How Data Centers Impact the Environment
Summary
TLDRIn this video, Adam Simmons from DGTL Infra discusses the environmental impact of data centers, a crucial component of digital infrastructure. He highlights the energy-intensive nature of these facilities, which consume significantly more power than traditional buildings. The script delves into data centers' greenhouse gas emissions, renewable energy sourcing, power sustainability, and water usage. It also compares the environmental goals and achievements of the six largest publicly traded data center operators in the U.S., including Equinix, Digital Realty, CyrusOne, CoreSite, QTS Realty Trust, and Switch, showcasing their efforts towards sustainability and renewable energy.
Takeaways
- π The internet relies heavily on digital infrastructure, particularly data centers, which are significant users of electric power.
- π‘ Data centers are a core part of the United Nations' sustainable development goals, playing a central role in the transition to a low-carbon economy.
- π Data centers consume 10 to 50 times more energy per floor space compared to a typical commercial office building, highlighting their energy-intensive nature.
- π Greenhouse gas emissions, renewable energy sourcing, power sustainability, and water sustainability are the four key areas of environmental focus for data centers.
- πΏ Data center operators are increasingly focusing on sourcing energy from renewable sources, with cloud service providers like AWS, Microsoft Azure, and Google Cloud leading the way.
- π Power Usage Effectiveness (PUE) is a key metric for measuring the efficiency of data centers, with a lower PUE indicating better energy efficiency.
- π§ Water Usage Effectiveness (WUE) is another sustainability metric that measures the water used by data centers for cooling equipment.
- π Equinix, the largest data center provider globally, reported 92% of its energy consumption came from renewable sources and has a PUE of 1.54.
- π Digital Realty aims to become 100% renewably powered and has set a carbon reduction target in line with a 1.5-degree climate change scenario by 2030.
- π¦ CyrusOne is targeting net-zero carbon emissions by 2040 and has a top-tier WUE ratio of 0.37, indicating its leadership in water sustainability.
- π Switch Inc. stands out as the most environmentally conscious, being 100% renewably powered and having the lowest PUE ratio of 1.23 among its peers.
Q & A
What is the role of digital infrastructure, particularly data centers, in supporting the growth of the internet?
-Digital infrastructure, especially data centers, plays a crucial role in supporting the growth of the internet by providing the necessary power and resources to handle the increasing demand for data storage and processing across various devices like phones, computers, and connected cars.
How does the growth of data centers impact power consumption and sustainability efforts?
-The growth in data centers leads to an increased need for power to run these facilities. This has made digital infrastructure a core part of the United Nations sustainable development goals, emphasizing the transition to a low-carbon economy and sustainable cities.
What percentage of electricity usage in the United States is attributed to data centers?
-According to the United States Department of Energy, data centers comprise 1.8 percent of electricity usage in the United States.
How do data centers compare to commercial office buildings in terms of energy consumption per amount of floor space?
-Data centers consume 10 to 50 times the energy per amount of floor space compared to a typical commercial office building, making them one of the most energy-intensive building types.
What are the three types of greenhouse gas emissions scopes as defined by the Environmental Protection Agency (EPA) for data centers?
-The EPA defines three scopes of greenhouse gas emissions for data centers: Scope 1 includes direct emissions from natural gas, diesel, and refrigerants; Scope 2 covers indirect emissions from purchased electricity; and Scope 3 includes all other indirect sources of emissions, such as those from the customer's equipment.
What is the significance of carbon intensity in measuring greenhouse gas emissions for data centers?
-Carbon intensity is a metric used to measure the greenhouse gas emissions characteristics of a business, taking into account both the scale of the business, as measured by energy use or revenues, and the average emission rate based on the primary energy source used to generate electricity for the electrical grid.
How are cloud service providers like AWS, Microsoft Azure, and Google Cloud approaching renewable energy sourcing for their data centers?
-Cloud service providers are increasingly focusing on sourcing direct energy from renewable sources, often locating their sites near renewable energy sources due to their large energy commitments and the sophistication required to enter into renewable energy partnerships.
What is Power Usage Effectiveness (PUE) and why is it important for data centers?
-Power Usage Effectiveness (PUE) is an efficiency metric that represents the ratio of the total amount of electricity consumed by a data center to the amount of electricity delivered to its equipment. A lower PUE indicates a more efficient data center, which is important for reducing energy consumption and costs.
What is Equinix's reported Power Usage Effectiveness (PUE) and what is their target for new data center builds?
-Equinix reports a Power Usage Effectiveness (PUE) of 1.54 for its current data center build standards, with a target of 1.45 for new data center builds.
