Data Centers: The Unexpected Heroes of Climate Neutrality

Data centers are the backbone of digital transformation and are central in helping organizations achieve sustainability targets.  

In a recent blog post, Jeremy Deutsch, president of Equinix in the Asia Pacific, addressed the sustainability imperative, identifying that adopting efficient and sustainable solutions has transitioned from a mere option “to an absolute necessity.”

“As the reliance on interconnected ecosystems and data-centric technologies becomes integral to everyday business and personal activities, the imperative for seamless and environmentally responsible digital infrastructure has intensified,” Deutsch said.

As a data center provider, Deutsch said the Equinix global platform had a crucial role in assisting partners and customers to achieve their own sustainability goals, helping them transition their Scope 1 and 2 emissions to Scope 3.

“Equinix firmly believes that interconnection and sustainability are synergistic forces driving positive change,” he said. “Our global platform allows companies to reach partners and customers across the digital ecosystem with minimal latency, reducing the need for energy-intensive data exchange and reducing their environmental impact.” 

“At Equinix, we are acutely aware of the urgency of reaching climate neutrality and are dedicated to demonstrating how digital interconnectivity and environmental stewardship can coexist harmoniously,” he added.

Globally, in 2023, Equinix realized a 24% decrease in Scope 1 and 2 operational emissions from a 2019 baseline, bringing the company closer to its objective of cutting operational emissions in half by 2030.

This progress is partly thanks to a commitment to renewable energy, which accounts for 96% of worldwide energy coverage.

With USD78M invested in enhancing operational excellence and energy demand reduction, efficiency projects in 2023 significantly contributed to this progress.  

Achieving climate-neutrality

Deutsch outlined how unique challenges presented by the region’s diverse landscape can be converted into sustainability opportunities through a localized approach.

Recent solar rooftop installations in Melbourne and India were examples of greening local grids and scaling renewable energy projects. 

In 2023, Equinix's energy consumption across data center operations in the Asia-Pacific region reached 1,719 GWh, with 1,349 GWh covered by renewable energy.

“Equinix firmly believes that interconnection and sustainability are synergistic forces driving positive change.”

The company has focused on expanding renewable energy supplies in high-impact markets to aid in the transition towards clean energy, achieving significant strides in Australia and Singapore through Power Purchase Agreements (PPAs).  

Equinix recently initiated a PPA in Singapore with local utility operator Sembcorp, which will see the offtake from a 75 megawatt-peak (MWp) solar energy project. 

Similarly, Equinix secured 151 MW of renewable energy in Australia through a PPA signed with TagEnergy.

“These initiatives are poised to bolster a resilient and clean energy supply for local data centers,” said Deutsch. “Moreover, they play a vital role in nurturing local renewable energy sectors.” 

Equinix has committed to over 1 GW of PPAs globally, with 225 MW already operational.

Scaling access to PPAs is critical to achieving the 2030 renewable goals, and since 2015, the company has committed to 22 PPAs globally.

Operational efficiency

Last year, Equinix continued to execute a series of efficiency initiatives identified as part of its 5-year roadmap toward significantly lowering Power Usage Effectiveness (PUE) across its global portfolio. 

The USD78 million investment in energy efficiency initiatives throughout 2023 contributed to achieving a global average PUE of 1.42 for 2024, an 8.8% improvement from the previous year.

In Asia-Pacific, for example, initiatives include using an AI-driven approach in Hong Kong to regulate temperature and optimize energy management at select sites. This led to a 5% reduction in energy consumption, saving around 200MWh per site annually.

In Singapore, the company retrofitted cooling towers at select sites by replacing the original fans, powered by less-efficient alternating current motors, with advanced direct shaft-driven fans using electric motors. This initiative improved cooling efficiency and reduced energy consumption, achieving energy savings of 38%-50%. 

Developing alternative power sources is vital to maintaining uptime for data centers. 

In 2023, Equinix, along with its partner, the National University of Singapore’s Centre for Energy Research & Technology, released the results of a study into various fuel systems utilizing green hydrogen for data center backup power to support Singapore’s hydrogen strategy. 

Moving to Australia, Equinix achieved enhanced generator reliability and energy savings by retrofitting a pump circulation heater, which allowed it to maintain a consistent operating temperature of 27°C.

Solar arrays were also deployed in eight of the company’s Australian data centers, providing approximately 1.8MW of clean energy to local power grids.

To help finance these and other sustainability initiatives around the world, Equinix has issued USD4.9 billion in green bonds since 2020, the funds from which have all been allocated. This has resulted in annual energy savings of around 1,800 GWh and carbon emissions reductions of over 669,000 mtCO2.  

Future-First strategy

“Transparency and accountability are integral to ensuring our sustainability efforts are impactful and long-lasting,” said Deutsch. “We are proud to have received a CDP Climate Change “A” rating for the second consecutive year, recognizing our global commitment to responsible environmental practices and transparent reporting.” 

“We believe that by working together, we can harness the power of interconnection to build a thriving digital economy that benefits business and the environment, creating a more sustainable future for Asia-Pacific and the world,” he concluded.

Image credit: iStockphoto/Дмитрий Ларичев