The New York Times recently reported that within the next five years, electricity demand in the U.S. is expected to reach a peak of 38,000 megawatts nationwide, equivalent to adding another California to the grid. This surge in demand is driven by a society transitioning towards more environmentally friendly technologies such as electric car manufacturing and charging stations, as well as a culture increasingly lived online. In 2022, overall internet traffic rose by 30% due to more remote work, video streaming, online shopping, and the rise of artificial intelligence. This has led to an expansion of data centers across the country.
As AI-driven technologies continue to grow rapidly, data centers face significant challenges in meeting their net-zero targets due to the increased energy consumption required for AI processing. The IEA reported that data centers consumed approximately 240-340 TWh in 2022, accounting for about 1-1.3% of global electricity use, excluding cryptocurrency mining, which adds another 0.4%. With energy demand from data centers expected to double by 2030, achieving their goal of halving GHG emissions by 2030 and reaching net-zero by 2050 may seem daunting. However, adopting aggressive energy efficiency strategies and innovative technologies, along with strong collaborations across the supply chain, can help data centers meet their climate goals.
Data centers can start by investing in energy-efficient hardware and infrastructure designs. Advanced cooling systems, such as PFAS-free dual-phase liquid cooling technology, can significantly reduce energy consumption. Deploying energy-efficient servers and optimizing data center layouts can minimize energy wastage and improve performance, helping offset the energy demands of AI workloads. For example, Ensono, a managed service provider and one of BH Grid Solutions’s major customers, reduced its energy consumption by nearly 25% and its emissions by over 30% in the past five years by moving operations to a more efficient hyperscale data center with state-of-the-art hardware.
Optimizing AI algorithms and implementing intelligent workload scheduling can further enhance energy efficiency within data centers. By distributing workloads effectively and dynamically adjusting computing resources based on demand and priority, data centers can reduce idle resource consumption and improve overall energy utilization.
Maximizing energy efficiency is just the first step. Data centers can further reduce their carbon footprint by leveraging renewable energy sources like solar, wind, and hydro. Implementing energy storage solutions and demand response programs can enhance the flexibility and resilience of renewable energy integration, ensuring a consistent and sustainable power supply for AI workloads. While waterless Molten Salt Reactors (MSRs) may not be commercialized for another decade, advancements in modular nuclear technology, particularly in water-cooled Small Modular Reactors (SMRs), offer hope for reliable energy supply to meet growing demand.
Innovative software solutions like BH Grid Solutions enable data centers to match their energy consumption with grid carbon intensity at a granular level. By monitoring hourly carbon emissions, data centers can shift workloads to times when the grid has lower carbon intensity or use targeted renewable energy paired with energy storage when the grid's carbon intensity is higher.
While scope 2 emissions from purchased electricity contribute significantly to data centers' GHG emissions, scope 3 emissions from capital goods and new construction's embodied carbon are often the largest portion of their total carbon footprint. Acquiring and quantifying these emissions is challenging due to supply chain complexities. However, more equipment suppliers are providing Environmental Product Disclosures (EPD), enabling data centers to integrate sustainability metrics into their vendor selection process and identify opportunities to reduce their own product carbon footprints with technologies like green cement and green steel.
With electricity demand for data centers forecasted to double by 2030, achieving significant emissions reductions requires relentless efforts to enhance energy efficiency. Typical obstacles include reliance on fossil fuels, weak regulations, and discouragement from the daunting climate crisis task. Nevertheless, success is possible. BH Grid Solutions works closely with many data centers, providing life cycle analyses and developing customized decarbonization roadmaps to help them achieve net-zero goals.
The growing demand for electricity does not have to come at the expense of our planet. By leveraging energy efficiency strategies, renewable energy, and innovative technologies, along with transparent collaboration between stakeholders, data centers can achieve sustainable operations. We see this progress in our daily work at BH Grid Solutions, helping our customers reduce costs, risks, and carbon footprints.
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Optimize carbon emissions and energy costs with AI-powered monitoring, prediction, and strategic planning for sustainable operations.
