US data center operator Sabey Data Centers has commenced a pilot project testing the use of hydrotreated vegetable oil (HVO) as a diesel replacement for backup generators at its Austin data center.

According to the company, it is testing HVO as the primary fuel source in data center backup generators to determine its feasibility for broader use across the company's data center portfolio.

Sabey also said the pilot will determine how well HVO performs under real-world operating conditions. If successful, the company said it intends to expand its use across additional data center sites.

"For more than 50 years, Sabey has been building and operating infrastructure with the understanding that being a good neighbor is one of our most important responsibilities," said Casey Mason, director of Energy & Sustainability at Sabey Data Centers. "As technology evolves and the need for digital infrastructure grows, it's our responsibility to continue finding better ways to operate. We need reliable backup power, but we also want to explore how we can reduce its environmental impact for the surrounding community. This pilot is one step toward understanding how we can do both."

HVO is a low-carbon fuel that is derived from 100 percent waste-based feedstock. The fuel acts as a drop-in substitute for conventional diesel, and many diesel generators can run it without major modifications.

First announced in early 2022, the company launched the first phase of its SDC Austin data center campus in Round Rock in October 2024. The company broke ground on the campus's second phase in 2025, with the facility expected to have a capacity of 84MW across two buildings.

Several data center companies have deployed or piloted HVO fuels across their facilities. Most recently, in May, Bridge DC and renewable fuels firm EcoCeres completed an HVO pilot at Bridge's data center campuses across the Asia-Pacific region. Also, in recent years, AWS in Sweden, Vantage in Wales, and Stack Infrastructure in Norway have adopted the fuel for use in their backup generators.