Powering the Future: The Quest for Clean Energy Amid Big Tech’s Data Center Boom

To review this article again, go to My Profile and then select View saved stories.

Purchasing through the links in our articles could result in us receiving a commission. Discover more.

Morgan Meaker

The Renewable Energy Challenge Hits Big Tech

From the shores of eastern Scotland, one can almost see the energy hunger of Big Tech being satisfied. Offshore, about 12 miles into the sea, stands a wind farm featuring 60 towering turbines, each with blades as long as a football field in the U.S. Initially, the utility firms involved in the Moray West project assured that this facility would produce sufficient electricity to supply 1.3 million households upon its completion. However, that was prior to Amazon's involvement.

In January, Amazon revealed it had secured an agreement for over half of the 880 megawatts produced by the site, in an effort to meet its ever-growing need for energy. As global corporations vie to establish the foundations required for artificial intelligence, wind farms in distant Scotland are proving to be crucial.

Last year, spending on new data center initiatives in Europe reached $79.4 million, as reported by the research company Global Data. Indications are that the demand for such projects is picking up pace in 2024. Microsoft today declared its plan to invest $3.2 billion in data centers located in Sweden. The tech giant had previously revealed its intention to expand its data center capacity in Germany twofold, in addition to committing $4.3 billion towards the development of AI infrastructure within data centers in France. Amazon has unveiled its strategy to establish a series of data centers in Brandenburg, Germany, with an investment totaling $8.5 billion, and it has also allocated an additional $17.1 billion for expanding its data center operations in Spain. Meanwhile, Google has committed $1.1 billion towards enhancing its Finnish data center, aiming to support AI development.

As major technology companies accelerate their efforts to construct additional data centers, there's a growing sense of urgency about securing sufficient energy to power them. Giants like Microsoft, Meta, and Google have committed to achieving net-zero emissions by 2030, while Amazon, known for its extensive logistics operations, aims for 2040. Over the last ten years, these corporations have aggressively secured agreements for renewable energy from sources such as wind and solar firms. However, these initiatives depend on electrical grids that are currently struggling to meet the rising demand for clean energy. This challenge is prompting these leading tech companies to contemplate the future of their energy consumption and explore the possibility of establishing their own independent power sources, effectively creating their own power networks outside the conventional grid.

"Colm Shorten, the senior director for data center strategy at JLL, a real estate services firm, highlights the need for the industry to explore new energy sources as the demand for power surges. He notes that data centers are progressively seeking direct power sources, including traditional options like gas or diesel generators, as well as more forward-thinking solutions like green hydrogen."

Data centers require electricity mainly for two reasons. Firstly, it's needed to operate the processors that allow computers to execute algorithms or run video games. Secondly, it's essential for cooling the servers to prevent them from overheating and malfunctioning. Efforts like employing liquid cooling techniques for processors rather than air are anticipated to achieve slight reductions in energy consumption. However, predictions by the International Energy Association indicate that the energy needs of data centers could potentially double by 2026, driven in part by the growing requirements of artificial intelligence.

Over the last half-decade, technology firms have increasingly engaged in aggressive acquisitions of renewable energy contracts, known as power purchase agreements (PPAs). These contracts allow operators of data centers to secure energy from renewable sources like wind or solar projects even before these projects are constructed. In Denmark, Meta has financed solar farms, while in Norway, wind farms have received funding from Google. Tech companies, being pioneers in these agreements, have played a significant role in the growth of Europe's now robust PPA market, according to Christoph Zipf, a spokesperson for WindEurope. Recently, Microsoft finalized the largest renewable energy transaction globally, securing a $10 billion agreement for clean energy across Europe and the United States.

However, renewable energy sources must still utilize the existing power grid, which is increasingly becoming a constraint, particularly in Europe. This is due to a wave of renewable energy providers attempting to connect to the grid to meet the rising demand for green energy across various industries. Meta's CEO, Mark Zuckerberg, forecasted on a podcast in April that "We're going to face energy limitations." Similarly, at Davos this year, OpenAI's CEO, Sam Altman, highlighted that the current energy supply system is insufficient to support the advancement of AI technology. He emphasized during a Bloomberg event, "There's no way to achieve this without a significant breakthrough."

