The data centre sector faces ‘significant sustainability challenges’ that require ‘immediate strategic action’ to ensure long-term viability, a new whitepaper by IQ-EQ, BuildingMinds, Norton Rose Fulbright and ULI has said.
The whitepaper, entitled Driving data centres – from environmental liability to sustainable powerhouse, found that data centres typically consume approximately 300,000 gallons of water every day for cooling purposes, equivalent to around 100,000 homes.
Recent reports have suggested that this water usage could rise to more than 1.7 trillion gallons annually by 2027, creating significant resource management challenges.
Global data centre power consumption, meanwhile, is expected to increase by 160% by 2030, driven primarily by AI applications. According to the whitepaper, this growth will require substantial new renewable energy infrastructure investments, estimated at $120 billion.
‘A pivotal moment’
“The data centre industry is at a pivotal moment where sustainability leadership will determine long-term competitiveness,” the authors state. “Organisations that proactively address these challenges through innovative solutions and strategic planning will be best positioned for future growth and regulatory compliance.”
Operational vulnerabilities are also highlighted in the report, with nearly half of data centre operators having experienced extreme weather events, prompting investment in climate resilience strategies.
As a result, institutional investors managing more than $70 billion in data centre assets are increasingly prioritising sustainability metrics in investment decisions, according to the whitepaper. The ‘green’ data centre sector is projected to grow from $81 billion in 2024 to over $308 billion by 2032.
‘Transform challenges into competitive advantages’
As the authors note, “This research provides a roadmap for the industry to transform challenges into competitive advantages.
“Success will require collaboration between operators, investors, regulators, and technology providers to build a more sustainable digital infrastructure foundation.” Read more here and here.
Read more: Water scarcity set to be a growing challenge for European data centres