How does CyrusOne's water usage effectiveness ratio compare to other data center operators mentioned in the script?
-CyrusOne reports a water usage effectiveness (WUE) ratio of 0.37, which makes it the top operator in terms of this metric among those discussed in the script.
What are some of the environmental targets set by the six largest publicly traded data center operators in the United States?
-The environmental targets set by these operators include carbon reduction, renewable energy use, power sustainability improvements, and water sustainability efforts. For example, Equinix aims to reduce its global carbon footprint and increase focus on indirect value chain emissions, while Switch Inc. operates with zero greenhouse gas emissions and uses 100% renewable energy for its U.S. data centers.
Outlines
π Digital Infrastructure and Environmental Impact
Adam Simmons from dgtl infra discusses the significance of digital infrastructure, particularly data centers, in supporting internet growth. He highlights the increasing power needs of data centers and their role in the United Nations' sustainable development goals, emphasizing the transition to a low-carbon economy. Data centers are recognized as energy-intensive, consuming 10 to 50 times more energy per floor space than commercial office buildings. The United States Department of Energy reports that data centers account for 1.8 percent of US electricity usage. Simmons outlines key environmental concerns for data centers, including greenhouse gas emissions, renewable energy sourcing, power sustainability, and water sustainability. He explains carbon intensity and the EPA's scope for emissions, which categorizes emissions into three types: direct, indirect, and other indirect sources.
π§ Water Sustainability and Environmental Goals of Data Center Operators
This paragraph delves into water sustainability, detailing projects that reduce potable water use for cooling, on-site water treatment, rainwater capture, and water restoration in high water stress regions. It introduces the Water Usage Effectiveness (WUE) metric, which measures the water used by data centers to cool their equipment. The paragraph then provides an overview of the environmental achievements and future targets of the six largest publicly traded data center operators in the United States, focusing on Equinix. Equinix's energy consumption is detailed, with 92% coming from renewable sources and a reported Power Usage Effectiveness (PUE) of 1.54. However, Equinix does not report a Water Usage Effectiveness ratio. The company has set carbon reduction and renewable energy targets, aiming for a 100% clean energy usage and focusing on indirect value chain emissions.
πΏ Renewable Energy and Carbon Reduction Targets of Data Center Providers
The script continues with an analysis of the environmental performance and goals of various data center providers, starting with Digital Realty, which consumed 6904 gigawatt hours with 30% from renewable sources. It outlines the company's targets for carbon reduction aligned with a 1.5-degree climate change scenario by 2030 and its long-term goal to become 100% renewably powered. CyrusOne is highlighted for its top position in water sustainability with a WUE ratio of 0.37 and its target for net-zero carbon emissions by 2040. CoreSite's energy consumption is noted, with 42% from renewable sources, and its lack of carbon reduction and renewable energy targets is pointed out. QTS Realty Trust's energy consumption, with 32% from renewable sources, and its medium to long-term renewable energy targets are discussed. Lastly, Switch Inc. is recognized for being 100% renewably powered since January 2016 and having the lowest PUE ratio of 1.23 among its peers.
π Environmental Leadership Among Data Center Operators
The final paragraph emphasizes Switch Inc.'s environmental leadership, noting its 100% renewable energy use and zero greenhouse gas emissions for equipment inside its data centers. It also mentions that Switch does not report water usage effectiveness but has not specified long-term water usage targets. The company is recognized by Greenpeace in its 'Clicking Clean' report for having a 100 clean energy index, surpassing other tech giants like Apple, Facebook, Google, Microsoft, and Salesforce. The video concludes by recommending further exploration of data centers through two additional videos: one comparing the top five data center companies and top seven US markets, and another comparing the top five data center markets in Europe.
Mindmap
Keywords
π‘Digital Infrastructure
π‘Data Centers
π‘Sustainable Development Goals
π‘Greenhouse Gas Emissions
π‘Renewable Energy Sourcing
π‘Power Usage Effectiveness (PUE)
π‘Water Sustainability
π‘Carbon Reduction Targets
π‘Renewable Energy Targets
π‘Water Usage Effectiveness (WUE)
π‘Environmental Focus
Highlights
Digital infrastructure, particularly data centers, is crucial for supporting the growth of the internet and is a core part of the United Nations sustainable development goals.
Data centers are one of the most energy-intensive building types, consuming significantly more energy per amount of floor space compared to a typical commercial office building.
Greenhouse gas emissions, renewable energy sourcing, power sustainability, and water sustainability are the four key areas of environmental focus for data center operators.
