The Energy Transition Journey for Data Centers

The proliferation of the information age and the advancements in digital technologies have resulted in a steep demand for Data Centers. However, this soaring demand has brought to light a significant environmental concern due to the immense power consumption associated with Data Center operations, with electricity constituting up to 70% of their total operational costs. This has made it imperative for Data Centers to transition swiftly toward cleaner, sustainable and alternative sources of energy which can not only significantly curtail their energy costs but also simultaneously align their operations with sustainability goals, including achieving net-zero emissions.

Renewable energy sources like solar, wind, hydroelectric and geothermal power offer promising alternatives that can potentially mitigate the environmental burden while reducing operational expenses over the long term. Many Data Center operators have started recognizing the urgent need for a sustainable shift in their energy consumption practices and increasingly exploring and investing in renewable energy solutions to power their operations.

Datacenters require an uninterrupted power supply 24/7. While achieving 100% renewable power in Indian Data Centers might pose challenges currently, it is feasible to substantially increase reliance on renewables. This can mark the commencement of an essential journey toward sustainability and eventually achieving 100% clean energy transition. Among the clean energy sources, Solar power stands out due to India's abundant sunlight. Implementing on-site solar panels or sourcing solar energy from off-site power plants are viable choices to begin the clean energy transition journey.

Begin with Solar
In India's context, solar power alone holds immense potential, contributing up to 65% of a Data Centers’ energy needs. However, this percentage can substantially increase by integrating solar power with other renewable sources like wind energy or employing efficient Battery Energy Storage Systems (BESS). Pumped hydro power is gaining attention as an effective means to complement solar energy. This involves storing excess energy by pumping water uphill during surplus solar production times and releasing it downhill to generate electricity when needed.

In scenarios where a Data Center situated in a region lacking significant wind resources seeks to complement its solar power generation with wind energy, accessing wind power through the Inter-State Transmission System (ISTS) could become a viable option. ISTS facilitates the interconnection and transmission of electricity between different states or regions across India. However presently, integrating wind power from distant locations into a Data Center's energy mix via ISTS might encounter regulatory complexities and logistical challenges.

Carbon credits could be another critical tool to enable a complete energy transition for Data Centers. Carbon credits are essentially a representation of a reduction in greenhouse gas emissions. Projects or initiatives that contribute to reducing or removing carbon emissions are eligible to earn these credits. Datacenters to make up for the remaining part of their clean energy requirement can avail of carbon credits by buying them.

Renewable energy partners play a crucial role in addressing the challenges faced by Data Centers in their aspiration and journey towards a complete transition to clean energy. These partners are well-versed in managing regulatory complexities, adept at implementing solar plants and leveraging the latest technologies tailored to the unique requirements of specific Data Centers. Indeed, a genuine 100 percent switchover is possible for Data Centers. Let’s begin the green journey.