ANNUAL REPORT
About AnnualReport2023-2025outlnesactivtes,strateges,and accomplishmentsoftheNetZero nnovationHubsnceitslaunch nSeptember2023throughFebruary2025
Opinionsinguestarticlesdonotnecessariyreflecttheopinions orvewsoftheHubasawhoenortheopinionsorviewsof ts members
Theteam
AlbertoRavagni
ChristineKjærJacobsen
HenrikHansen
ThomasVolder
Contributors
AnnaBlomborg;AlfaLaval
DrewTurner;Danfoss
PaulLin RobertBunger,VictorAvelar;SchneiderElectrc nnioJenbacher
Thanksto
TheextendedCommuncatonteam
TheExecutiveboardofdirectors
CopyrightNetZeroInnovationHubforDataCenters2025
Theinformationprovidedinthispublication sforgeneralinformationa purposesonly Al informationis provided ngoodfath,however,wemakenowarrantyofanyknd expressorimpied regardngthe accuracy adequacy validty reiablity,avalabilityorcompletenessofanyinformationprovided nths pubication
Publicationdate4April2025
Contact info@netzerodatacenterscom
BOARD OF DIRECTORS
Theboardconsistsofelectedmembersof executivepartners DIETMARBARO Danfoss Chair SHENJACKSON Google Vice-chair
STATEMENT BY THE CHAIRMAN OF THE BOARD
DietmarBaro
Chair,NetZeroInnovationHub
VP,Solutions&Technology,DanfossClimateSolutions
ItisanhonortopresentthefirstannualreportfortheNetZeroInnovationHub(NZIH).Thisfirstyearhasbeen anexcitingjourneyofgrowth,innovation,andcollaborationtowardsoursharedvisionofanetzerofuture.
TheNetZeroInnovationHubwasfoundedontheideathat byworkingtogether,wecanaddresskeyopportunities andspeedupourindustry’sracetowardsNetzero.By bringingtogethersolutionprovidersandusers–thedata centers–wecanaddresskeysectoralchallenges together Thiscollaborativeapproachisessentialtoall processesinthehub.
Whiletheorganizationisstillgrowing,wehavemade progressinkeyareas,andthemainprojecttracks;Heat reuse,cleanonsitebackuppower,andScope3emissions, arewellunderway.
Theevaluationphasehasbegunforthefirstbatchof innovationssubmittedthroughthisRFI,withthegoalof preparingpilotsfortestingbytheendof2025.The collaborativeapproachusedtopreparetheRFI requirementsisanapproachwewillcontinuetoutilizein otherprojecttracks.
Wehavealsomadestridesinenhancingopportunitiesfor heatre-useacrosssectors,developingreferencedesigns, workingcloselywithutilitycompanies,andworkingon solutionsforintegratingwithdistrictheatingsystemsas wellasalternativeheatoff-takers.Inaddition,anewheat reusecalculatorsupportsthebusinessdevelopmentof heatreusecases.
WhenitcomestoScope3Emissions,decarbonizingthe datacentersupplychainisparticularlyrelevanttothe EuropeanGreenDeal bytacklingindirectemissionsfrom theproductionandtransportationofgoodsandservices usedbydatacenters.
Lookingahead,weremainsteadfastinourcommitment todrivinginnovationandfosteringcollaborationsthatwill acceleratethetransitiontoanet-zerofuture.
In2025,thetestingphaseforinnovativenetzerosolutions willkickoff.WeinviteyoutojoinusincreatingaEuropean networkoftestingsitestodriveinnovationandleadthe transition Together,wecanacceleratetheEuropeanDataCenter Industrytowardsanetzerofuture
THE NET ZERO INNOVATION HUB: ADDRESSING THE EVOLVING CHALLENGES OF DIGITAL INFRASTRUCTURE STATEMENT BY THE CEO
AlbertoRavagni CEO,NetZeroInnovationHub
TheNZIHwasestablishedtoaddressthegrowingtension betweenescalatingdatacenterenergyconsumptionand theimperativetoreduceenvironmentalimpact.
Compoundingthesechallenges,recentgeopolitical developmentshaveintroducednewconsiderations, particularlyregarding:
TheimpactofdigitalinfrastructureonEurope’s competitivenessandinvestmentclimate. Heightenedconcernsaboutsovereigntyandresilience inthefaceofenergyandsupplychaindisruptions
EnergyChallengesandGridConstraints
Accesstopowerhasemergedasthemostpressing challengefordatacenteroperators.Accordingtothe latestreportfromtheEuropeanDataCentreAssociation (EUDCA),75%ofoperatorscitepoweravailabilityastheir topconcern.Large-scalerenewableenergyprojectsand datacentersfaceprolongedgridconnectiontimelines. Meanwhile,Europe’spowergridinfrastructureisstruggling toaccommodatesurgingdemand,whichisalready exceeding20%oftotalconsumptioninregionslikeIreland andisprojectedtoreach5%acrosstheEU.
Thestrainongridinfrastructure,combinedwithincreasing competitionforrenewableenergyamongsectors,is promptingregulatoryscrutiny.
NZIHleadsaCoordinatedIndustryResponsetoevolving challenges
TheHubisnowpartoftheEuropeanTestingnetworkwith supportfromtheEuropeanCommission.Asadesignated TestingandExperimentalFacility(TEF)forAI,thehubhas accesstopublicfundingispositionedtoleveragepublic andprivateinvestmentsforcommercial-scale implementation
Wehaveassembledtop-tiertechnicalteamstodefine industry-relevantrequirements,todevelopinnovative solutions,andtoevaluateinnovationproposals
TheHubhasprovidedclearmarketsignalstoinnovators, acceleratingtheindustrializationofcleanalternativesto dieselgenerators
Ourprojectworkisstructuredaroundhigh-impact innovationtracks:
CleanOn-SitePowerGeneration:theNZIHhas developeditsinnovationprocessandappliedittonetzerobackuppowersolutions.AnRFI(Requestfor innovation)hassuccessfullycompleteditsfirstphase.
Testingisplannedtocommenceatourpilotsitein Fredericia Denmark,in2025withsubsequent developmentphasesfocusingongridintegrationand large-scaledeployment,enabling24/7cleanpower solutionswithgridinteractioncapabilities.
HeatReuse:Advancingreferencedesignsand transaction-enablingtools,suchastheHeatReuse CalculatorandHeatReusePlatform tooptimizewaste heatrecovery
Scope3EmissionsReduction:EstablishingindustrywidemethodologiestoaddressScope3emissions acrossthedatacentersupplychain
PositioningDigitalInfrastructureIndustryasaPositive Contributor
DigitalinfrastructureisfundamentaltoEurope’seconomic, societal,andenvironmentalobjectives.Datacentersmust berecognizedasindispensableenablersofeconomic growth,sustainability,andtechnologicaladvancement.
Ensuringalignmentbetweendatacenterexpansionand net-zeroambitionsiscriticalforEurope’scompetitiveness, sovereignty,andresilience.
Thistransformationrequiresacoordinatedapproach amongindustrystakeholders policymakers,andenergy providers.Strategicinvestmentsingridmodernization, renewableenergyadoption,andregulatoryalignmentwill bekeytoachievingasustainabledigitalinfrastructure ecosystem.
PartneringforImpact
TheHubmembersandpartnersrepresentanallianceto realizetheambitiousindustrygoalsinarapidlyevolving environment
Weinvitestakeholdersacrosstheindustrytojoinusin drivinginnovationandachievingasuccessful,sustainable growthtrajectoryforEurope’sdatacentersector.
WHY NZIH?
