The data centre industry can achieve decarbonization of Scope 1 and 2 emissions through two big approaches: renewable energy procurement and efficiency measures.Efficiency and Renewables Procurement to Ensure Greater RoI and Margins for Data Center, Component Vendors, and Sustainability Service Providers
On the renewables side, power purchase agreements (PPAs) within a local electricity market are currently the most effective way for the data centre industry to fund and procure renewable energy, ensuring that new clean energy is being added to the grid. Nevertheless, it is not without challenges.
On the efficiency part of the equation, innovations in cooling, sensors, automation, AI, and other advancements in server, storage, and networking technologies propose several new ways for the data centre industry to deal with Scope 2 emissions and simultaneously achieve lower energy expenses.
To improve decarbonization levels in the short term, procuring renewables (ideally, from local and additional sources) will impact the data centre at a far larger scale than any efficiency measure. In the long term, data centre operators must continue their efforts to achieve more efficient operations.
Table of Contents
Key Takeaways
Strategic Imperatives
Scope and Definitions
Current Scenario
Growth Opportunity Analysis - Data Center Decarbonization
Scope 1 and 2 Decarbonization Strategies in the Data Center Industry and its Infrastructure Providers
Growth Opportunity Universe - Data Center Decarbonization Market