Future-proofing data centers: How to design with sustainability in mind

The need for data centers has risen significantly in the last few years, driven by increased demand for high-speed streaming, the rise of remote work, and the dramatic market response to artificial intelligence (AI).

This trend is particularly relevant for the US, which makes up more than 30% of the global data center market. In the last two years, the number of data hubs in the US has doubled (from 2,700 to 5,400), and the energy demands from these assets have increased by 30%. The demand for data centers globally is expected to double by 2030.

With this accelerating demand, developers are focused on getting these assets online as quickly as possible. However, a long-term view of these assets is critical as a data center often lasts 10 to 15 years. By designing with sustainability in mind, developers can directly impact the asset’s performance over its lifetime.

Why do data centers need to be designed with sustainability in mind?

A data center that is designed for sustainability can add value by:

• Reducing operating expenses, such as utility bills and waste-related expenses
• Minimizing regulatory penalties, including fines for non-compliance
• Improving resilience, reducing risk, and lowering capital expenditures

Over 50% of data center operating costs are related to energy usage, and any actions that reduce energy consumption can significantly impact the bottom line. As a result, data centers with higher energy efficiency and lower water usage benefit from lower annual operating costs.

For example, Google invested an additional $25,000 to optimize airflow and reduce air conditioning usage in a smaller networking room, similar to a small- or medium-sized data center. This investment resulted in savings of $67,000 per year in energy costs, a 2.7x return on investment payback in the first year. Although done as a retrofit, integrating such actions into the design can help further reduce investment and ensure lower operating costs over the lifetime of the data center investment and ensure lower operating costs over the lifetime of the data center.

Data centers designed with sustainability in mind also have reduced risks associated with future changes to regulatory requirements (i.e., fewer potential fines). Although most jurisdictions in the US do not yet have specific data center laws, a different regulatory environment appears to be on the horizon.

The European Union has already passed regulations requiring data centers to track and report key sustainability indicators, which could eventually reach the US. In addition, Virginia, one of the largest US data center markets, recently proposed an efficiency bill that would require data centers to meet power usage effectiveness (PUE) standards and procure renewable energy to qualify for tax exemption credits. Data centers designed with sustainability in mind can avoid significant changes to operations if more stringent regulations are passed in the future.

Finally, designing for sustainability can help mitigate other risks and improve performance. This can start as early as site selection – developers should consider factors like the likelihood of extreme climate events, the frequency of grid outages, and the availability of power sources when deciding where to build a facility. In addition, facilities can be designed to minimize impacts from climate-related events (i.e., flooding, extreme storms, droughts, extreme heat). For example, facilities could have redundant cooling systems or be reinforced to withstand high winds or flooding. These resilient data centers will be better prepared when a disaster strikes – and can avoid costly downtime, repairs, or upgrades.

In addition, with a growing stakeholder focus on sustainability and improvements in technology innovations making it easier to be efficient, the data center industry is already driving toward sustainability. Proactively engaging community stakeholders and regulators to incorporate sustainability innovation early in the site selection and design process can make data centers “better neighbors” and reduce the friction (time and cost) to secure licenses to operate.

Building the digital infrastructure for the 21^st-century economy is all about sustainable acceleration and scale, so community support is mission critical. Some analysts predict up to 75% of IT organizations will start implementing data center sustainability initiatives by 2027. Data centers that do not incorporate sustainable design risk being uncompetitive in the future.

How should data centers be designed to be future-proof?

Although many key aspects of sustainability are increasingly relevant to data centers (e.g., biodiversity), five key topics are essential during data center design.

> Click here to learn more: How should data centers be designed to be future-proof?

What should companies do next?

If you are thinking about building a data center for the future or completing a major renovation on an existing facility, now is the time to consider how to integrate sustainability into your process. Sustainably designing a data center can help reduce operating costs and risks, improve performance, and future-proof your investment.

Ramboll can help

We help guide data center projects from site selection through design, build, license, operation, and decommissioning. Our experts have experience spanning the full lifecycle for data centers around the world, helping advance clients on the path toward sustainability.

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