‘AtGoogle,wehaveauniqueopportunitytohelpleadthetransitiontoamore sustainablefuturebymakinginformationaccessibleandbydrivinginnovationforward. Today,we’repursuingnet-zeroemissionsacrossouroperationsandvaluechainby2030, supportedbyanambitiousgoaltorunallourdatacentersandofficecampuseson24/7 carbon-freeenergyoneverygridwhereweoperate.
TheNZIHhasagoaltohelpthewiderdatacenterindustrydefineobjectivesto acceleratethegreentransitionofdatacentersandreducetheirenvironmentalfootprint.
Thehubbringstogetherkeystakeholdersinthedatacentersectortocollaborateon innovativesolutionsforenergyefficiency,cooling,supplychain,andgridimprovements. Andfocusondevelopingsolutionsthatlowercarbonemissionsandhelpstabilizethe electricitygrid.
I’mproudtobeapartofthisgrouponbehalfofGoogle,workingonsolvingcomplex challengesandbuildingbridgesbetweenseveralpartnersonthisjourneytowardsa moresustainableworld.’
Vicechair,NZIH DirectorofEngineering,Google ShenJackson
VISION & MISSION
OUR VISION
Toenabledatacenterindustrygrowthwithapositiveimpacton economy,environmentandsociety.
Weenvisiondatacentersoperating24/7oncleanpowerwithnet zeroornegativeGHGemissions,zeroorpositivewaterusage,and apositiveimpactonlocalcommunities.
MISSION
Bethecollaborativeplacewherecompetitorsjointlyaddress issueswhichcannotbesolvedindividually.
Bringtogetherdatacenteroperators,solutionproviders, innovators,start-up,R&D,academia,regulators,project developersandinvestorstode-riskinnovation.
De-riskinnovativesolutionsbyremovingtechnical,off-take, regulatoryandfinancialsrisks.
Deliverinnovativesolutionsreadytoscale-upinthecompetitive marketenvironment.
ABOUT THE HUB
TheNetZeroInnovationHubforDataCentersisacollaborationbetween Danfoss,Data4,Google,Microsoft,SchneiderElectric,Vertiv,andanumberof hubprojectpartners.
TheNZIHfosterscross-sectorcollaboration,bringingtogetherindustry leaders,innovators,energyproviders,investors,andpolicymakerstodevelop solutionsthataddressregulatory,environmental,andsecuritychallenges.
Whatwedo
Weoperateinthe‘collaborativezone’, selectingproblemsthataredifficulttosolveby individualcompanies. Wealignchallengesandindustrysolution requirements. Weidentifyandselectinnovativesolutions Wevalidateinnovativesolutionsatscale.
Wehandoverthede-risked,readytoscaleup innovativesolutiontothecompetitivezonefor commerciallift-off.
Weaccelerateinnovationbyremoving4risk categories
Wede-riskTechnologybyvalidatinginnovationat scale.
Wede-riskOff-takebysecuringtherequirementsfor industry-wideadoptionofinnovation.
Wede-riskRegulationbyprovidinginputstopolicy makersandselectingcompliantsolutions.
Wede-riskfinancingbysecuringprivateandpublic supporttotheinnovationscale-up.
WHY JOIN THE HUB?
ForDataCenterOperators:
Alignrequirementsfortheadoptionanddeploymentofinnovativesolutions. Accesstosharedinnovations,developdiversesupplychainforglobaladoption.
Bestpracticeexamplesofinnovationassubmitted,whethertobeprovidedto regulators,ortopubliclydemand
ForColocationCompanies:
Deployinnovativesolutionsincoordinationwithhyperscalersandfollowingtheir demand.
Implementsolutionstotheothermarketsegments,increasingefficiencyand decarbonization.
ForSolutionProviders:
Demonstrateinnovativeintegratedsolutions,evaluatenewtechnologieswithstart-up companies.
ForStart-upsandAcademia:
Securingoff-takeofinnovations,whichfulfilltheoperators'requirements.
Accesstopublicfundingfordevelopmentandfordeployingthroughtheoperators. Attractventurefunds/investors.
ForProjectDevelopersandInvestors:
Visibilityofoff-takeandadoptionofinnovativesolutions.
Vetting/duediligencetechnicalevaluationofinnovativesolutionsandstart-up companies.
ForRegulators:
Receivefeedback,inputsbasedonat-scaledemonstrationandvalidationaboutthe potentialofinnovationandabouttheneedoftheDCindustry.
ForCommunitiesandMunicipalities:
Attractionandsymbioticintegrationofdatacentersinthelocalcommunity Heatdecarbonizationwithdatacenterheatreuse(alsoforlocalutilities)
CROSS-SECTOR,PAN-EUROPEANAPPROACH.
Datacentersarefacingincreasedpublicscrutinyand politicalawareness.Moredemandsandlegislationis expectedoverthecomingyears,thatwillinfluencethe developmentandoperationofdatacenters dramatically.
TheHuboffersajointsetupforEuropeandatacenter operatorsandsupplierstoaddresskeychallengesina systematizedmethodology,scalethesolutionstothe wholeindustry,andpresentthemtothepublic.Thereby facilitatingafasterwaytonetzerofortheindustry.
Theneedforarapidsocietaltransitiontoazero-carbon economyalsoconcernsdatacenters.However the industryfaceschallengesthatcannotbesolvedby individualcorporationsalone Loweringenergy consumption,increasingefficiency,implementingheat reuse,balancingthegrid,ensuringbackupenergy supply,andaddressingsecurityissuesallrequirea systemicapproachtobeeffectivelyresolvedandto secureabrightfuturefordatacentersinEurope.
TheInnovationHub’smissionistoconnectEuropean datacenterswiththeenergyandutilitiessectors,to acceleratethecollectivejourneytowardsnetzero.
PROJECT TRACKS
HeatReuse
Thistracksaimstoprovidingheatreuse applicationsfordatacenterswhichgo beyonddistrictheatingandtosupport theseapplicationsbyproviding referencedesignsfor“heat-reuseready” datacenters. Providecommercialtooltodevelop businesscasesforheatreuse
Net-zeroBackupPower
Thistrackaimstovalidateclean back-upsolutionsasalternativesto Dieselback-up.
Nextstep:Evaluateon-siteclean powergenerationbeyondback-up
Scope3Emissions
Thistrackaimstoremovebarriers totheuseoflow-carbon materialsindatacenters.Focusis primarilyonconcreteandsteel.
GridInteraction
Newprojecttrackin2025: Evaluateandtesttheuseofonsiteenergysettoprovidegrid services.
DE-RISKINGINNOVATIONINTHEAI-ERA THENETZEROINNOVATIONPROCESS
TheAI-erarequiresanewapproachtoenablinginnovationatscale.TheNetZero InnovationHubde-risksinnovationbyremovingrisksrelatedtotechnology,off-take, businessmodels,regulation,andfunding.
TheNetZeroInnovationHub(NZIH)distinguishesitselfby developingandexecutingcollaborativeprojectsthatmitigate technological commercial financial andregulatoryrisks.
Advancedcleantechnologiesoftenencounterchallengesdue totheirnoveltyandtherisksassociatedwithearlyprojects
TheNZIHprocessconsolidatesandstandardizesthe requirementsofdatacenterindustryleaders,identifies innovativesolutions,andexecutesvalidationpilotprojectsat scale.Thisapproachleveragesbothpublicandprivate investments.
Byreducingrisksforinnovators,developers,andinvestors,the NZIHprocessaddressesthecatch-22dilemmabetween commercialprojectsandfunding.Thisensuresthenecessary investmentsaremadetoacceleratethepaceandscaleof innovationrequiredintheAIera.
TheNZIHprocessisappliedacrosskeyactivityareas,including HeatReuse CleanPower,andScope3Materials
AspartoftheNZIHinnovationprocess,RequestsForInformation (RFIs)areissuedbasedontheneedsidentifiedbyindustry leaders.
