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Silicon Flash > Blog > Global Market > How data centres could help power their local community
Global Market

How data centres could help power their local community

Published April 20, 2025 By Juwan Chacko
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How data centres could help power their local community
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In the realm of energy efficiency, Kevin Stickney, Managing Director at Erda Energy, advocates for a shift in perspective when it comes to data centers. He believes that it’s time to transform these centers from energy consumers to local energy contributors.

Data centers play a vital role in our data-driven society, serving as the backbone for processing, storing, and transmitting information worldwide. However, the rapid growth of data centers has led to a significant increase in energy consumption. Despite technological advancements that have improved computing efficiency, the demand for data-intensive applications continues to outpace these gains, resulting in escalating electricity needs.

The urgency to address energy efficiency in data centers stems from both rising operational costs and the need to meet sustainability goals. While efforts have traditionally focused on integrating renewable energy sources to make data centers more sustainable, simply transitioning to green electricity does not fully address the broader issue. Therefore, there is a need to rethink the role of data centers and leverage technology to transform them into energy prosumers within their communities.

Challenges in energy consumption within data centers are evident, with projections suggesting that by 2026, data centers could account for 6% of the U.S. electricity market. The UK data center sector is also expected to grow to 6% of electricity usage by 2030. Factors driving this surge include the increasing demands of artificial intelligence and cryptocurrency mining, with Bitcoin mining alone consuming about 2% of U.S. electricity in 2023.

The heightened demand for electricity in regions with dense data centers has led to increased electricity prices and concerns about power infrastructure expansions. The primary energy-intensive components of data centers include cooling systems, IT equipment, and supporting infrastructure, which collectively contribute to their overall energy footprint.

See also  Data Center Outage Rates Reach Record Lows, According to Uptime Institute

To address these challenges, strategies can be implemented to reduce energy consumption and costs in data centers. Upgrading building facilities with electric heat pumps and geo-exchange solutions can enhance energy efficiency. Integrating energy storage systems and advanced technology to harness wasted heat can further optimize energy use. Additionally, utilizing AI, machine learning, and smart grids can lead to real-time energy optimization and dynamic energy management.

Data centers can also tap into thermal energy networks by leveraging the Earth’s natural heat to provide heating solutions to nearby buildings. By establishing a symbiotic energy relationship with the community, data centers can contribute to reducing unnecessary costs associated with operation.

As data centers expand to meet the demands of the digital economy, it is crucial for them to adopt sustainable solutions that address energy consumption and environmental impact. By reimagining their role as active contributors to local energy ecosystems, data centers can transition from being energy consumers to valuable contributors in their communities.

In conclusion, the transformation of data centers into local energy contributors is essential for long-term sustainability and environmental impact. By embracing innovative technologies and sustainable practices, data centers can play a significant role in shaping a more energy-efficient future.

TAGGED: centres, Community, data, local, Power
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