The way that Europe’s data centre players approach where and how to expand their footprint has fundamentally transformed in the past five years. Power is at the centre of this change, with the question of how to secure it set to shape the next era of data centre growth above all others.

This is the basis of the argument explored in ‘Powering the Next Generation of Data Centres’, a new white paper by UK-based energy and sustainability company True Group published in early June that looks at the challenge in achieving 24/7 carbon-free energy in Europe’s volatile utilities landscape.

The paper highlights the extent to which AI, as well as cloud growth, have influenced this trend, with a dramatic surge in rack densities leading to a huge ramp-up in electricity demand and power required for cooling.

The resulting pressure on the grid and unpredictability caused by the spikiness of AI workloads means the level of available energy is increasingly dictating where it is possible to host data centres, rather than this just being led by network connectivity or compute capacity.

This situation is only likely to heighten further, with data centres’ global electricity consumption of 415TWh in 2024 expected to more than double by 2030.

Integrated outlook

All this means data centre operators and players need to adopt a new strategic outlook, says Elliott Bermudez-Galton, head of Europe at True Group and author of the report.

“Those that want to succeed in this environment need to treat power as an integrated strategic capability in their operations,” he says. “Energy strategy is becoming infrastructure strategy.”

At the same time, it pays to view the power issue as an opportunity rather than just a risk that can delay projects, says Bermudez-Galton.

“Power strategy is becoming a competitive differentiator that can enhance data centre operators’ long-term resilience and sustainability,” he says. “Historically, operators competed on location, connectivity and scale. Increasingly, they will compete on their ability to secure, manage and optimise power.”

He emphasises, however, that there is no single solution to the situation, with those that succeed set to be those that develop diversified energy portfolios properly tied in with their overall strategies.

“There is no silver bullet when it comes to powering the next generation of sustainable data centres,” says Bermudez-Galton. “Operators need portfolios with a range of clean power options that can be tailored to local market conditions.”

These options include the procurement of renewables, energy storage, flexible resources capable of responding rapidly to changes in energy supply, microgrid architectures, and longer-term clean power options.

The right portfolio

The reason a portfolio of options is needed, says Bermudez-Galton, is because all have advantages and disadvantages, depending on the particular scenario.

For example, the use of renewable fuels like biomethane can lead to a significant reduction in carbon emissions and be harnessed alongside much existing energy infrastructure, but is constrained by limitations on availability.

Meanwhile, battery storage can enable flexibility, but many systems cannot sustain extended periods of low renewable output. And emerging technologies like small modular reactors are promising as a source of zero-carbon baseload power, but are unlikely to be widely available until next decade.

One option that Bermudez-Galton cites as having growing appeal is microgrids, whereby players can set up energy systems either in coordination with or independently from the grid. This can enable them to start operating data centres earlier, before other systems become available.

Finally, Bermudez-Galton points out that as scrutiny of and regulations on digital infrastructure are increasing, hyperscalers and other leading players are turning their attention to the more ambitious model of 24/7 carbon-free energy rather than the traditional model of pursuing 100% renewable energy use on an annual basis.

“The increasing complexity with the power situation in Europe’s data centre industry means players need to move beyond ‘single solution’ thinking and embrace fully integrated sustainable energy strategies,” he says.

True expertise

Having formed in 2012 and with experience in consulting on sustainable energy across a wide variety of sectors from manufacturing to food production and plastics, True Group has already established itself as a strategic advisor for the data centre industry.

Today, it supports some of Europe’s largest hyperscale, colocation and edge operators, as well as enterprises, with power procurement, risk management, sustainability and long-term utility planning. Its pan-European team helps customers navigate the increasingly complex relationship between digital infrastructure and energy systems.

True Group has also developed a bespoke platform that tailors information and data towards individual players to help them best manage their procurement, carbon, risk and sustainability strategies while transitioning towards the future energy landscape.

“The dash towards AI is really now a dash to power,” says Bermudez-Galton. “The organisations that understand how to secure, manage and integrate power into their long-term infrastructure strategy will shape the next generation of digital growth.”