2023-2024
PROJECT TRACK: HEAT REUSE
AcceleratingdatacenterheatrecoveryinEurope
About
“Heat-ReuseReady”isbecomingakeydesignrequirementforEuropean DataCenters.Thegoalistodevelopreferencedesignsforheatreusethat canbeappliedtobothnewbuildsandretrofits,enablingdatacentersto transferexcessheattovarioususers.
Launchheatreuse calculator
Heat-reuse platform
Referencedesigns forheatreuse
HEAT REUSE PROJECT PARTNERS
HEAT REUSE: SCOPE & GOALS
WhyHeatreuse?
TapsdirectlyintoanyNetZerostrategy
TheEUTaxonomyurgescompaniestoreport theirenvironmentallysustainableeconomic activities.Energyisascarcecommodity. ThedatacentersectorintheEuropean Unionisexpectedtoundergonewand rigorousdirectives(EED)andpotentially regulationsintendedtoreducetheircarbon emissions.Adirectiveforreuseofdata centerexcessheatlaunchedin2022
KeyQuestionstoaddress
Howtoimplementreuseofexcessheatintothe designofnewandexistingDC’sifreliabilityisnottobe compromised?
Canloadshiftinggohandinhandwithheatreuse? Isreuseofexcessheatasoundinvestment?
StandardconditionsbetweenaDCandadistrict heatingcompany?
HowtooptimizeDCanddistrictheatingefficiencies?
WhattolookforduringDCsiteselectiontoexploit reuseofheat?
ShouldaDCchoosetodeliverlowtemperatureexcess heatorproducehightemperaturedistrictheating?
Ascreeningtooltoevaluatethebusinesscasefor reuseofheatfromadatacenter?
HEAT REUSE: PROGRESS REPORT
TheNZIHHeatReuseInitiativesareprogressingwell,withkeyadvancementsinoptimizeddesigns, expandingheatapplications,anddevelopingtheheatreuseplatform.TwoworkshopsinAmsterdamand oneinFrankfurtsawhighengagement,withAmsterdamhavingtolimitparticipantsduetooverwhelming interest.
byThomasVolder
ProjectLead,NetZeroInnovationHub
ThecontinuedeffortandcollaborationfromHubmembers andtheHeatReuseteamarecriticaltothesuccessofthe project,whichaimstoenhancesustainabilityandefficiencyin datacenters.
Updates&OperatorRequests
ReferenceDesign:Thefirstreferencedesignhasbeen completed,followingtheselectionofoneoftwousecases.
Heat-to-XExploration:Beyonddistrictheating,weare workingonHeat-to-Xalternativestoexploreinnovative heatreuseapplications
HeatReusePlatform:IncollaborationwithEUDCA
EuroHeat&Power andOCP theHubisdevelopingaheat reuseplatformandasimplifiedheatcalculator,now availableonlineatwww.netzerodatacenterscom.
OptimizedReferenceDesign
Optimizedreferencedesignsaredevelopedtoensureefficient heatreuse,estimatingheatdeliverycosts,emissions reductions andenergysavings.Severaldesignsareunder evaluation,tailoredtovariousapplications.
ExpandingHeatApplicationsBeyondDistrictHeating:Heatto-X
NZIHisexpandingHeat-to-Xapplicationsbeyondtraditional districtheatingtoincludeindustrialprocesses Thiswill maximizetheimpactofheatreuse.
HeatReusePlatform
TheheatreuseplatformbeingdevelopedwithEUDCAand EuroHeat&Powerwillmapheatsupplyanddemand,simplify contracts,andsupportbusinessmodels,makingheatreuse moreaccessible
NextSteps
Selectsitesforselectedscenarios.
ContinueevaluatingHeat-to-Xapplicationsand demonstrationsites.
OngoingcooperationwithEUDCA,EuroHeat&Power,and OCP Wewillpresentourresultsandnextstepsontheheat reuseplatforminAprilattheOCPSummit.
HEAT REUSE: HEAT REUSE CALCULATOR SUPPORTS HEAT REUSE CASES
TheNZIHheatreusecalculatorisprovidesanapproximatecostrangeforthe heatsuppliedbyadatacenter.
Nearly100%oftheelectricityconsumedbyITequipmentis dissipatedaswasteheat.
WasteheatfromEurope’sdatacenterscouldmakeamajor contributiontomeetingEuropesdemandforrenewableheat, providing221TWh/yearor12%ofthetotaldemand(EUDCA EuroheatandPowerreports).
Toengagepotentialusers,localutilities,andcommunities,itis usefultobeabletoaddressthiscommonquestion:
"Whatisthepriceofheatprovidedbydatacenters?Isit competitivewithinthelocalheatmarket?"
AbouttheHeatReuseCalculator
ThistoolwascreatedandverifiedbytheNZIHHeatreuseproject team.
Thistoolprovides: Acostrangebasedoninformedestimates.
Astartingpointforeconomicdiscussionswithinternaland externalstakeholders.
AccesstheNZIHHeat ReuseCalculator
HARVESTING HEAT: DATA CENTERS POWERING SUSTAINAB
NZIHworkgrouptargetstwodemonstrationprojectstoaccelerateheatreuse anddecarbonizationacrossEurope.
ArticlebyDrewTurner Director,SectorCouplingSolutions,Danfoss
TheNetZeroInnovationHub(NZIH)heatreuseworkgroup kickedoffitsmissioninFrankfurtinFebruary2024. Frankfurt amajorEuropeandatacenterhublocatedina countrywithnewlyestablishedheatreuserequirements, providedtheperfectbackdropforthisinitialgathering.
Theteamsobjective asdefinedbythehub,istodesign anddemonstrateastandardized repeatablesystemfor reusingdatacenterheat.Thissystemaimstoboostdata centerheatreusethroughoutEurope,benefitingboth membersandnon-members,includingsolutionproviders anddatacenteroperators.
Projecteddatacentergrowth–achallenge andanopportunity
TheNZIH'sfocusonheatreusestemsfromprojecteddata centergrowthandtheresultingincreaseinpower consumption.Thisgrowthpresentsbothachallengeand anopportunity.Thechallengeliesintheescalating electricitydemandsfromdatacentersandothersectors liketransportationandpower-to-xfuelproduction.The opportunity however,isthatdatacentersareideally positionedtotransformtheirpowerusageintoavaluable resource:heat.
Thisheatcanthenbeusedforheatingbuildingsand industries,contributingtodecarbonizationefforts.Therise ofAIandhigh-performancecomputingfurtheramplifies thisopportunityduetoincreasedpowerandheat generationdensity,aswellasastrongerbusinesscasefor heatreusethankstohighercoolingtemperaturesfrom liquidcoolingsolutions.
Identifyingtwotargetdemonstrationsfor heatreuse
TheFrankfurtmeetingbroughttogetherkeysolution providers,includingDanfoss(projectlead) Schneider Electric,Vertiv,AlfaLaval,andWilo,alongwithdatacenter companieslikeGoogleandData4.Followingthemeeting, solutionproviderscontinuedtocollaboratethroughbiweeklyprojectupdates.Thisledtotheidentificationoftwo targetdemonstrationsforheatreuse:
Thefirsttargetsanew,smaller-scale(~2MW)highperformancecomputingAIfacilityinnorthernor centralEurope integratingwitha4thgeneration districtenergysystem.
Thesecondfocusesonamoretraditionallarge-scale (~10MW),existingair-cooleddatacenter,repurposing itsheatforindustrialprocessesorfoodproduction.
Currently,theteamiscollaboratingwithdatacenter providersundertheNZIHleadershiptopinpointthefirst heatreusedemonstrationproject.Theaimistoselectand implementthisdemonstrationwithinthecomingyear.
