Strategies to Achieve Carbon Neutrality and Foster Sustainability in Data Centers

Abstract

Data centers and transmission networks are crucial in the digital age, with the market expected to grow from $50 billion in 2021 to $120 billion by 2030. However, their extensive computing infrastructure and continuous operation generate significant heat, necessitating energy-intensive cooling systems. The IEA report revealed that data center power consumption surged by over 60% between 2015 and 2021, with transmission networks experiencing a 60% usage increase. Addressing these growing energy demands poses significant challenges for the industry, with some countries considering restrictions on new data center licenses due to environmental concerns. To mitigate the climate impact, the industry must prioritize the procurement of low-carbon or carbon-free electricity to reduce Scope 2 emissions related to electricity, heating, and cooling. Tech giants like AWS, Google, and Meta/Facebook have already adopted ambitious public targets, either running on carbon-free electricity or investing in global projects for cost-effective and large-scale emissions reduction.