Featured in MEP Middle East, David Auriau, Co-Founder and CEO of Positive Zero, discusses the increasing energy demand from data centres and how sustainable solutions are essential.
Digital solutions enable industries to monitor, optimise operations, and enhance energy efficiency. Consequently, digitalisation often accelerates the journey towards lower carbon emissions by providing the necessary tools and data to drive sustainable practices.
However, the situation regarding data centres is more complex. While they are central to the digital economy—enabling cloud computing, big data analytics, and artificial intelligence—they are also energy-intensive.
Unlike other industries where digitalisation helps reduce emissions, data centres can, paradoxically, contribute to higher carbon emissions if not managed sustainably. With energy consumption closely tied to carbon emissions, data centre sustainability is under scrutiny unless renewable energy sources and energy-efficient technologies are implemented.
Growing Demand for Data Centres
From 2015 to 2029, global internet users are expected to grow from around 3 billion to over 7.9 billion. Currently, approximately 66% of the world’s population has internet access. Alongside this expansion in user base is a rapid acceleration in digitally driven services. E-commerce, cloud computing, autonomous vehicles, and crypto mining (especially proof-of-work cryptocurrencies) have intensified the need for data centres. Cambridge University researchers have built an index estimating power demand and annualised electricity consumption for cryptocurrencies such as Bitcoin. The world’s most common cryptocurrency consumes an estimated 148 TWh per year—equivalent to 0.6% of the world’s electricity—more than many countries, including the United Arab Emirates. Similarly, autonomous vehicles produce substantial data, with lower-end estimates around 300TB per year.
For many sectors, data centres also need to be locally present; for example, financial services often have legal and regulatory requirements to hold data on-shore.
Generative AI has recently entered the mainstream. While artificial intelligence systems have existed for decades, platforms like ChatGPT, GPT-4, and Gemini (formerly Google Bard) have made everyday usage accessible. Advancements in Web3, Metaverse, and XR (e.g., Apple’s Vision Pro and similar devices) will further increase data storage needs.
As more services and industries go online, there is a significant growth forecast for global data generation. In 2010, annual global data generation was estimated at around 2 zettabytes (2 trillion gigabytes). By 2020, that figure had reached 64.2 zettabytes, and by 2025, Statista projects it will nearly triple to around 181 zettabytes annually.
Meeting the Needs of Rising Data Consumption
To meet the massive demand for data storage, there has been a substantial increase in data centre infrastructure and the energy required to power it. Data centres house IT equipment, including communication systems, network infrastructure, storage, processors, servers, connectivity systems, and an uninterrupted power supply.
Historically, energy provision has depended on electricity grids reliant on fossil fuels. Recent technology advancements have enabled data centres to improve energy consumption, but the sector still accounts for 1-3% of global electricity use—a figure that continues to rise.
Comprehensive decarbonisation services, including energy efficiency management and renewable power, are essential to reduce data centres’ emissions as the world aims for Net Zero by 2050. Reports on the ICT sector, along with data from the International Energy Agency (IEA), indicate that data centres contribute nearly 1% of energy-related greenhouse gas emissions. Hyperscale data centre facilities typically require energy capacities of 20-50MW and use up to 5 million gallons of water daily.
Challenges for Energy Consumption within UAE Data Centres
The UAE has a particularly hot desert climate, scarce in water, which presents a unique challenge for data centres. These operations already produce a lot of heat and require effective cooling for optimal performance. With summer temperatures regularly exceeding 40 degrees Celsius, novel cooling approaches are needed, with distributed solar power generation becoming an essential part of the energy mix. At the start of 2024, the Dubai Electricity and Water Authority (DEWA) launched the D33 Industry-Friendly Power Policy, enabling manufacturing, agritech, and data centres to build larger solar systems than permitted under the Shams regulation (capped at 1.2MW). This supports reduced energy costs and Dubai’s decarbonisation goals.
With over 100 data centre facilities in operation or under construction across the UAE and Saudi Arabia, on-site solar rooftops and ground-mounted solar installations could significantly contribute to their energy and cooling requirements, minimising costs. To manage demand spikes, data centres can also utilise tailored battery storage, benefiting from a flexible, scalable ‘as-a-service’ model for energy storage.
Despite these challenges, the region’s data centre market is growing rapidly, driven by increased digitalisation, regulatory demands, and government support.
Improving Energy Consumption and Sustainability of Data Centres
Ironically, one area driving the sharp rise in data centre consumption could also offer solutions. Achieving a sustainable balance between digitalisation and decarbonisation requires a focused strategy that integrates digital innovation with environmental responsibility. Here are three ways data centre operators in the region can mitigate environmental impacts while adopting advanced technologies:
Data Handling: Artificial intelligence can be used at data centres as part of energy efficiency measures to optimise energy consumption, making real-time adjustments to electricity usage and cooling based on demand. Advanced data monitoring and analysis can improve the distribution of cooling across data centres, minimising energy use while maintaining performance.
Cooling and Efficiency: Data centres primarily use air cooling and liquid cooling methods. Air cooling involves systems like CRAH (Computer Room Air Handlers) with chilled water or CRAC (Computer Room Air Conditioning) units using refrigerants. Liquid cooling, on the other hand, involves systems such as Coolant Distribution Units (CDUs) and rear door heat exchangers to cool specific components or submerge entire racks in cooling fluids. While combining these methods is highly effective, it requires significant initial investment. Many data centres are thus opting for “Cooling-as-a-Service” solutions, providing cooling without large capital expenses.
Renewable Power: Renewable energy is crucial to prevent data centres from becoming a major emissions source. Using renewable microgrids or distributed solar generation (such as solar rooftops) allows data centres to integrate with the grid while keeping carbon emissions in check. According to IEA data, Amazon, Microsoft, Meta, and Google are the four largest corporate purchasers of renewable energy PPAs (Power Purchase Agreements). Amazon Web Services, for example, already operates a fully renewable-powered data centre in Bahrain. These companies recognise the social, environmental, and economic advantages of using renewable energy for data centres.