REFERENCE DESIGNS FOR DATA CENTER HEAT REUSE
OCPrecentlyreleasedthepaper“ReferenceDesignsforDataCenterHeatReuse,”forwhichthe NZIHhasbeenakeycontributor. ThewhitepaperisbasedonthestrategicalliancepartnershipbetweentheOpenComputeProjectFoundation(OCP),thenonprofit organizationbringinghyperscaleinnovationstoall,aimedatdrivingforwardsustainableinnovationsindatacentertechnology,andNZIH, whichwasannouncedin2024.
ExecutiveSummarybyAnnaBlomborg, AlfaLaval
Almost100%oftheenergyusedbyserversinadatacenter isturnedintoheat.Heatreuseisdefinedasthebeneficial useofanyrecoveredheatfromthedatacenter.Tomake adatacenterheatreuseprojectpossibleweneeda combinationofthefollowing:
1.
Aheathost(alsoreferredtoastheheatenduser heat off-taker,heatreceiver,orheatconsumer)nearbythe datacenterarea,possiblyadjacenttoit.Ifthisisnot thecase,thecollaborationofautilitywillbeneededas medium(orasheathostitself).
Thiswhitepaperexplorescriticalconsiderations,design elements,andtechnologicaloptionssurroundingdata centerheatreuse.Asglobalenergydemandsand environmentalconcernsrise,thereuseofexcessheat fromdatacentershasemergedasapromisingsolutionto improveenergyefficiencyandsustainability.
Thewhitepaperdelvesintobothbusinessandtechnical aspects,beginningwiththeidentificationofkey stakeholdersandtheintroductionofaheatreusematurity modeltoguideorganizationsthroughvariousstagesof implementation.
2. Ideallytheheathostandthedatacenterhavethe sameownershipstructure;ifnot,thendifferententities mustbewillingtocollaborate.
4.
Atemperaturelevelthatisinterestingfortheheathost: optimallytheheatwillbedirectlyusedwithout transformation.
3. Finally,alegislativestructurethatencourages collaboration.
Fromadesignperspective thearchitectureofheat recoverystationsisoutlined,coveringessential components,connections,andlocationconsiderations whilealsoaddressingthecriticalimportanceofpower, network andcoolinginfrastructuresintheoverallsystem.
Thefocusonredundancyandresiliencyemphasizesthe needforreliableandsecuresystemsthatcanhandlethe uniquechallengesposedbyheatreuseinitiatives.
Additionally,retrofittingofexistingdatacentersto accommodateheatreuseisdiscussed,withattention giventohowdesignmodificationscanmaximizethe effectivenessofheatrecovery.
Thematchingofheatingdemand,includingseasonality andintradayvariations,isanotherfocalpoint,highlighting theimportanceofefficientheatstorageand transformationmechanisms.Theintegrationofheat pumps boilers,andheat-to-coolingorheat-to-power conversionsystemsdemonstratedtheversatilityofheat reusetechnologiesinvariousapplications.
Thepaperalsointroduceskeymetricstomeasurethe performanceandefficiencyofheatreusesystems, discussingtheimpactonPUE,WUEandCUEofheatreuse.
Overall,datacenterheatreuserepresentsasignificant opportunityforbusinessestoreduceenergywasteand contributetobroadersustainabilitygoals,incorporating intersectoralcollaboration.
However,successfulimplementationrequiresacareful balanceoftechnicalinnovation,stakeholdercollaboration, andadeepunderstandingofheatingdemandand systemdesign.Thispaperservesasaguideforplanning thespaceandshapeofapresentorfutureheatreuse projectandintroducesthetechnicalandmanagement staffinchargeofadatacenterdevelopmenttothe technicalchallengesandopportunitiesofit.
PROJECT TRACK: NET ZERO BACKUP POWER
About
Back-uppowerisanecessaryrequirementindatacenterdesignto guaranteeuptimeandresilience.Thesepowerfulandredundantenergy assetscaninstantlyandseamlesslytakeovertheentiredatacenterload, andtheyaretypicallyusedonlyintherareeventofagridfailure.
Thistracksaimstovalidatecleanback-upsolutionsasalternativestodiesel back-up.
TheNZIHBackupPowerprojecttrackishighlightedbytheRFIfornet-zero backupsolutionslaunchedinNovember2024,whichhasreceived22 detailedproposals
Hydrogen,RenewableNaturalGas,andMethanolareamongthecleanfuels beingconsidered,alongsideInternalCombustionEngines,Turbines,Linear Generators,andFuelCellsaspotentialconversiondevices.
Thenextareastobeaddressedinthisprojecttrackare: onsitecarbonfreepowergenerationtoovercomethecurrentlonglead timestoobtaingridconnection,and Gridintegrationandflexibility:theuseofthedatacenterenergyassets todelivergridservices.
LaunchRFI:NetZero back.uppsolutions
CLEAN BACKUP POWER PROJECT PARTNERS
NET-ZERO BACKUP: SCOPE & GOALS
WhyNet-ZeroBackup?
InEuropealone,25GWofnewdatacenterscould bebuiltby2030.Back-uppowersystems representaformidable,unutilizedpotentialforthe Europeanelectricsystem.Theycouldprovide flexibility,stabilizethegridandsupportthegrid connectionofintermittentrenewableenergy sources.
KeyQuestionstoaddress
IdentifyandValidateAlternativeBack-UpSolutions
EnsureScalabilityandReliability
SupportDecarbonizationandSustainability
TargetNetZeroScope1emissionswithatleast 80%reductioncomparedtofossil-fuel alternatives.
Assessfullenvironmentalimpactthroughlifecycleanalysis(LCA)andmaterialreporting.
Minimizewaterconsumptionandother ecologicalfootprints.
OptimizeEconomicandCommercialViability
EnhanceGridandMicrogridIntegration
WHY NZIH?
OurparticipationintheNetZeroInnovationHub's RFIforhydrogenbackupgenerationreflects Microsoft'sdedicationtosustainabilityand innovation.Byworkingtogetherwithindustry leaders,weaimtosendastrongmarketsignalthat thedemandforcarbon-freebackupsolutionsis notonlypresentbutalsoimperative
NET-ZERO BACKUP: SUCCESFUL LAUNCH OF RFI
InDecember2024theNetZeroInnovationHub(NZIH)initiatedaRequestforInformation(RFI)to exploreinnovative,scalable,andNetZerodatacenterback-uppowersolutions.Thegoalisto findalternativestodieselgeneratorsthatcansupporttheenergyneedsofdatacenters,aiming toreplacetraditionalfuel-basedpowersystemswithcleaner,sustainabletechnologies.
byThomasVolder ProjectLead,NetZeroInnovationHub
TherehasbeenanoverwhelmingglobalinterestintheNetZero InnovationHubs(NZIH)RequestforInformation(RFI)forNet Zerodatacenterback-uppowersolutions
Atotalof80companiesrequestedaccesstotheRFI, highlightingthebroaddemandforinnovative,sustainable technologieswithintheindustry.Fromtheserequests,22highly detailedproposalshavebeenreceived,showcasingvarious cutting-edgetechnologies.
Thegeographicalspreadofresponsesrevealsa50%European, 45%U.S.,and5%fromtherestoftheworld,emphasizingthe globalinterestinimplementingcleanback-upsolutionsinthe datacentersector.Thisstronginternationalresponse demonstratestheneedanddesireforscalable NetZero solutionsacrossdiversemarkets.
TheresponsesalsorevealacleardemandforanoncompetitivefacilitatorlikeNZIHtosupportthetesting,validation, andscalingofthesesolutions.Ithasbecomeevidentthat industryplayersneedaneutralentitytohelpdriveinnovation andensurethattheseemergingtechnologiesarereadyfor widespreadmarketadoption NZIH’sroleinfacilitating collaboration,reducingrisks,andacceleratingthedeployment ofthesesolutionsiscriticaltomeetingthedatacenterindustrys sustainabilitygoals.