Carbon intensity is used to measure greenhouse gas emissions, taking into account business scale and the average emission rate of the primary energy source.
Data centers' greenhouse gas emissions are categorized into three scopes as per EPA guidelines: Scope 1 for direct emissions, Scope 2 for purchased electricity, and Scope 3 for indirect emissions.
Cloud service providers like AWS, Microsoft Azure, and Google Cloud are more frequently engaging in renewable energy partnerships due to their single-tenant data centers.
Power Usage Effectiveness (PUE) is an efficiency metric that measures the total electricity consumed by a data center against the electricity delivered to its equipment.
The average PUE of data centers is declining, indicating increased efficiency, with the latest survey showing an average PUE of 1.58.
Water Sustainability includes reducing potable water use for cooling, on-site water treatment, rainwater capture, and water restoration in high water stress regions.
Equinix, the largest data center provider globally, reported 92% of its energy consumption coming from renewable sources and a PUE of 1.54.
Digital Realty aims to align carbon emissions with a 1.5-degree climate change scenario by 2030 and has long-term goals to become 100% renewably powered.
CyrusOne has a goal to be net zero carbon emissions by 2040 and is currently equipping all new data centers with water-free cooling.
CoreSite has no carbon reduction or renewable energy targets but intends to reduce the use of potable water for cooling and minimize its freshwater footprint.
QTS Realty Trust aims to procure 100% of its power from renewable energy sources by 2025 and has already achieved its goal to conserve at least 10 million gallons of water per year.
Switch Inc. operates with zero greenhouse gas emissions for equipment inside its data centers by using 100% renewable energy and has a PUE ratio of 1.23.
Switch Inc. is recognized by Greenpeace as having a 100% clean energy index, ranking higher than other major technology companies.
Transcripts
[Music]
hey everyone
adam simmons here from dgtl infra
short for digital infrastructure the
internet is an important part of our
lives
every day and digital infrastructure
specifically data centers
supports the growth of the internet
whether it's on our phones
computers or connected cars with the
growth in data centers
comes a need for more power to run those
data centers
indeed this is why digital
infrastructure forms a core part of the
united nations
sustainable development goals digital
infrastructure assets
have a central role to play in the
transition to a low
carbon economy which resides in
sustainable cities
and people are starting to take action
environmental goals have gained
increasing importance for corporations
and their employees
customers shareholders and other key
stakeholders
data centers have a heavy reliance on
the electrical grid
and comprise a significant portion of
electricity usage globally
in fact data centers are one of the most
energy intensive building types
consuming 10 to 50 times the energy
per amount of floor space compared to a
typical commercial office building
according to the united states
department of energy data centers
comprise
1.8 percent of electricity usage in the
united states
so data centers are significant users of
electric power
however data center designs and their
ability to have
multiple tenants make them a more
efficient use of energy
than the alternative which is older more
traditional
on-premises servers the factors that
matter most for data centers are
greenhouse gas emissions
renewable energy sourcing power
sustainability
and water sustainability so number one
is greenhouse gas emissions
these are often measured by what is
known as carbon intensity
carbon intensity is a metric used to
provide a sense of greenhouse gas
emissions characteristics
after factoring in both the scale of a
business as measured by its energy use
or revenues
and the average emission rate based on
the primary energy source
used to generate electricity for the
electrical grid
for example this includes hydroelectric
natural gas
coal and wind power in order to better
frame out greenhouse gas emissions for
data centers
they are typically broken down into
three types of scope
based on guidance from the environmental
protection agency or epa
scope 1 includes natural gas which is
used for heating and fuel cells
diesel which is used for backup
generation and refrigerants which are
used in the cooling systems of data
centers
scope 2 covers electricity purchased or
consumed by the data center
and scope 3 includes all indirect
sources of greenhouse gas emissions
so these even include the emissions from
the customer's equipment of that data
center
number two is renewable energy sourcing
data center operators have increasingly
focused on sourcing direct energy
where possible from renewable sources
given the large energy commitments and
sophistication required to enter into
renewable energy partnerships
these are actions that the cloud service
providers such as
amazon web services or aws microsoft
azure
and google cloud use more frequently
given that they are the only tenant
inside their data centers
these cloud service providers also have
the ability to locate their sites
near renewable energy sources however
the multi-tenant segment of the data
center industry which includes companies
like equinix and digital realty
has been less active in renewable energy
sourcing
given uncertainties in things like the
duration of their tenant leases
the power used by their tenants and the
preference of their tenants for data
center locations that are closer to
established data center hubs
the third area of environmental focus
