- Carbon reduction timelines continue to move forward for European data centers
- The report states that commercial viability comes first, as environmental objectives are secondary
- Aggreko suggests the need for strategic partnerships between companies and energy suppliers
Data centers are some of the largest energy consumers in Europe and face unique challenges in achieving net zero emissions goals.
A recent survey by Aggreko found that volatile energy costs and grid instability are prompting data center operators to reconsider their carbon reduction timelines.
Of the executives surveyed, more than 90% have adjusted their net zero goals, and half of them extended their timelines due to these persistent energy-related challenges.
Decentralized energy solutions are gaining ground
For many data centers, achieving sustainability goals requires balancing environmental goals with economic viability, especially as energy prices continue to rise.
In response to these energy challenges, data centers are increasingly adopting decentralized energy solutions to mitigate grid dependency and improve resilience. The report states that 87% of European executives are already implementing some form of decentralized energy, and 54% plan to expand these systems.
The move toward decentralization allows data centers to maintain operational stability while reducing dependence on traditional grid power, which is often unpredictable and costly. However, even with decentralized systems in place, data center leaders are cautious about fully committing to ambitious decarbonization timelines, given current economic constraints.
The situation is dangerous for business executives, as despite the urgency of environmental goals, cost and commercial viability remain top priorities for data center executives. Only 12% of CEOs considered the speed of decarbonization as their primary goal, while the majority prioritize reducing energy costs and achieving business advantage.
Since data centers operate on tight profit margins, any investment in sustainable practices must demonstrate a clear return on investment. For many in the sector, this balancing act between sustainability and financial stability is proving complex, with limited capital available for large-scale green initiatives.
A key risk identified in the report is the role of supply chains in delaying the energy transition. Nearly half of executives surveyed consider supply chain issues a major barrier, and 21% consider them their top concern.
As supply chain disruptions persist, securing the technology and resources necessary for sustainable upgrades has become a formidable challenge. This uncertainty adds another layer of difficulty to achieving net zero, particularly as data centers attempt to source low-carbon energy options.
To address these challenges, Aggreko recommends strategic partnerships between companies and energy providers. By collaborating with energy experts, data centers can better evaluate options such as energy-as-a-service models and power purchase agreements that offer flexible, lower-risk alternatives to traditional energy procurement. These partnerships allow data centers to explore innovative energy strategies without committing too much financially, a crucial approach to achieving short- and long-term sustainability goals.
Although current conditions make it difficult to achieve rapid decarbonization, the report suggests that data centers remain committed to sustainability. With 80% of CEOs planning to increase investment in energy solutions, even incrementally, there is optimism for continued progress. By taking a balanced approach that aligns with economic realities, data centers can move toward a sustainable future while managing the operational demands of today’s market.