AlbertoRavagni CEOofNZIH,stated:"I’mreallyexcitedtosee thisoverwhelminginterestinourRFIoncleanback-uppower.I canalreadynowrevealthatsomeofthereceivedsolutionswill betestedandvalidatedin2025."
SolutionScope
TheRFIseeksintegratedback-uppowersolutions connectedtodatacenterelectricalsystems.Proposals mayincludeentiresystemsorinnovative subsystems/components Ifasubsystemisproposed the detailsmustoutlineitsboundariesandinterfaceswith datacenters asthiswillbenecessaryforcost comparisonsandevaluatingcollaborationneedswith integrators.CurrentsolutionsincludeUPSsystemswith batterystorage,whichprovideinstantaneouspowerwhile dieselgeneratorsstart.Solutionsthatincorporatelongtermbatterystoragetoreplacefuel-basedgeneratorsare alsowelcome.
TechnologyandCapacity
ThesolutionsshouldmeetaTechnologyReadinessLevel (TRL)of6orabove,meaningthetechnologyshouldhave beendemonstratedoutsideofalabsetting,evenifnotyet widelycommercialized.Thesystemmustsupport40-50 MWofpowerdemand withscalabilityto300MW-1GWfor futuregrowth.Modulardesignswithback-upmodulesizes rangingfrom2-10MWarepreferred.Thebackupsystem mustensure99.999%availabilitywithappropriate redundancymechanismsforreliability.
Service,Maintenance,andResponse
Theback-upsolutionmustprovidedynamicresponsewithin 60secondstopreventanydatacenterdowntime.Information aboutservicelife,recurringmaintenanceneeds andstart-up timeshouldbeprovided.Thesolutionmustbecapableof indefiniteback-upduration,withtheabilitytorefuel.
SustainabilityandEnvironmentalImpact
ThesolutionmustmeetNetZeroemissionscriteria,withScope 1emissions(directemissionsduringoperation)targetingzero andaminimumof80%reductioncomparedtofossil-fuel generators Scope3emissions,whichincludeemissionsfrom fuelandequipmentproduction,mustalsobereported.Alifecycleanalysis(LCA)orbillofmaterialsmustbeprovidedto assessenvironmentalimpact Thesolutionshouldminimize waterusageduringitslifecycle.
CommercialRequirements
ProposalsmustprovideanestimatedTotalCostofOwnership (TCO)fora40-50MWdeployment,withscalabilityto300MW1GW.KeycomponentsincludeCapex Opex,andfuelcosts. Thescalabilityofthemanufacturingprocessandsupplychain mustbedescribed,withtimelinesfordelivering300MW/yand 1GW/y CompliancewithEuropeanpermittingandregulatory standardsisrequired.
GridandMicrogridIntegration
Proposalsshouldexplorethepotentialforprovidinggrid servicesandfunctioninginmicrogridsettings whetherin islandmodeorgrid-connectedmode.
WHY NZIH?
ByjoiningNZIH,Vertivprioritizescollaborationwith datacenterindustrystakeholderstoaddressgrid strainandpromoteenergyefficientsolutions.
Welookforwardtoworkingwiththisgroupin ultimatelyreducingtheenvironmentalimpactof criticaldigitalinfrastructureandinnovating opportunitiesthatleveragerenewableenergy integration.
Memberoftheboard,NZIH
SeniorVicePresidentInfrastructureSolutions,Vertiv ViktorPetik
INNIO GROUP AND NORTHC DATACENTERS
COMMISSIONED
FIRST
HYDROGEN-READY
EMERGENCY BACKUP POWER SOLUTION WITH ENGINES GLOBALLY
Lighthouseprojectcomprisesfirst datacenterworldwidewithgreen H2-enginesinthe1-MWclass SixJenbacherengines,each1MW, provideemergencybackuppower withgreenH2 Jenbacherhydrogenengines replacetraditionallyuseddiesel generatorsasemergencybackup solution
INNIOGroup’sJenbacher“ReadyforH2”engine technologyiscommissionedasanemergencybackup powersolutionforNorthCDatacenters’datacenterin Eindhoven Netherlands.SixJenbacherhydrogenengines willprovidecarbon-freeemergencybackuppowerin casesofelectricitygridoutages.TheJenbacherType4 dual-gasenginesgenerateatotalpoweroutputofsix megawattandhavebeendeliveredasacontainerized package.TheEindhovendatacenterincludingtheH2readyemergencybackuppowersolutionandtheon-site hydrogenstoragesolutionisagreenfieldproject.
“Weareexcitedandproudtohavebuiltthefirst100% greenhydrogenemergencybackuppowersolutionwith enginesfordatacentersgloballytogetherwithNorthC,” saidDr.OlafBerlien presidentandCEOofINNIO.“Asa carbon-freeenergysource,hydrogenisanimportant pillaroftheenergytransition.”
“WeselectedINNIO’sJenbachertechnologytosupportour greenhydrogenpoweredelectricitygenerationbecause oftheirlong-termexperienceandproventrackrecord withspecialgases,likehydrogen,”saidJarnoBloem,COO ofNorthCDatacenters.“WithINNIO’sJenbacherhydrogen emergencybackuppowersolutioncoupledwiththe renewablepowersourcesfromtheelectricitygrid,weare abletodecarbonizeourcompleteenergysupply infrastructure.”
NorthChasimplementedastrategytobefullycarbon neutralby2030.Thiswillbeaccomplishedthroughfive sustainabilitypillars:100%greenenergy modular construction,makingefficientuseofresidualheat, ArtificialIntelligence,andgreenhydrogen.TheEindhoven datacenterwillbepoweredwithsolarandwindenergy fromthegrid.
ToprovideadditionalflexibilityandsecuritytoNorthCthe sixJenbacherType4enginesareconfiguredasdual-gas engines Incaseofanelectricitygridoutagetheengines canoperatewithon-sitestoredhydrogen.Forlonger durationgridoutages,NorthCwouldhavetheoptionto switchtonaturalgasasanenergysourceduring operationoftheengines,incaseofshortageintheH2 supplyinfrastructure.INNIOGroup’smyplantPerformance cloud-baseddigitalplatformsolutionwillprovideNorthC secure,real-timemonitoringoftheemergencybackup solution.TheprojectsupportstheNetherlandsstrategyto achievecarbonneutralityby2050.
Customervideo
Joinusaswewitnessthefutureofenergy solutionswithourJenbacher H2-readytechnology Thisvideooffersa uniqueinsidelookatourFactory AcceptanceTest,conductedatourINNIO headquartersinJenbach,andmarksa majormilestoneinourpartnershipwith NorthC.
IMPLEMENTINGHYDROGEN-BASEDBACKUPPOWER SYSTEMS
Integrationinexistingheatandpowerinfrastructure
Datacentershavebeenadrivingforcebehindpositive changeinclimateprotectionoverthepastdecade Cloud computingplatformshavedonevaluablepioneeringwork intermsofsustainableoperationsandtheintroductionof renewableenergyintocompanies.
WHY NZIH?
DanfossjoinedtheNetZeroInnovationHub(NZIH)tocollaboratewithindustryleaderslikeGoogle Microsoft Data4,Vertiv SchneiderElectric,andotherprojectmembersondecarbonizingdata centers.
Weseeourmembershipasanopportunitytonotonlyreducetheenvironmentalimpactofdata centersbutalsotoinfluencingpublicpolicysupportingthegreentransition,andtocreatenew businessopportunitiesinthegrowinggreeneconomy.
