leg up when contracting power, including renewable power.

Related:Behind-the-Meter Energy: Powering Data Centers for a Sustainable Future

The path to net zero starts with developing a baseline of emissions that a data center is responsible for across its value chain. After establishing a baseline, providers can then set a corporate goal to achieve net zero.

Data center operators with aggressive goals aim to mitigate their emissions as early as 2030. It is easiest to address scope 1 and 2 emissions. However, since reductions around scope 3 emissions depend on the actions of suppliers and customers, this is a harder scope to both account for and address. As a result, many companies may have longer timelines to reach net zero for scope 3 emissions.

Scope 1: Renewable Fuels and Carbon Removals

For scope 1, the primary contributors to emissions for data centers include diesel for emergency backup power generation; natural gas used for heating, backup power generation, or in some cases primary power; and refrigerants within cooling systems. Natural gas used for heating is straightforward to mitigate by using electrical heating or even using waste heat from the servers. However, natural gas used for primary or backup power, diesel, and refrigerants that may escape from cooling systems is more difficult to remove.

Related:Beyond CSR: How Data Centers Can Keep Up with Rising ESG Regulations

Many data centers deploy natural gas generators rather than diesel because natural gas has the potential to run on green hydrogen and other renewable fuel sources. While green hydrogen isn't readily available at scale yet, it may be in the future.

In Europe, some data centers plan to deploy small modular reactors (SMRs), starting in 2029. SMRs may also be a viable source of carbon-free power in the US. However, development appears to be moving slower than in Europe.

Once all levers of scope 1 emissions abatement have been addressed, the IPCC points to the need for high-quality carbon removals to address the remaining hard-to-abate emissions. This process removes carbon dioxide from the atmosphere and prevents it from contributing to climate change.

Scope 2: Optimizing Energy Consumption, Generation, and Purchasing

For scope 2, data center operators must take an operational and a strategic approach to achieving net zero emissions targets. They can do this through energy-efficient standard designs, efficiency retrofit projects, daily monitoring and management to optimize power utilization efficiency, and by incorporating innovative technologies.

Once energy consumption is optimized, efforts to reduce scope 2 emissions include buying and generating renewable power. One option for data centers to reduce their power procurement needs is to generate and store power onsite with solar photovoltaic (PV) panels or wind turbines plus storage.

Related:Circular Economy in Data Center Operations: Turning Waste into Opportunity

Given the space requirements of solar, wind, and batteries, this may only be a small percentage of a data center’s total consumption. However, it’s also power that a provider doesn't have to purchase.

Some providers pair wind and solar with large-scale batteries for energy storage to address the intermittency concerns of renewable sources. This approach allows for load-shifting during peak grid demand. Other data center operators are looking into geothermal options for powering their facilities.

Aside from using onsite generation, data center operators can mitigate their scope 2 emissions by purchasing power contracts for renewable or zero-carbon electricity. Options include renewable energy certificates, power purchase agreements, and virtual power purchase agreements.

Scope 3: Decarbonizing the Value Chain

Scope 3 presents the most difficult requirements to achieve because operators have to rely on suppliers, contractors, and vendors who provide building materials and inside structures for data centers. Customer servers and networking gear also add to scope 3 emissions through equipment power consumption.

For building construction, steel and concrete are two of the worst offenders for the carbon emissions they generate during the manufacturing process. The concrete industry is experimenting with different materials and processes for concrete production that could use less carbon, and which would result in "green" concrete. Some types of green concrete can even sequester carbon from the atmosphere in the concrete over time by pulling in carbon from the atmosphere as it ages while making itself sturdier.

Using green steel, which is typically made in a less-carbon intensive process or by using recycled steel content, is also an emerging option. While few facilities in the US use processes that consume less carbon in the production of steel today, those are expected to become more prevalent.

Reporting and Accountability

In addition to reducing carbon emissions, accountability is an important aspect of net zero goals. Data center providers should track and report on emissions to all stakeholders. That will help keep each company on track to contribute positively to sustaining the world’s natural resources as companies work towards their targets.

Jenny Gerson is the Head of Sustainability at DataBank, where she is responsible for creating and implementing the company’s Environmental, Social, and Governance (ESG) strategy.

About the Author

Jenny Gerson

Head of Sustainability, DataBank

Jenny Gerson is the Head of Sustainability at DataBank, where she is responsible for creating and implementing the company’s Environmental, Social, and Governance (ESG) strategy.

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