The rise in demand for data center usage in line with increasing high-performance computing and AI applications can create negative environmental effects. Finding solutions to increasing sustainability surrounding data centers and battery storage technologies that can remove some reliance on energy from fossil fuels has never been so relevant. IDTechEx's portfolios of Sustainability Research Reports and Batteries & Energy Storage Research Reports cover current trends in decarbonizing data centers and appropriately managing computing demands.
High data center demands and new sources of energy
Carbon emissions from data centers are at an all-time high, which comes as no surprise when considering the ever-increasing global demands for high performance computing and artificial intelligence applications, including large language models. Companies such as Microsoft and Meta are now striving to be carbon neutral or even carbon negative by 2030, meaning some changes will need to be made to current operations.
Despite high demand for data centers, which is only expected to increase over the next decade, construction has had to be somewhat slowed down due to the grid only being able to accommodate so much power demand, with more power access needed. These new power sources will ideally need to be from renewable sources to remain in line with decarbonization goals and to set the future up for more sustainable means of running data centers. IDTechEx's report, "Sustainability for Data Centers 2025-2035: Green Technologies, Market Forecasts, and Players", covers 10-year forecasts across emission reductions, power consumption, thermal design power, carbon credits, and carbon free energy usage.
IDTechEx identifies on-site off-grid projects, or microgrids, as one emerging means of potentially helping to meet power demands. Wind and solar energy are discussed by IDTechEx as being dominant sources of renewable energy for data centers, though while they are great options that can help to reduce fossil fuel reliance, there are difficulties in meeting constant, uninterrupted power demands due to their natural intermittency. The combination of solar and battery storage technologies is a likely option going forward, according to IDTechEx, while hydrogen fuel cells and nuclear modular reactors are also described as being able to provide means of renewable power generation that is potentially more stable and reliable.
Battery storage systems for data centers
Battery storage systems for data centers could help to alleviate pressure from the grid, while also providing means of backup power and an uninterrupted power supply to meet security and power demands. IDTechEx identifies one necessary use for battery storage systems being to manage AI computing fluctuations, as they could prevent the grid from experiencing higher continuous power strains during these periods.
The expectation is that battery storage systems installed for data centers will be cost-effective and a worthwhile investment, with it being paid off in just a few years. Large scale battery storage systems could even work alongside the grid by taking on excess electricity and supplying it to a data center when needed or back to the grid, bringing more of a flexible approach to power supply than is possible with just relying on the grid alone. The risks of degradation of lithium-ion batteries are something to be considered, as they will see frequent cycling, leaving possibilities for new technologies to be developed that might perform differently or with increased efficiency.
Some key drivers and opportunities within the current battery storage market worth noting include not only the demand driven by data centers, but also the scope for smaller players to enter the market due to unsaturated commercial and industrial market share and the opportunity for lithium-ion cells to be produced as economically in the US as in China, with the help of tax credits. IDTechEx's report, "Battery Storage for Data Centers, Commercial & Industrial Applications 2026-2036: Market, Forecasts, Players, Technology", identifies more of these drivers along with forecasts and main players operating within the sector.
For more information into sustainable data center developments and energy storage, visit IDTechEx's portfolios of Sustainability Research Reports and Batteries & Energy Storage Research Reports for the latest research across a variety of sectors.