Weareparticularlyexcitedaboutprojects,whichhavethepotentialtomakeasubstantialimpact onreducingcarbonemissionsandenhancingenergyefficiency,suchas
HeatReuseinitiative:Developingareferencedesignforcapturingandrepurposingexcessdata centerheat reducingenergyconsumptionandcarbonfootprint
Carbon-FreeEnergy:Exploringnet-zerobackuppowerandonsitecarbon-freepower generationtosignificantlyreducetherelianceontraditional,carbon-intensiveenergysources.
Scope3Emissions Decarbonizingthedatacentersupplychain particularlyrelevanttothe EuropeanGreenDeal bytacklingindirectemissionsfromtheproductionandtransportationof goodsandservicesusedbydatacenters.ThisisacriticalfocusforDanfoss
TheNZIHsfocusonrapid tangibleresultsmakesitcrucialfordrivingthegreentransition.Through theseinnovativepartnerships,westrivetorevolutionizedatacenterdesignandcontributetoa sustainablefuture.
DietmarBaro
Chair,NetZeroInnovationHub
VP,Solutions&Technology,DanfossClimateSolutions
PROJECT TRACK: SCOPE 3 EMISSIONS
About
Scope3emissionsrepresentupto98%ofthetotalemissionsfromdata centers.
TheScope3Emissionsprojecttrackexploresopportunitiesandremovesthe barriersfortheuseofgreenbuildingmaterialsindatacenterconstruction.
ThehubhasestablishedaScope3TechnicalTeamwhichiscurrently planningthenextstepsoftheprojecttrack.Activitieswillbestartedinthe contextoftheEuropeanGreenDealtodecarbonizecement/steelfordata centers.
Establishmentofscope3 technicalteam High-levelstrategiesfor reducingscope3
SCOPE 3 EMISSIONS PROJECT PARTNERS
LindaLescuyer Data4
PriyaChiiba Google
SebastianCruz-Mermy SchneiderElectric ShenJackson Google
ThomasVolder NZIH ProjectLead
ToddNoe Microsoft
DietmarBaro Danfoss
ViktorPetik Vertiv
STRATEGIES FOR REDUCING SCOPE 3 EMISSIONS
Scope3representsupto98%ofthetotalemissions.KeyEmission
CategoriesforDataCentersareupstream,accountingforover75% (includescapitalgoods(datacenterconstruction)andpurchasedgoods& services(serversandmaintenance) Meanwhile,lessthan1%is
Downstream(includescustomeruse,end-of-lifetreatment)
Introduction
TheNetZeroInnovationHubforDataCentershasinitiateddiscussionintheworktrackfor Scope3emissions
Strategies: Supplierengagement
Encouragesupplierstoprovideeco-designsolutions, Usesupplier-specificenvironmentaldataratherthanaverageemissionfactorsbased onthemonetaryvalueofgoods
Eco-DesignPractices
Selectlow-carbonmaterialssuchaslowcarbonconcrete
QualifyalternativeslikeSF6-basedtechnologies. PromotemodularcomponentstofollowDCrampup(reduceCAPEXinday1)
LifecycleThinking
Incorporatecirculareconomyprinciples:repairedorreusedequipment
Recycledcontentofequipmentandmaterial exemplecablesorsteelinstructure
Optimizedesigntominimizematerialusageandenergyconsumption.
WHY NZIH?
Data4isproudtobepartoftheNetZeroInnovationHub(NZIH),astrategicinitiativethataligns seamlesslywithourcommitmenttodrivingsustainabilityinthedatacenterindustry.
ThroughNZIH weaimtoacceleratetheadoptionofcutting-edgenet-zerotechnologiesandrefine ourpracticestoreducetheenvironmentalfootprintofouroperations.
TheNZIHprovidesavitalplatformforcollaboration.Byworkingalongsidestartups researchers,and globalindustryleaders,weaimtoco-createsolutionsthatdriveenvironmentalprogress For example ourongoingeffortstooptimizeenergyusethroughAI-basedsystemsforcoolingand predictivemaintenancehavealreadydemonstratedmeasurableimprovementsinenergy efficiency.Circulareconomypractices,suchastherefurbishmentandreuseofequipment,further highlightourcommitmenttoreducingwasteacrossthevaluechain
AspartoftheNZIH,weexpecttouncoverbreakthroughapproachesthatwillshapethenext generationofsustainabledatacenters,Byunitingwithforward-thinkingpartners wecan systematicallyaddresschallengesandscaleinnovationsthatbalanceenvironmental sustainabilitywithoperationalexcellence.”
Withmeasurableobjectives,transparentKPIs,andregularprogressreviews,Data4isnotonly committedtoreducingitsownfootprintbutalsotoenablingitsclients—cloudprovidersandAI leadersalike—tomeettheirenvironmentalgoals.Together,weareredefiningwhatitmeanstolead inanindustryatthecrossroadsoftechnologicalinnovationandenvironmentalresponsibility.
LindaLescuyer
Boardmember,NZIH
HeadofEnvironmentalandSustainableInnovation,Data4
QUANTIFYING DATA CENTER SCOPE 3 GHG EMISSIONS TO PRIORITIZE REDUCTION EFFORTS
Thefollowingisanexcerptfromthewhitepaper:QuantifyingDataCenterScope3GHG EmissionstoprioritizeReductionEfforts WhitePaper99,EnergyManagementResearchCenter
ByPaulLin,RobertBunger,VictorAvelar
Executivesummary
Moredatacentersaretransitioningtorenewableenergy sources.Asthishappens,Scope3becomesadata center’slargestcontributortogreenhousegas(GHG) emissions.Thiscategoryofemissionsisalsotheleast reportedandunderstood.QuantifyingScope3emissions isoneofthemostimportantissuestheindustryisfacing.
Inthispaper,weuseasinglehypotheticaldatacenterto demonstratehowtoquantifyScope3emissionsand identifythelargestemissionsources.Weprovidea calculatorthatestimatesadatacenter’slifecyclecarbon footprintandotherassessmenttools.Finally,wedescribe bestpracticesforreducingemissions.Thispaperandthe “DataCenterLifecycleCO2eCalculator”TradeOffTool markthefirstcomprehensiveattempttoquantifythe detailsdrivingScope3inanenterprisedatacenter.
Introduction
ThispaperismeantforanycompanythatusesIT resources,includingcompaniesinthedatacenter business(eg,colocationandcloudproviders)and enterprisecompaniesthatdependoncloud-basedIT resources.
Asthedatacenterindustrytransitionstorenewable energy,thefocusofcarbonemissionsturnstoScope3,the indirectemissionsfromadatacenter’svaluechain.
However,quantifyingandreportingonScope3presentsa significantchallengefordatacenteroperators Thisis mainlyduetoalackofthreeresources:reliablesupplier data,quantitativetools andanaccountingandreporting methodology.WP53,RecommendedInventoryforData CenterScope3GHGEmissionsReporting,proposesnine GHGemissionssourcecategoriesandtheirdatacenterspecificsubcategoriestodeveloptheinventoryforScope 3accountingandreporting.
Downloadthefullwhitepaperhere:
WithoutunderstandingScope3emissions it’shardfor datacenteroperatorstoprioritizetheircarbon-reduction effortsastheyneedanswerstoquestionslike:
Whatisthetotalcarbonfootprint(Scope1 2,and3)of mydatacenter?
DoesmydatacenteremitmorecarbonfromScope2 energyuseorembodiedcarbonof material/equipmentfromScope3supplychain?
Howmuchembodiedcarbonisinmydatacenter? Ofeverythinginmydatacenter,whatcauses(ed)the mostemissions?
WherecanIfindthedata/toolstoquantifymy embodiedcarbon?
Toanswerthesequestions itisimportanttoquantifythe carbonfromallemissionssourcesincludingdirect emissionsfromthereportingcompanyandindirect emissionsfromupstreamanddownstreamactivitiesas showninFigure1.
