With digital transformation accelerating at an unprecedented pace, Bitcoin and other power-hungry cryptocurrencies back in vogue, and generative AI going mainstream, the environmental impact of data centres has come under increasing scrutiny.
Data centres are the backbone of our digital world. This infrastructure can help boost productivity and stimulate economic development for large New Zealand companies as well as the hundreds of thousands of small and medium-sized firms that make up most of our economy.
But data centres are also significant consumers of electricity and contributors to greenhouse gas emissions.
"As of today, the global data centre industry uses around 1.5% of the global electricity supply, with projections suggesting that this could easily increase to 8% by 2030," says Andrew Green, Datacom’s Director of Data Centres.
The largest source of emissions by far, around 70%, comes from using electricity to power data centres and the high-performance computer processors they host. The rest largely consists of diesel generation for backup power, and coolants used in air conditioning systems.
Aotearoa’s high proportion of renewable energy generation gives us an edge over other nations when it comes to running our data centres sustainably. But with the growing fleet of electric vehicles and efforts to electrify industry gathering pace, demand for green energy is growing swiftly.
With those challenges as the backdrop, Datacom is taking proactive steps to reduce the emissions footprint of its data centre operations so it can help its customers scale up their digital operations in a sustainable way.
Credit: Nine to Noon, RNZ.
To address the challenge, Datacom has enacted a plan to reduce energy consumption and minimise emissions from its extensive data centre infrastructure across New Zealand and Australia. This plan includes the following:
Boosting energy efficiency:
"We are fully in control of how much energy our facilities use overall in support of IT energy," says Green. One of the primary metrics used to measure data centre efficiency is Power Usage Effectiveness (PUE).
"PUE is calculated by taking the total site load and dividing it by the IT load. Nirvana for data centres would be a PUE of one, where the only energy use is for running the actual IT equipment,” Green explains.
“Our goal is to get as close to a PUE of one as possible, which would mean that the only energy used is for running the actual IT equipment."
Getting as close to one as possible involves making sure data centre supporting infrastructure, such as air conditioning and lighting are run as efficiently as possible. Optimising use of that infrastructure to achieve economies of scale is also important. Over time, the availability of more power-efficient processors and servers is also projected to save power.
Renewable energy integration:
Datacom is actively seeking ways to integrate more renewable energy sources into its operations.
"We recently concluded a negotiation with Mercury, our energy provider, to deliver a fixed price energy agreement for 10 years that included 100% certified renewable energy," Green says.
While the energy market in New Zealand means providers can't guarantee the delivery of electricity from renewable sources 24-7, 365 days a year, our agreement with Mercury supports significant reinvestment in renewable projects and increases the total renewable capacity of the grid.
Advanced cooling systems:
High-performance computer processors generate a lot of heat, which requires us to keep them cool. As such, cooling is a major component of data centre energy use. Datacom has implemented innovative cooling solutions to reduce this consumption.
“At our Kapua facility, we use an outdoor Air Side Economiser for the majority of our cooling. This allows us to significantly reduce energy use by our mechanical systems. We also use a closed-loop water cooling system to reduce water consumption,” Green explains.
By using outdoor air for cooling about 80% of the time, Datacom minimises the need for energy-intensive chillers.
Sustainable design and construction:
The design and construction of data centres play a crucial role in their environmental impact. That’s why we build energy-efficient facilities from the ground up.
“Design is critical in establishing a culture of sustainability at a data centre. Hyperscale facilities have a significant advantage when it comes to leveraging economies of scale,” Green notes. For example, the Kapua facility is capable of delivering the same services as around 1,000 individual two-rack server rooms but with much lower emissions. With scale comes energy efficiencies that DIY on-premise data centres just can’t match.
The Kapua data centre currently operates at an average PUE of around 1.3, which Green says will continue to improve as more customer load is added to the site. With a large data centre requiring an investment of at least $60 million to build, as well as significant operational costs, it's crucial that both environmental and commercial sustainability are incorporated into design and construction, on behalf of both Datacom and our customers.
Recycling and waste reduction:
“We enable onsite recycling on behalf of our customers, and everything that we can recycle, we do recycle, from cardboard boxes to excess power cords to old IT equipment,” Green says.
This commitment extends to using low or no environmental harm products for other consumable resources needed to run the sites.
Datacom's efforts are already yielding significant results.
“We have achieved a 16% year-on-year reduction in our carbon footprint and a 34% reduction on our 2020 base, meaning we are well on track to become net carbon zero by 2030,” Green points out.
But challenges remain, including finding cost-effective and reliable replacements for key supporting infrastructure like diesel generation for backup power. It requires a commitment to continuous improvement.
"The best data centre operators regularly review every decision they make as industry norms change and new technology becomes available to us," Green emphasises.
This includes undertaking certifications such as ISO 27001, which indicate a constant review of the impact of their decisions and the exploration of new options.
As the demand for digital services continues to grow, the environmental impact of data centres will remain a critical issue. But Datacom is demonstrating that it is possible to balance the need for robust, reliable data centre services with a commitment to sustainability.
By continuously validating and improving their operations, integrating renewable energy, and focusing on energy efficiency, Datacom is setting a benchmark for the industry and contributing to a more sustainable future.
In Green's words, “Every incremental difference we can make matters. As an industry, we ask ourselves these questions constantly and believe that everyone can play a part in reducing the impact of our use of technology.”
