Andre Gargi at Hitachi Energy explores data centre operators as energy generators and describes how sustainability can be embedded across the supply chain

Data centres are already among the most resource-intensive facilities in the global economy. As AI adoption accelerates, the IEA expects data centre power demand to increase by 15% per year to 2030. At the same time, regulation, energy costs and customer scrutiny are rising. For operators, the question is no longer whether growth and sustainability can be managed separately. It is how to scale AI infrastructure without undermining margins, compliance or licence to operate.
That makes sustainability a boardroom issue as much as an environmental one. Accenture has found that organisations prioritising ESG can generate up to 2.6 times more value for shareholders than their peers. In a market shaped by volatile energy pricing, tighter reporting requirements, and increasingly climate-conscious customers, data centre operators are having to rethink how facilities are designed, built and run.
The good news is that the route forward is becoming clearer. Operators can reduce resource consumption and improve performance through a combination of efficient design, circular operating models, liquid cooling and renewable energy integration.
Designing efficiency into growth
Energy efficiency starts with infrastructure design. Modern data centres should be designed with energy optimisation as a core principle, not an afterthought. This means everything from server selection to cooling architecture to power distribution must be evaluated through an energy lens.
Physical infrastructure complements these digital systems. For example, we’re seeing data centre operators becoming energy generators, tapping into renewable energy sources. This is based on the natural resources available in each region – a hot climate is suited to solar panels, while Scandinavian data centres often use hydroelectric or geothermal energy. By deploying battery energy storage systems (BESS), they can address the intermittent nature of renewable supply.
Energy solutions also lend themselves to circular operating models. For example, batteries that no longer have sufficient capacity to be used in electric vehicles can be redeployed in BESS systems.
Next-gen data centre cooling
Cooling accounts for approximately 40% of data centre energy consumption. It’s also one of the areas where innovation is having the biggest impact. Traditional air cooling is being supplemented and, in some cases, replaced by liquid cooling solutions that can handle the extreme thermal loads generated by AI accelerators.
Liquid cooling isn’t just more efficient. It enables higher-density compute configurations that would be impossible with air cooling alone. This means more computing power per square meter, which translates to better land utilisation and smaller physical footprints. However, liquid cooling is resource intensive in its own way. According to the IEA, data centres’ annual water use will reach 1,200 billion litres each year by 2030, while building in water-scarce regions is projected to rise by 63%.
But cooling innovation goes beyond technology. It also involves rethinking cooling strategies holistically. This includes using outside air economisation when weather permits, optimising airflow to eliminate hot spots, and deploying AI-driven controls that dynamically adjust cooling based on real-time thermal loads.
A 360-degree approach
The secret to achieving sustainability goals is to consider infrastructure across its lifecycle. This starts with procuring systems that have certified sustainability credentials. Providers should be looking to reduce the emissions associated with the production, transportation, and installation, as well as operations and end-of-life recycling.
Waste reduction at the start of a lifecycle can be as simple as reducing packaging. Prefabricated systems that are assembled directly in racks avoid the need for excess material use. Equally, containerised solutions can simplify construction, while reducing infrastructure’s impact on land, local communities, and resources. These shifts might seem relatively minor. But if implemented across the entire value chain, these marginal gains make a real impact in waste and emissions reduction.
End-of-life considerations matter, too. Equipment should be designed for disassembly and component reuse. Materials should be recyclable. And operators should have clear partnerships with recycling facilities that can properly handle e-waste.
Turning sustainability into a business advantage
Sustainability is a complex challenge for data centre operators in the age of AI, but it should not be treated as a fixed endpoint. It is a process of continuous improvement. As new technologies emerge and best practice evolves, operators will need to keep testing where infrastructure can be made more efficient, resilient and commercially sustainable.
The data centres best placed for the next decade will be those that treat sustainability as a business differentiator, not a compliance exercise. Lower energy costs, stronger customer relationships and improved regulatory readiness all have a commercial value. By working more closely with energy providers, technology partners and adjacent sectors, operators can find practical ways to generate, store and use energy more sustainably.
Andre Gargi is Global Head of Data Centres at Hitachi Energy
Main image courtesy of iStockPhoto.com and imaginima


© 2025, Lyonsdown Limited. Business Reporter® is a registered trademark of Lyonsdown Ltd. VAT registration number: 830519543