EDITOR ’ S QUESTION
ANTHONY MAYALL , CHIEF COMMERCIAL OFFICER , SUSTAINABLE ENERGY FIRST
t ’ s no secret that data centres are an
I energy-intensive part of the economy . The International Energy Agency ( IEA ) estimates that data centres account for around 1 – 1.15 % of global electricity use , even after significant energy efficiency improvements . This share of energy consumption reflects the importance of data centres to modern life ; global Internet traffic has increased 20 times since 2010 . So , what can be done about it ?
Take control of your sourcing
The more energy your servers get from renewable sources , the greener your operations will be . But switching to a ‘ 100 % renewable ’ tariff from a regular supplier may not be the best choice . For cheaper energy and greater control over your energy sourcing , you have better options .
Develop an on-site generation asset
This means ownership of the energy that powers your business and there are various financial models for it . If you want to own the asset outright , you may choose lease-to-own , third-party finance or CapEx . Or you may choose another model whereby another company owns the generators and uses your site . You just need to choose a financing option that works for the individual structure of the business .
However , you fund the investment , you can be confident that it will swiftly pay for itself . Soaring energy prices have dramatically shortened the ROI period for renewable generation assets from over 10 years to around four years .
The intermittency of renewables means that you will still need grid energy when your asset isn ’ t generating any power . Installing battery storage as part of the project will help you maximise the benefits and get as much free green power as possible . You may also develop an income stream from selling energy back to the grid .
Corporate power purchase agreement ( CPPA )
This is your second main option . This means buying power directly from renewable generators . The deal may be brokered by a supplier , but it is very different from a traditional supplier contract .
You almost always pay below market price for energy through a CPPA and the price per unit can be fixed for part , or all , of the contract . Having this agreed in advance protects your business from
INSTALLING BATTERY STORAGE AS PART OF THE PROJECT WILL HELP YOU MAXIMISE THE BENEFITS AND GET AS MUCH FREE GREEN POWER AS POSSIBLE .
market volatility and offers welcome budget certainty .
For an energy-hungry business like a data centre , investing in renewables is the obvious way to cut your costs and your carbon footprint . But making big choices in unchartered territory can slow you down . �
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