By Joe Craparotta, Vice President Cloud & Service Providers, Pacific, Schneider Electric
The best time is now
As the saying goes, the best time to plant a tree was 20 years ago, the second-best is today. In the same way, many in the data centre industry began their sustainability journey years ago. While progress has varied across the sector, the need to act is now more urgent than ever. The rapid rise of artificial intelligence (AI) is driving the need for Scale at Speed accelerating the need for Access to Power and Switching to Green.
AI and energy demand
The need for powerful processing will not slow. Deloitte projects that data centres will use 2% of global electricity in 2025, about 536 terawatt-hours (TWh). With AI and other high-demand technologies accelerating, this could double to 1,065 TWh by 2030.
Investment in data centre infrastructure is growing rapidly. The global market is forecast to expand from USD 125.35 billion in 2024 to USD 364.62 billion by 2034. This growth is largely driven by generative AI. While it enables innovation, it also presents complex sustainability challenges. Some in the industry are leading; others are still adapting. This rapid expansion demands a fresh approach to how energy is sourced, managed, and consumed.
It is interesting to sometimes see commentary that Data Centres are spoken about as part of the Energy Transition problem. This is incorrect. Data Centre infrastructure is a highly leveraged digital infrastructure asset, Cloud Computing and now AI will enable all industries the ability to scale their IT/OT platforms without having to duplicate systems.
Data Centre Infrastructure is at the core of all things digital, and a more digital world is a more sustainable world.
High stakes
The rise of AI is inevitable. By 2030, AI is expected to contribute USD 15.7 trillion to the global economy, more than the combined economies of China and India. Yet AI is a double-edged sword: it increases productivity, but also requires significantly more power, cooling and infrastructure, which in turn raises emissions.
However, AI can also support sustainability. It can simulate scenarios, optimise data centre performance and accelerate the development of new solutions.
A strong example of this is Schneider Electric’s recent partnership with NVIDIA which is helping to enable more sustainable, high-density AI infrastructure. Together, we’re addressing the demands of kilowatt to megawatt-scale AI workloads through prefabricated, liquid-cooled data centre solutions and new rack systems designed to support NVIDIA’s MGX architecture.
As AI infrastructure continues to scale, the stakes are high. Unchecked energy use has broad consequences – from worsening climate change to resource depletion. With global attention on sustainability, the industry must treat it as both an environmental imperative and a sound business strategy. There is now an exciting new chapter emerging – one where AI enables the industry, and even nations collectively, to lead in sustainability innovation.
Seven practical solutions
1. Robust Energy Procurement Strategy
Partner with specialists to navigate the energy markets, identify the right locations for Data Centre expansion and secure PPAs at the most attractive price
2. Evaluate infrastructure
Review current operations to identify inefficiencies in cooling systems, energy use and server utilisation. Improvements in these areas can lead to major energy savings.
3. Upgrade systems
Invest in energy-efficient servers, modern cooling technologies and renewable energy. Design new facilities for efficiency and retrofit older ones where possible.
4. Engage sustainable suppliers
Collaborate with partners that prioritise decarbonisation, especially in their supply chains. Use environmental product declarations to improve visibility of Scope 3 emissions.
5. Use advanced monitoring
Implement real-time monitoring and analytics to detect inefficiencies and automate performance improvements.
6. Apply AI smartly
Use AI to predict energy needs, optimise resource use and reduce waste. Machine learning can improve integration of renewable energy and lower fossil fuel dependence.
7. Reassess constantly
Make sustainability an ongoing process. Regular evaluation and adoption of best practices help maintain momentum and drive results.
A connected future
To maximise impact, data centres must integrate more closely with broader energy systems – from the grid to the chip and from chip to chiller. This end-to-end connection is both a technical necessity and a strategic advantage, enabling greater efficiency and lower emissions.
You cannot plant a tree 20 years ago, but you can still plant one today. Now is the time to rethink your sustainability agenda because what worked a year or six months ago may no longer be enough.
As AI accelerates growth in the data centre industry, urgent action is needed to control energy demand, reduce emissions and have an integrated strategy with the grid providers. Data Centres play a critical role in the acceleration of the Energy Transition and a more sustainable world.
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