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Spotlight on Scope 3 Emissions in Data Center Construction
Data center construction is evolving with a focus on reducing Scope 3 emissions to build greener facilities and meet sustainability goals.
Drew Robb
May 22, 2024
5 Min Read
Alamy
The data center construction industry is witnessing a steady transition to greener practices. The latest wave of building innovation is largely being driven by a desire to reduce Scope 3 carbon emissions.
“We face a dilemma: How do we sustainably answer soaring demand to build more data centers while minimizing the carbon footprint?” said Bill Hassel, data center sustainability program manager at New York-based Turner Construction.
According to Markets & Markets, the data center graphical processing unit (GPU) market, totaling $14.3 billion in 2023, is expected to be worth $63 billion by 2028. That’s an annual expansion rate of 35% over the next five years. Unsurprisingly, this growth is being matched by massive demand for new data center construction.
Omdia tracks data center operations and construction worldwide. At the end of 2023, there were 3,227 data centers operating around the world taking up 376 million square feet of space and 42.3 GW of IT load.
“There are another 502 data centers in the planning or construction pipeline from 55 operators,” said Alan Howard, principal analyst at Omdia, during this year’s Data Center World conference in Washington, DC. “That means 22.5 GW more of IT load and 115 million more square feet of new data center capacity is coming online in the next couple of years.”
The capability is there to build such a large volume of data centers. But can it be done sustainably?
“We can innovate to reduce Scope 3 emissions through partnerships during data center builds and thereby curb carbon emissions,” said Grant Zoldowski, director of environmental management at United Rentals, which supplies industrial equipment for construction sites across North America. “It is all about being efficient and sustainable and using a model that utilizes our equipment well and cuts out waste.”
Scoping out the Scopes
There is sometimes confusion over Scope emissions, in terms of how types 1, 2, and 3 differ, as well as which apply to the data center. The US Environmental Protection Agency (EPA) defines the emissions ratings as follows:
Scope 1 emissions are greenhouse gases released directly from sources that an organization owns or controls, such as emissions from fuel combustion in company-owned boilers, furnaces, or vehicles.
Scope 2 emissions are the indirect greenhouse gases from the generation of purchased energy, including electricity, steam, heat, or cooling. While these emissions occur at the source of energy production, they are included in an organization’s GHG inventory due to their energy consumption.
Scope 3 emissions stem from activities linked to assets not owned or directly controlled by the reporting organization but that occur within its value chain. These emissions are indirectly influenced by the organization’s operations.
It is the Scope 3 emissions side where things get a little complicated. Scope 3 includes all sources not within an organization’s Scope 1 and 2 totals. In other words, Scope 3 emissions for one organization are Scope 1 and 2 emissions for another organization.
This, in effect, pushes environmental responsibility across the entire supply chain. As a result, Scope 3 emissions may well represent the majority of an organization’s total greenhouse gas (GHG) emissions.
Understandably, it can be tough to calculate all this. Outside consultants are often brought in to certify emissions levels and monitor the supply chain. Software is also available that helps measure Scope levels.
Much of the attention on Scope 3 has largely bypassed the data center industry. But this is changing. There are federal-level carbon disclosure mandates for public companies, as well as state and local carbon reduction rules.
The trucking industry is currently in the crosshairs of regulators, according to Hassel of Turner Construction, and the IT/data center space will soon follow. Fortunately, those in data center construction and construction equipment rental are already thinking about these new measures and including them in their operations. New proposals and construction budgets favor Scope 1, 2, and 3 carbon reduction initiatives, materials, and practices.
Data Center Emission Reduction Strategy
Hassel laid out several steps being done by his organization to lower the GHGs associated with construction. This included
Evaluate the biggest GHG contributors.
Identify alternative options, if any.
Figure out the logistics for viable alternatives to ensure they will operate well in the real world.
Complete the switch to where these methods and new materials are now part of the construction process.
Continue to monitor results and make further adjustments as needed.
“It is important to take action instead of just recording data,” Hassel explained. “Emissions reduction efforts need to be planned early and must extend to design professionals, equipment suppliers and others involved in the supply chain. These days, many data center owners now specify that general contractors track emissions data.”
United Rentals, for example, has been gradually transitioning to electric or hybrid machinery for use in data center construction.
“The transition cannot happen without taking into account options for powering equipment using batteries and alternative fuels such as hydrogen, renewable natural gas and biofuels,” said Zoldowski. “But a shift in fuel or power source requires a multifactor analysis that considers cost, potential downtime, infrastructure capabilities and overall risk.”
He gave the example of switching from all-diesel generation to a hybrid approach. This entailed the integration of a battery storage unit with a generator to curtail fuel consumption and emissions.
“Fuel consumption reduced by as much as 80% and emissions by up to 50%,” said Zoldowski
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