As the energy demands of Big Tech surge with the advent of artificial intelligence (AI) and data-intensive applications, sustainability is becoming a crucial business differentiator for data centers seeking partnerships with major technology companies.

Today’s tech giants face mounting public scrutiny, as evidenced by Google’s recent admission that it is not on track to meet its net-zero goal by 2030. This heightened pressure is driving tech companies to seek data center partners that are not only operationally reliable but also aligned with aggressive decarbonization goals.

The numbers underscore the urgency for sustainability. According to recent research by STX Group, US data centers consumed around 150TWh of electricity in 2023 - equivalent to the annual energy usage of approximately 14 million households and 4 percent of the country’s total electricity generation​. Projections indicate that this demand could grow to a staggering 403.9TWh by 2030, which would represent more than 9 percent of US electricity consumption, enough to power 34 million households.

As data centers grow, so does their carbon footprint, posing challenges for Big Tech companies committed to reducing their Scope 1 and Scope 2 emissions. Partnering with sustainable data centers is essential for tech giants to meet these objectives.

In addition to environmental benefits, energy efficiency measures also offer significant financial advantages. By reducing energy consumption and relying on renewable energy sources, data centers can lower operational costs, improve profitability, and potentially qualify for incentives and rebates related to energy efficiency programs.

Sustainability as a competitive advantage

For data centers aiming to forge strong partnerships with Big Tech, embracing sustainability is not only about reducing environmental impact but also about remaining competitive. As noted in STX’s recent white paper, regulatory pressures on data centers are rising both domestically and globally.

In the US, states like California and New York are setting stringent emissions targets, while federal initiatives like the Data Center Optimization Initiative (DCOI) incentivize energy-efficient practices​.

The European Union’s Energy Efficiency Directive further exemplifies how international policies are pushing data centers toward transparent emissions reporting and reduced environmental impact.

These regulations are likely to expand, reinforcing sustainability as a must-have, not a nice-to-have, for any data center seeking a foothold in Big Tech’s supply chain.

Strategies to make data centers stand out

Data centers have multiple pathways to reduce their carbon footprint and appeal to eco-conscious partners.

One significant method is integrating renewable energy sources such as wind and solar into their power mix. US-based Renewable Energy Certificates (RECs) and Power Purchase Agreements (PPAs) offer practical mechanisms for data centers to secure cleaner energy sources, thereby reducing Scope 2 emissions.

Beyond green power, backup generation represents another area for emission reduction. Traditional diesel generators are carbon-intensive, but alternative fuels like biodiesel and renewable gas provide viable solutions.

For example, biodiesel reduces carbon emissions by up to 90 percent compared to conventional diesel, while renewable gas sources such as biomethane capture carbon from organic waste, further minimizing environmental impact​.

Cooling efficiency also plays a crucial role in sustainability. As data centers continue to densify, cooling requirements grow. Advanced methods like liquid cooling, which can significantly reduce energy usage, are essential to offset the carbon impact of high-density servers. Data centers located in regions with access to renewable energy or naturally cool climates, such as the US Midwest, hold an additional advantage, as they can maintain energy efficiency with lower emissions.

As the digital world expands, so does the responsibility of its infrastructure to operate sustainably.

Big Tech companies are under constant scrutiny to report their environmental performance and meet stringent sustainability goals, placing sustainable data center partners in high demand. By embracing decarbonization practices, data centers not only reduce emissions but also enhance their value to the tech giants that rely on them.

Sustainability is no longer a mere goal; it’s a competitive imperative. For data centers looking to position themselves as attractive partners to Big Tech, now is the time to invest in the practices that will future-proof both their business and the planet.