Speaking to Capacity for its Energy Special Report, Eaton’s chief data centre architect JP Buzzell warned that focusing purely on absolute power use “risks oversimplifying the situation.” The more relevant question, industry leaders argue, is how efficiently that power converts into computing output.
José Mendieta, energy director at Elea Data Centers, put it plainly: data centres represent about 1.7% of Brazil’s total electricity consumption, a figure Brasscom projects will reach 3.6% by 2029. But with Brazil’s grid already 88.2% renewable, the environmental impact looks very different to markets still reliant on fossil fuels.
Water use tells a similar story. Older evaporative cooling systems are genuinely water-intensive, but newer closed-loop liquid cooling architectures reuse water rather than consuming it. Around 80% of Elea’s facilities already run closed-loop systems, a figure expected to climb to 90% within years, according to Mendieta.
Not every operator is playing fair, though. The report cites reports that Elon Musk’s xAI ran gas turbines illegally at a US site, violating local environmental rules and reportedly harming nearby residents’ health, an example the industry itself points to when explaining why public trust remains low.
Geopolitics adds another layer of pressure. AtlasEdge CEO Tesh Durvasula said Russia’s invasion of Ukraine exposed the risks of over-relying on single energy sources, pushing operators toward diversified procurement and long-term renewable agreements.
The report’s conclusion: engineering-led solutions, grid-interactive design, modular power systems and “bring-your-own-power” models, are what will separate resilient operators from the rest as demand keeps climbing.
Download the full report here: State of the Sector: Data Centres – Energy Special Report
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