QuantifyingdatacenterScope3emissions
Inordertoprioritizeadatacentersemissions-reduction efforts,Scope3emissionsshouldbeasfamiliarascost andenergyefficiency(PUE).Webelieveunderstanding Scope3emissionsisthenextfrontierfordatacenter industrykeyperformanceindicators(KPIs).
Thiswhitepaperprovidesanin-depthlookattheScope3 emissionsofasinglehypotheticaldatacenter,toidentify thekeydriversofcarbon.Usingadatacenterlifecycle carbonmodel,weestimatetheScope1,2,and3emissions todemonstratehowthetotalcarbonemissionsand compositionchangeovertime.WethenbreakoutScope3 emissionsfromdifferentperspectivesincludingGHG sourcecategory1 lifecyclephase2,subsystem,etc.to identifythekeydriversofcarbonfromthevaluechain We alsoprovideusefultoolstohelpdatacenteroperators assesstheircarbonfootprint.Finally,weproposebest practicesforreducingScope3emissions.Akeyconclusion isthatsuppliersmustprovidedatacenteroperatorswith Scope3emissionsdata,relatedtotheproductsusedin theirdatacenters.
Inthissection wemodelahypothetical1-megawattdata centertoestimateitstotalcarbonfootprint(Scope1 2, and3) withafocusonScope3emissions.This hypotheticaldatacenteristreatedasanon-premise datacentertoisolatethequantificationofitscarbon footprint.Outofscopeforthispaperarecolocation& clouddatacentersandcloudservices,whichmust allocatecarbonbetweendatacenteroperatorsand tenantsorcloudusers.Consequently,GHGCategories8 (Upstreamleasedassets)and9(Downstreamleased assets)areexcludedfromtheestimatedScope3 emissions.ThoughwebreakoutthefootprintbyScope, GHGsourcecategory,lifecyclephase,anddatacenter subsystem,thesebreakoutsmaylookverydifferentfor yourdatacenter.Theseemissionsvarysignificantly dependingonmanyfactorsincludingdatacentersize redundancylevel,location,electricityemissionfactor,core &shellconstruction ITequipmentconfiguration,energy efficiency,equipmentlifespan&replacementfrequency, valuechainactivities,etc
Notethatwhilethereisuncertaintyinthemodel’sdata, ourintentistoprovideasenseforthemagnitudeand proportionoftheemissions.
Mainassumptions&methodology
1MWdatacentercapacity Tier3 50%loaded,based onareferencedesign3.
6kW/rackaveragepowerdensity
1.34averageannualPUE(N+1powerandchilledwater cooling)
0.511tCO2e/MWhaverageelectricityemissionfactor forU.S.4
ITserversandnetworkinggearare50%physically populated5
AllocationofITpowertoITequipment
Serversintegratedwithstorage-94%
Networkinggear-6%
Carbonintensityforservers6is5tCO2eperkWofIT capacity.Networkinggearisthesameastheservers.
Thecumulativecarbonfootprintofthedatacenterwas calculatedatyear1,5,10 15,and20toassessemissions trendsandcompositionbetweenScope1,2,and3,and otherperspectives.Althoughdatacentersreporttheir emissionsonanannualbasis(notcumulative), presentingthecumulativecarbonfootprintatvarious yearshelpswithtrendingandbenchmarking.See Appendixforafulllistofdetailedassumptions& methodology.
TheroleofdatacenterutilizationandITdemand
Forouranalysis,weusedahypothetical1megawattdata centerthatwas50%loaded.Weintentionallykeptthis fixedovertimetoshowtrendsmoreclearlyinembodied carbon.Buttheanalysisdoesnotshowtheeffectdata centerutilizationhasonembodiedcarbon.Themoreyou canloadanexistingdatacenter,youcanavoidordelay datacenterexpansion whichwillloweryouroverallScope 3emissions.Althoughthisisastraightforwardconcept,the datacenterindustrydoesnotalwaysperformwellinthis area.Thefinancialbusinessincentivestogetthemostout ofassetsmightbeenoughtooptimizethisaspectof carbonemissionsbutreportingonScope3willadd anotherdimensionoftransparencyandforcefurther improvements.
Utilizationproblemscanoccurinthefollowingareas:
Lowserverutilizationor“zombie”servers
Lowdatacenterfacilityloading
Strandeddatacentercapacityandunevenuseof capacities(i.e runoutofspacebeforerunningoutof power&cooling,orviceversa)
Thelowestcarbondatacenteristheoneyoudon’thave tobuild.Inotherwords,optimizingITdemandtoavoid over-buildingalsoplaysanimportantroleindatacenter carbonreduction.
Table3 Summaryoffindingswithproposedactionsfromthisstudy
Conclusion
Scope3emissionsarebyfarthemostchallengingto reportfordatacenteroperators.However,aswehave shown,Scope3ismajorsourceofemissionstodayand willbecomeanevenlargerpercentageofemissionsinthe future AlthoughreportonScope3sustainabilityisnota mandatoryrequirementyet,itisbeneficialfordatacenter operatorstounderstandthemajordriversScope3 emissionsfordatacentersindetail.Thispaperandthe “DataCenterLifecycleCO2eCalculator”
TradeOffToolmarkthefirstcomprehensiveattemptto quantifythedetailsdrivingScope3inanenterprisedata center.Wehaveintroducedaquantificationmodelto estimatetheScope3emissionsofahypothetical1MW datacenter.TheTradeOffToolbreaksdowndatacenter emissionsbyScopesandalsobyITattributesandphysical infrastructureattributes.Thenitallowstheusertodrill downintotheattributestogetdetailsforthespecific domainsthedatacenteroperatoridentifiesasareasof priority.Scope3variesinthelifecycleforITandphysical infrastructureattributes;thereforethetoolalsoprovidesa breakdownbyyeartoprovidedetailedexpectationsfor theintimaldeploymentandsubsequentyears.Thedata centeroperatorcanusethisforinitialunderstatingofthe driversaswellasareastotargetforreductionandthe timing.
Oncethedatacenteroperatorestimatesthecarbon footprintwiththeTradeOffTool,heorshecanformthe foundationforothersustainabilityfocusedefforts.The calculatorwillenablethemtostartusingcarbonaspart oftheprocurementprocessforexample.Theywillalsobe inapositiontoreducethetopcontributorstoembodied carbonwithdigitaltools.
Ouranalysisprovidedsomekeyinsights: Dependingonthecarbonintensityofpurchased electricity,Scope3emissionscanbethelargest contributortototalcarbonfootprint. Capitalgoodsisthelargestdriverofembodied carbon.
ThecompositionofScope1,2,and3variesthroughout thelifetimeofadatacenter.Scope1emissions representasmallpercentage(0.2-0.5%)ofthetotal carbonfootprintwhileScope2emissionsrepresent3161%.Scope3emissionsrepresent38-69%oftotal carbonfootprint.However,asthedatacenteruses morerenewableenergy,Scope2emissionscould representamuchsmallerpercentage.
Thetotalcumulativecarbonfootprintofadatacenter increasesyearoveryearduetocontinuousfuel (diesel)combustion,energyconsumption andvalue chainactivities.
Accordingtotheseinsights,werecommendactionsto reduceScope3emissions.Datacenteroperatorsshould integratesustainabilityintotheirevaluationcriteriawhen selectingdatacenterequipmentsuppliersandservice providerstominimizeScope3valuechaincarbon footprint Vendorsneedtocommittoreducingthe embodiedcarbonoftheirproductportfolio.Finally,data centerequipmentsuppliersmustmakeTypeIII EnvironmentalProductDisclosure(EPD)documentsfreely availableandeasilyunderstandablefortheirproducts.
WHY NZIH?
AtthetimeofAIacceleration,theDataCenterindustryhasthe opportunitytoharnessAI'scapabilitiestorevolutionizeenergy managementandputsustainabilitystrategiesintoaction.
