European data centers must postpone carbon reduction targets and reconsider sustainability plans
- CO2 reduction timelines are increasingly being pushed back for European data centers
- According to the report, commercial viability comes first, as environmental objectives are secondary
- Aggreko suggests the need for strategic partnerships between companies and energy suppliers
Data centers are among the largest energy consumers in Europe and face unique challenges in achieving net zero targets.
From a recent study by Aggreko Discovered volatile energy costs and grid instability are causing data center operators to reconsider their carbon reduction timelines.
Of executives surveyed, over 90% have adjusted their net zero targets, with half of them extending their deadlines due to these ongoing energy-related challenges.
Decentralized energy solutions are gaining popularity
For many data centers, achieving sustainability goals requires a balance between environmental goals and economic feasibility, especially as energy prices continue to rise.
In response to these energy challenges, data centers are increasingly adopting decentralized energy solutions to reduce grid dependence and improve resilience. The report claims that 87% of European executives are already implementing some form of decentralized energy, while 54% plan to expand these systems.
The move toward decentralization allows data centers to maintain operational stability while reducing dependence on traditional power grids, which are often unpredictable and expensive. But even with decentralized systems in place, data center leaders are reluctant to fully pursue ambitious decarbonization timelines given current economic constraints.
The situation is risky for business leaders because despite the urgency of environmental goals, cost and commercial viability remain the top priorities for data center managers. Only 12% of CEOs see speed of decarbonization as their main objective, while the majority prioritize reducing energy costs and gaining a commercial advantage.
Because data centers operate on tight profit margins, any investment in sustainable practices must demonstrate a clear return on investment. For many in the sector, this balancing act between sustainability and financial stability is proving complex, as there is limited capital available for large-scale green initiatives.
A key risk identified in the report is the role of supply chains in slowing the energy transition. Nearly half of executives surveyed consider supply chain issues to be a major barrier, while 21% consider it their top concern.
As supply chain disruptions continue, securing the technology and resources needed for sustainable upgrades has become a huge challenge. This uncertainty adds another level of difficulty to achieving net zero, especially as data centers attempt to use low-carbon energy sources.
To overcome these challenges, Aggreko recommends strategic partnerships between companies and energy suppliers. By working with energy experts, data centers can better assess options such as energy-as-a-service models and power purchase agreements that provide flexible, lower-risk alternatives to traditional energy purchasing. These partnerships allow data centers to explore innovative energy strategies without overextending themselves financially, a critical approach to achieving both short- and long-term sustainability goals.
While current conditions make it difficult to achieve rapid decarbonization, the report suggests that data centers remain committed to sustainability. With 80% of CEOs planning to increase investment in energy solutions, even incrementally, there is optimism about further progress. By taking a balanced approach that reflects economic reality, data centers can move toward a sustainable future while managing the operational demands of today’s market.