Call for mandated data centre energy and water efficiency

According to researchers, Australia has more than 90 major data centre projects in the pipeline, in addition to 162 already in operation. The Clouded future: Managing risks of the data centre boom report predicts that if all proposed projects go ahead, their total maximum energy demand would be more than 21GW, which is seven times the energy output of Eraring, Australia’s biggest coal-fired power station.

The largest data centres, such as the proposed hyperscale 1.2GW Mamre Road facility in NSW, have a maximum capacity greater than the Tomago Aluminium Smelter, the Climate Council says.

The substantial and exponentially increasing energy demand runs the risk of hiking up power prices for consumers and increasing pollution, if gas and coal-fired power remain in play to ensure energy demand can be met. There’s also the pollution risks of diesel generator backup power to consider.

In addition, the cooling systems of data centres require significant quantities of water. According to the researchers, urban water utilities are receiving single-site connection requests for up to 40 million litres of potable water per day.

The report notes that the solution lies in a combination of design decisions, operational choices and appropriate policy settings. In terms of technology, proven solutions already exist that can reduce energy and water consumption, the report says, and many operators are already moving to adopt innovations.

“There is a commercial imperative for them to reduce their energy and water demand, and in turn, costs,” write the authors.

“Building on existing momentum to ensure efficient data centres are the standard will reduce strain on our energy system and water resources.”

Innovation in play

The report goes on to note that while there are some operational performance trade-offs between water efficiency and energy efficiency, there are already examples of best practice in the Australian market.

“Data centres in Australia are already more energy efficient than the global average, with power usage effectiveness (PUE) as low as 1.07 and a median PUE of 1.3,” state the authors.

The release of NABERS for data centres and federal government procurement specifications requiring data centres contracted for government use to achieve and maintain a five star NABERS rating or equivalent have both played a role in shaping market practices.

Some data centres use advanced cooling systems, such as free-air cooling or closed-loop systems. The report also notes that there are opportunities for data centres to make use of recycled water, rather than potable drinking water.

The report outlines several recommendations for ensuring the expansion of the sector does not compromise energy security, water security or climate goals.

It includes the development of policies around designing for flexible loads, integration of on-site energy storage and minimum power usage effectiveness and energy efficiency standards for all data centre developments. Minimum water usage efficiency (WUE) standards are also recommended.

“Governments should work with industry to develop standards that drive the highest possible efficiency outcomes while allowing data centres to be designed appropriately for the local infrastructure, resources and needs,” states the report.

Big tech shouldn’t get a free ride

In addition, the report says policy should ensure the major tech firms that are a primary customer for data centres are “pulling their weight”.

“In Australia, the companies that use data centres are often separate from the specialist operators that develop, own and manage the facilities,” says the report.

“The separation between operator and customer creates complexities in the application of energy and sustainability obligations. While operators are responsible for building and managing physical infrastructure, the IT load driven by tenants accounts for the majority of electricity consumption.”

One example of sharing the load and responsibility is the Western Sydney Data Centre Energy Hub, which the report showcases.

The local energy provider, Endeavour Energy, is working with the data centre sector, and transmission and water utilities to develop a model for a Data Centre Energy Hub. This would involve multiple data centres connecting to shared infrastructure within a precinct, with each customer fully funding their share of the energy and water assets.

Put DCs where the power is

Another proposal in the report is for more data centres to be based in regional areas that have capacity to absorb additional large energy loads and the required water supplies. Former coal station sites, for example, or within the Renewable Energy Zones.

 “The lesson from the energy transition is clear: we get better outcomes when sectors work together rather than in isolation,” says Sabiene Heindl, CEO of The Energy Charter.

“Data centres, energy companies and governments all have a stake in ensuring that the growth in data centres strengthens, rather than strains, our energy system and provides benefits to Australian communities.”

Read the report here.

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