European data centers are having to delay carbon reduction goals and rethink sustainability plans udinmwenefosa@gmail.com (Efosa Udinmwen) | usagoldmines.com

• Carbon reduction timelines keep shifting forward for European data centers
• Report claims commercial viability comes first as environmental goals are secondary
• Aggreko suggests need for strategic partnerships between companies and energy providers

Data centers are some of the largest energy consumers in Europe, and are facing unique challenges in achieving net zero goals.

A recent survey by Aggreko found volatile energy costs and grid instability are prompting data center operators to rethink their timelines for carbon reduction.

Of the executives surveyed, over 90% have adjusted their net zero targets, with half of those extending their timelines due to these persistent energy-related challenges.

Decentralized energy solutions are gaining traction

For many data centers, achieving sustainability goals requires balancing environmental targets with economic feasibility, especially as energy prices continue to rise.

In response to these energy challenges, data centers are increasingly adopting decentralized energy solutions to mitigate grid dependence and improve resilience. The report claims 87% of European executives are already implementing some form of decentralised energy, with 54% planning to expand these systems.

The move toward decentralization allows data centers to maintain operational stability while reducing reliance on traditional grid energy, which is often unpredictable and expensive. However, even with decentralized systems in place, data center leaders are cautious about fully committing to ambitious decarbonization timelines given current economic constraints.

The situation is dicey for company executives, as despite the urgency of environmental goals, cost and commercial viability remain the top priorities for data center executives. Only 12% of CEOs ranked speed of decarbonization as their primary objective, while the majority prioritize reducing energy costs and achieving a commercial advantage.

As data centers operate on tight profit margins, any investment in sustainable practices must demonstrate a clear return on investment. For many in the sector, this balancing act between sustainability and financial stability is proving complex, with limited capital available for large-scale green initiatives.

A key risk identified in the report is the role of supply chains in delaying the energy transition. Almost half of the executives surveyed see supply chain issues as a significant barrier, with 21% ranking it as their top concern.

As supply chain disruptions persist, securing the technology and resources needed for sustainable upgrades has become a formidable challenge. This uncertainty adds another layer of difficulty to achieving net zero, particularly as data centers attempt to source low-carbon energy options.

To navigate these challenges, Aggreko recommends strategic partnerships between companies and energy providers. By collaborating with energy experts, data centers can better assess options like energy-as-a-service models and power purchase agreements that offer flexible, lower-risk alternatives to traditional energy procurement. These partnerships enable data centers to explore innovative energy strategies without overcommitting financially, a crucial approach for achieving both short- and long-term sustainability goals.

Though current conditions make it difficult to achieve rapid decarbonization, the report suggests that data centers remain committed to sustainability. With 80% of CEOs planning to increase investment in energy solutions, even if only incrementally, there is optimism for continued progress. By adopting a balanced approach that aligns with economic realities, data centers can move towards a sustainable future while managing the operational demands of today’s market.

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