As the digital economy expands, the role of data centres has never been more critical. They are the core infrastructure enabling cloud computing, AI, streaming, e-commerce, and enterprise connectivity. But with growing demand comes growing complexity, particularly in the areas of energy, water, and resource management.
Data centres are evolving rapidly. They are becoming larger, more distributed, and more performance-intensive. Yet their environmental footprint remains a pressing concern. The challenge, and the opportunity, lies in accelerating this transformation in a way that enhances sustainability without compromising performance or resilience.
A Sector on the Rise
The data centre market in the UK and Ireland is growing at pace, driven by increasing digitalisation, cloud adoption, and the emergence of AI technologies. Together, these forces are driving demand for computing power and connectivity, along with a stronger focus on energy use, water consumption, and environmental impact.
The rise of AI, high-performance computing and digital-first services is changing the game. But it's also fuelling momentum for a greener, more resilient option.
Data centres currently account for around 3% of global electricity use, with projections suggesting this could rise to 8% by 2030.
In the UK, data centres are estimated to use 12% of total electricity demand across London and the South East.
A typical hyperscale facility can use 1 - 5 million gallons of water per day for cooling, the equivalent of a small town's daily supply.
Decarbonising Power and Cooling
Efforts to reduce carbon emissions are accelerating through:
On-site generation, including combined heat and power (CHP) with Carbon Capture technology, solar Photovoltaics (PV) and Battery Energy Storage Systems (BESS)
Waste heat recovery to create or support local heat networks or offset cooling needs
Smart energy management using real-time monitoring and AI analytics.
Advancing Water Stewardship
With water scarcity concerns increasing, data centres can invest in:
- Closed-loop cooling systems to significantly reduce usage
- Recycling and reuse technologies, including greywater treatment
- Real-time water monitoring to detect losses and optimise flow
- Local water resilience strategies, especially in drought-prone areas
Embracing Circular Resource Management
Sustainability doesn’t stop with power and water:
- Secure disposal of confidential waste and IT assets
- Recycling of electronic waste, batteries, and hazardous materials
- Critical raw materials recovery through circular economy models
- Zero-waste-to-landfill strategies with full compliance
Digital Growth with Environmental Intelligence
As demand for digital services accelerates, so does the need to ensure infrastructure keeps pace, not solely in performance but in environmental stewardship. Whether through smarter design, advanced technologies, or holistic resource management, the data centre sector is proving that growth and sustainability can go hand in hand.
At Veolia, we help data centres meet these ambitions head-on. From energy and water optimisation to secure waste handling and heat network development, we partner with operators to build resilience into every aspect of their operations, because the future of digital progress depends on how responsibly we power it.
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