Authored by Matt

Authored by Eric Ravenscraft

Article by Ryan Waniata

Authored by Dell

Grid managers are conveying a consistent message. Eirgrid, the national electricity supplier of Ireland, attributed its decision to halt new data centers in Dublin to issues with the grid capacity two years ago. Similarly, when Amsterdam's local government implemented a freeze on data center development, the Dutch Data Center Association, a trade organization, responded critically. They argued in a press release that grid limitations in North Holland are hindering the expansion of the data center industry.

As the quest for grid space intensifies, data centers are increasingly moving into less populated areas of Europe, drawing more attention and potentially sparking opposition from local communities. This shift is particularly noticeable in Germany, observes Simon Hinterholzer, a researcher at the Borderstep Institute for Innovation and Sustainability in Germany. "Previously, Frankfurt was the go-to location for the majority of new data center constructions," he notes. "However, this trend has significantly shifted in the last two to three years." He highlights the construction of a 300-megawatt data center in the small town of Wustermark and Amazon's recent expansion into Brandenburg, an area adjacent to Berlin that saw the installation of over 70 turbines last year, as key examples of this development.

As the demand for data centers increases due to the growth of AI projects, which now require up to 1 gigawatt of power, the industry is facing calls to become self-sufficient. Ricardo Abad, the initiator behind Quark data center, highlights a project in Spain, developed in partnership with an undisclosed company, aiming to produce its own electricity using solar and wind energy on-site. While such facilities remain linked to the traditional power grid, allowing them to distribute surplus energy, they possess the capability to function autonomously, according to Abad.

In the same year that Dublin declared limitations on data centers, Amazon inaugurated its biggest solar farm to date, located on the roof and parking area of its distribution center in Seville, Spain. The lead for Google's data center siting strategy in Europe has shown enthusiasm for incorporating renewable energy sources directly at the site of its upcoming data centers. Both Microsoft and Meta have refuted the existence of any completely off-grid projects under their operation. However, in Dublin, Microsoft is in the process of constructing a data center that will include a dedicated backup gas power facility, ensuring the center's operations can continue uninterrupted, even if disconnected from the main power grid.

Major technology companies are actively seeking innovative solutions in the realm of renewable energy, even if these solutions are still in the nascent stages of development. Kilian Wagner, a specialist in eco-friendly digital infrastructures from the German digital organization Bitkom, notes, "Emerging technologies such as state-of-the-art nuclear reactors, sustainable energy sources, and energy storage systems will play a pivotal role in achieving this goal." Sam Altman of OpenAI is among the investors in Helion Energy, a U.S.-based nuclear fusion enterprise. This company has also committed to supplying Microsoft with 50 megawatts of power from its inaugural fusion nuclear facility once it becomes operational. In pursuit of greener energy alternatives, Microsoft in the United States has been exploring the use of hydrogen fuel cells, promoting them as a viable option for zero-emission backup power.

The implications of server farms disconnecting from the traditional power grid remain uncertain for the general public. As major technology companies pursue independence in their quest for sustainable energy solutions, they stand to make significant breakthroughs. However, until they achieve this goal, they remain reliant on the existing power grid.

Recommended for You…

Delivered to your email: Will Knight delves into AI progress with Fast Forward.

Millions of deepfake videos are inundating voters in India

Incarcerated individuals acquired tablets only to discover an unfulfilled commitment.

The single factor limiting the progress of the heat pump

Eternal sunshine: Discover the top sunglasses for all your escapades

Steven Levy

Lauren Goode

The name refers

Dave Paresh

The text simply presents a name

Knight Will

Louise Matsakis

Lauren Goode

Additional Content from WIRED

Critiques and Manuals

© 2024 Condé Nast. All rights reserved. WIRED could receive a share of revenue from items bought via our website, as a result of our Affiliate Agreements with retail partners. Content from this website is not allowed to be copied, shared, broadcast, stored, or utilized in any form without explicit written consent from Condé Nast. Advertisement Options

Choose a global website