for data center operators
is power sustainability and within that
power usage effectiveness
also known as pue is an efficiency
metric that is the ratio of the total
amount of electricity
consumed by a data center to the amount
of electricity delivered to its
equipment
pue is always equal to one or greater
and the closer that the pue is to one
the more efficient the data center
according to the latest survey from the
uptime institute
the average pue of a data center
currently stands at 1.58
this figure has been declining steadily
since 2007
when it was 2.5 and in 2013 when it was
1.65 one example of how data center
providers
strive to improve their power usage
effectiveness or pue
is through server efficiency this is
where newer servers are able to handle
higher workloads
with similar or even lower power
consumption
finally the fourth key area of
environmental focus for data center
operators
is water sustainability water
sustainability
includes projects such as the reduction
of potable meaning
safe to drink water use for the purposes
of cooling
on-site water treatment rain water
capture
and water restoration which is
particularly in vulnerable regions
with what is known as high water stress
water usage effectiveness also known as
wue
is a sustainability metric that measures
the water used by data centers
to cool their equipment water usage
effectiveness is calculated by dividing
annual water usage by the energy
consumption of the it computing
equipment
in kilowatt hours so with that overview
of the four
areas of environmental focus for data
center operators
now let's detail some of the specific
environmental information
on the six largest publicly traded data
center operators
in the united states specifically we
provide detail on each data center
provider's
energy consumption renewable energy use
power sustainability and water
sustainability
we discuss these environmental factors
both in terms of
current achievements and each operator's
targets for the future
if they have any so first starting with
equinix
the largest data center provider
globally equinix consumed a total of
5 740 gigawatt hours of energy
over the past year which is comprised of
electricity
and chilled water of this total 5
250 gigawatt hours or 92 percent
came from renewable energy sources in
terms of power sustainability
equinix reports a power usage
effectiveness ratio
or pue of 1.54 with its current data
center build standards
being a power usage effectiveness ratio
of 1.45
in terms of water sustainability equinix
does not report any
water usage effectiveness ratio or other
types of this information
so for equinix and each of the six data
center providers covered
we have broken down their targets into
three key segments
first is carbon reduction targets second
is renewable energy targets and third is
water usage targets
we will use these three groupings as a
framework to discuss and compare each of
the data center providers
in terms of carbon reduction target
equinix has the target to reduce its
global carbon footprint across
direct and indirect energy consumption
and increase its focus on
indirect value chain emissions the
direct energy being
electricity natural gas and diesel and
the indirect being energy consumption
from equinix's tenants
in their data centers in terms of
renewable energy targets
equinix has a long-term target of using
100
clean energy and indeed all of equinix's
data centers in the united states and
europe have achieved
100 renewable energy use in 2019
in terms of water usage targets equinix
is targeting a reduction in
overall water consumption one additional
highlight to note about equinix
is that equinix is the only data center
provider that breaks out its energy
consumption
by type of renewable energy used as you
can see on screen
specifically equinix's 5 250 gigawatt
hours of renewable energy sources
is split into four categories first is
green power from its suppliers second is
renewable energy credits
known as rex third is virtual
or financial ppas which are power
purchase agreements
and fourth is a category called grid mix
remainder
now moving to the second data center
provider digital realty
digital realty consumed a total of 6904
gigawatt hours of energy over the past
year
of this total 1966 gigawatt hours
or 30 came from renewable energy sources
in terms of power sustainability digital
realty does not report
power usage effectiveness also known as
pue
information but targets a power usage
effectiveness ratio of 1.5
as a baseline in terms of water
sustainability digital realty reports a
water usage effectiveness ratio
or wue of 1.58
in terms of carbon reduction target
digital realty
intends to bring carbon emissions in
line with a one and a half degree
climate change scenario by 2030. this is
in reference to the science-based
targets initiative
known as sbti
in terms of renewable energy targets
digital realty has the long-term goal to
become
100 renewably powered additionally
digital realty targets
100 wind power for its united states
co-location business
and 100 renewable energy for all of its
europe middle east and africa properties
in terms of water usage target digital
realty intends to expand
water conservation and efficiency
efforts through reduction
reuse and recycle projects specifically
as it relates to cooling technologies
moving now to the third data center
operator being cyrus one
cyrus one consumed a total of two
thousand
five hundred and six gigawatt hours of
energy over the past
year of this total 456 gigawatt hours
or 18 came from renewable energy sources
in terms of power sustainability cyrus 1
reports a power usage effectiveness
ratio
or pue of 1.6
in terms of water sustainability cyrus 1
reports a