TherearemainlythreeareaswhereAIcanbringimportantchangesand lowertheenvironmentalimpact:Directlyreducingcarbonemissions, Optimizingenergydemandtosmoothpeakusage,Overcomingbarriers tocleanenergyadoption.
TheNetZeroInnovationHubistheplaceenablingclosecollaboration betweenmultipleIndustryleaderstoputthesestrategiesinmotionand enableNetZerojourneyacrossScope1,Scope2andScope3 dimensions.
SebastienCruz-Mermy
BoardMember,NZIH
TechExploreLeagueLeader&
DataCenteroftheFutureProgramLead
PART 3 LOOKING TO THE FUTURE
2023-2024
HOW TO BUILD A SMARTER ENERGY FUTURE
AtGoogle,ourgoalistoachievenet-zeroemissionsacrossallofouroperationsandvaluechainby2030.We aimtoreduce50%ofourcombinedScope1,2(market-based),and3absoluteemissions(comparedtoour 2019baseyear)by2030,andplantoinvestinnature-basedandtechnology-basedcarbonremoval solutionstoneutralizeourremainingemissions.Ournet-zerogoalissupportedbyanambitiousclean energygoaltooperateourofficesanddatacenterson24/7carbon-freeenergy,suchassolarandwind.
Demandforelectricityisrisingacrosstheworld,drivenby therapidgrowthofmanufacturingandAI electrificationof buildingsandtransportation andtheongoing digitalizationofoureconomyandsociety.
Meetingthisgrowingdemandisoneofthekeychallenges ofourtimeandanenormousopportunitytobuilda smarterenergysystemthatbenefitspeopleeverywhere.In 2024,wepursuedarangeofactionstoprocuremore energyanddrivenewtechnologicalandmarket innovations—allwiththeaimofdrivingthesystems changeneededtomeetgrowingelectricitydemand affordably sustainablyandreliably
Herearesixuniquewayswayswemadeprogressin2024:
1.Anewelectricityratemodelwithutilities
Operatingoncarbon-freeenergyeveryhouroftheday requirestechnologieslikegeothermalandnuclearpower thatcanfillgapsinwindandsolargeneration.Butthese technologiesareoftencostlyandexistingmarketsdonot incentivizetheirdevelopment.That’swhywepartnered withNVEnergytoproposeanewcleantransitionratethat bringscorporatebuyersandutilitiestogethertounlock newinvestments.Thiswillmakeiteasiertodevelop projectsthatdeliver“clean,firm”capacitytothegridwhile ensuringtheircostsaren’tpassedalongtoother electricityconsumers Thismodelcanbereplicatedin additionalmarkets.
2.BuildingcleanenergyinAsiaPacific
Bringingnewcleanenergyonlineisparticularly challengingintheAsiaPacificregion,wherewindand solarresourcesarenotreadilyavailableinmanymarkets. Inadditiontoannouncinglong-termagreementsfornew cleanenergycapacityintheregion,wepartneredwith BlackRocktodevelopa1GWpipelineofnewsolar capacityinTaiwan.OurinvestmentinsolardeveloperNew GreenPowerwillhelpmeetGoogle’selectricitydemandin Taiwanandallowustooffersomeofthisnewcapacityto oursemiconductorsuppliersandequipment manufacturersintheregion.
3.Ourfirstadvancednucleardeal
Inadditiontocreatingnewmechanismstoaccelerate advancedcleanenergytechnologies,wearealso supportingthecompaniesdevelopingthesetechnologies andbringingthemtomarket.Ournew,first-of-its-kind partnershipwithKairosPowerwillunlockupto500MWof new cleanpowerfromaseriesofsmallmodularnuclear reactors.KairosPower’spassivelysafesystemand iterativedevelopmentapproachwillhelpbringdowncosts andensuremorecommunitiescanbenefitfromclean, reliablenuclearpower
4.Joiningforcestoscalereliable,advancedclean energytechnologies
Nocompanyalonecanadvancenewcleanenergy technologiesatthespeedandscalerequiredto decarbonizeglobalelectricitysystems.That’swhywe launchedanewinitiativewithMicrosoftandNucorto aggregateourdemandforadvanced,cleantechnologies likeenhancedgeothermal long-durationenergystorage, cleanhydrogen,andadvancednuclear.These technologiesarecriticaltoachievingfullydecarbonized, reliableelectricitygrids,buttheirearlystagedevelopment requiressignificantupfrontinvestment.Byworking together largecleanenergybuyerscanacceleratethe investmentsandmarketinnovationsneededtoscale theseessentialtechnologies.
5.Scalingprocurementinnovationtospeedupclean energydeals
Thisyear,weupscaledourfirst-of-its-kindprocessthat dramaticallyacceleratestheexecutionofpowerpurchase agreements(PPAs)withcleanenergydevelopers.The resultssincewestartedusingthisprocesshavebeen meaningful:we’vesignedcontractstopurchaseover3.3 GWofnewcleanenergygenerationcapacityacrossNorth AmericaandEuropeandwe’vecutthetimerequiredto negotiateandexecutethesePPAsbyroughly80%.
6.Reimagininghowwepowerourdatacentersthrough co-location
Werecentlyunveiledanovelstrategicpartnershipwith IntersectPowerandTPGRiseClimatetoco-locatedata centerswithnewcleanenergyintheU.S Bythoughtfully buildingdatacenterloadnexttonewadditionalpower generationwherepossible,we’llreduceboththetimeline tooperationandtheamountofnewtransmission required.Thismodelisanimportantcomplementto effortstounlockdevelopmentofnewtransmission infrastructureandoptimizeutilizationoftheexistinggrid.
Whilethediverserangeofactionswe’vetakenthisyear havehelpedadvancethenextgenerationofenergy solutions,there’smuchmoretobedone.Aswebuildon thisyear’smomentumintheyearstocome,wewill continuetorefineourapproachandpushforthe innovationsneededtocreatemorereliable,affordable, andsustainableenergysystems.
Whilethediverserangeofactionswe’vetakenthisyear havehelpedadvancethenextgenerationofenergy solutions,there’smuchmoretobedone.Aswebuildon thisyear’smomentumintheyearstocome,wewill continuetorefineourapproachandpushforthe innovationsneededtocreatemorereliable,affordable, andsustainableenergysystems.
NZIH EXTENDED COMMUNICATION TEAM DRIVES AND DELIVERS VALUE
Theextendedcommunicationsteamincludesrepresentativesfromeachof theexecutivemembers.Theteamworkstogethertoshareessential insightsfromhubinitiativesandprojectswiththeindustry,creatingand deliveringconcretevaluewhiledrivingthetwintransition.
KeyCommunicationinitiativescomingin2025and2026
NetZeroTalks
TuneintointerviewsandinsightsfromNetZeroHubmembersandexperts.
NZIHworkshops
ThehubhostsworkshopsthroughouttheyearandalloverEurope.Stayupdatedviathe calenderonourwebsite.
Whitepapersandpublications
Insightsandresultsfromprojectswillbepublishedasreportsandwhitepapers.Full accesstoinsightsisformembersonly butexecutivesummariesaresharedwiththe entireindustry.
Monthlynewsletters
Joinournewslettertostayupdatedonindustryinformation,upcomingeventsand networkingopportunities.
SpeakingandpartneringateventsacrossEurope
Ourexpertssharetheirknowledgeandinsightsatselectedconferencesandevents.Stay updatedviathecalenderonourwebsite. andgetintouchifyouthinkwecanbean interestingadditiontoyourevent.
BARBARASTEIGER Microsoft
MICHIELSALLAETS Google
LUCIJANAKASUMOVIĆ
Vertiv
MARIANNEREGAN
Danfoss
THANKS
For Your Attention