water usage effectiveness ratio of 0.37
making it the top operator in terms of
this metric
in terms of carbon reduction target
cyrus 1 targets
net zero carbon emissions meaning carbon
neutral
by 2040. in terms of renewable energy
targets
cyrus one has not set a long-term target
but notes that currently
100 of cyrus one's facilities have the
ability to offer customers
some form of renewable power as an
upgrade through the power provider
at that facility in terms of water usage
target
cyrus 1 intends to avoid dependence on
water for cooling
and they are currently equipping all new
data centers with water free cooling
additionally most of cyrus 1's older
facilities
also use water free cooling cyrus 1 also
has the goal to restore
water in high risk regions specifically
they intend to have seven net positive
water facilities
in high stress regions as compared to
only one
currently finally cyrus one also wants
to be what's known as
net water positive by acquiring water
restoration
certificates known as wrcs to restore
water to local ecosystems
making its presence a net benefit to the
watersheds where it operates
moving now to the fourth data center
provider coresight
coresight consumed a total of 908
gigawatt hours of energy
over the past year of this total 381
gigawatt hours
or 42 percent came from renewable energy
sources
in terms of power sustainability
coresight reports a power usage
effectiveness ratio
or pue of 1.4 in terms of water
sustainability
coresight does not report water usage
effectiveness or wue
information overall coresight has rather
disappointing commitments to carbon
reduction renewable energy
and water usage corset has no carbon
reduction target
additionally it has no renewable energy
target although it does have some water
usage targets
coresight intends to reduce the use of
potable meaning
safe to drink water for the purposes of
cooling
additionally coresight is targeting to
minimize its freshwater footprint
by utilizing rainwater for cooling when
possible
it's worth noting that currently
coresight primarily uses water
for cooling at its data centers
moving now to the fifth data center
operator qts
realty trust qts consumed a total
of 1186 gigawatt hours of energy
over the past year of this total 380
gigawatt hours or 32 percent
came from renewable energy sources in
terms of power sustainability
qts does not report a power usage
effectiveness ratio
or pue but our analysis shows that qts's
power usage effectiveness ratio
is ultimately greater than 1.5
in terms of water sustainability qts
reports a water usage effectiveness
or wue ratio of 1.63
in terms of carbon reduction targets qts
currently does not have any
in terms of renewable energy targets qts
in the medium term
targets achieving 50 of power from
renewable energy sources by 2022
in the long term qts intends to procure
100 of its power from renewable energy
sources
by 2025. in terms of
water usage targets qts intends to
conserve
at least 15 million gallons of water
per year indeed qts has already achieved
its prior goal
to conserve at least 10 million gallons
of water per year
finally now moving to the sixth data
center operator we cover
which is switch inc switch consumed a
total of
690 gigawatt hours of energy over the
past
year of this total the entire 690
gigawatt hours
or 100 percent came from renewable
energy sources
which makes switch top of the pack
amongst its peers
in terms of power sustainability switch
reports a power usage effectiveness
or pue ratio of 1.23
also making it to the top of the list
amongst its peers
in terms of water sustainability switch
does not report
water usage effectiveness or wue
information
in terms of carbon reduction targets
switch already operates
with zero greenhouse gas emissions for
equipment inside its data centers
by using renewable energy in terms of
renewable energy targets
switch is already at one hundred percent
since january 2016 switches powered all
of its u.s
data centers with 100 clean and
renewable energy
indeed switch is the largest data center
operator in the united states
to be 100 percent renewably powered
however in terms of water usage target
switch has not made it clear
what their long-term goals are stepping
even out of the data center universe
overall switches one of the most
environmentally conscious technology
firms
in the world switch is the only company
that greenpeace recognizes
in its clicking clean report as having a
100 clean energy index
the company's energy index was higher
than every other technology company
identified in the report including apple
google microsoft and salesforce
additionally switch was the only company
in the report to receive an
a grade in all five categories measured
by greenpeace
so that wraps up our environmental
analysis on the six largest
publicly traded data center operators in
the united states
if you want to dive deeper into data
centers then we recommend checking out
two of our most recent videos first
check out the video
top five data center companies and seven
us markets
in this video we provide a comparison of
the five largest data center companies
in the united states
including equinix digital realty cyrus 1
coresight and qts realty trust
additionally we walk through a
comparison of the top 7 data center
markets in the u.s
including northern virginia silicon
valley
greater new york chicago dallas fort
worth
phoenix and atlanta second
we recommend checking out the video top
5 data center markets
in europe in this video we provide a
comparison of the top five data center
markets in europe
including frankfurt london amsterdam
paris and dublin with that
thanks for watching and i'll see you in
the next video
[Music]
morning
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