With rising energy costs and environmental concerns, properties like data centres are having to seek sustainable solutions for a secure future. Sustainable solutions not only reduce operational costs but help secure long-term tenants.
Rising Energy Costs Pressure Data Centre Development
Energy costs are on the rise and prices continue to reach record highs. According to the World Bank, the power price index increased 26.3% in the first four months of 2022 and 50% from January 2020 to December 2021. Coal, petroleum, and natural gas prices are rising, and the Russia-Ukraine war has revealed instability in energy prices and accessibility, especially in Europe.
Naturally, rising energy prices have pushed up operational costs, and resource-heavy industries like data centres have felt the pinch. Data centres are where enterprises gather, store, and process their IT and data systems. Smooth operations require a huge amount of energy because the systems require power but also a temperature-controlled environment. According to Savills, a data centre of 100,000 sq ft can consume the same amount of energy as 15,000 households. Given rising energy prices, data centre owners and operators will face significant financial pressure.
Although operational costs are on the rise, demand is also rising. Many countries are going through digital transformations, with every aspect of society, from the economy to the health system going digital. To meet growing demand in the context of rising operational costs, developers must implement sustainable strategies and green solutions.
See further: Data Centres: Managing Digital Demands
According to Savills experts, the benefits of green data centres are multifaceted. Green solutions allow occupiers and owners to cut their energy bills, reduce their carbon footprint, and improve operational efficiency. These are differentiating advantages and are attractive to domestic and foreign customers alike.
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Sustainable Solutions for Data Centres
The primary concern in making data centres more sustainable is how to improve energy efficiency. Data centres have a power usage effectiveness (PEU) to measure how much energy the computing equipment uses. The optimal score is 1. To green operations and improve PEU scores, data centres are implementing high-tech solutions. For example, they are using adiabatic cooling systems for energy optimisation and LED lighting has been widely deployed. Smart air management systems and modern M&E equipment also play a part in the move to a sustainable industry.
Although new, high-tech equipment demands high investment capital, the long-term efficiency and tenant retention outweigh the initial startup costs. While new projects need to be built as green properties, existing projects must be revamped because they will account for the largest supply share for at least the next decade. This presents both challenges and opportunities for the sector in meeting its sustainability goals.
Another issue data centres face is that they produce heat waste. The computing systems coupled with the cooling systems generate heat. To reduce pollution and meet sustainability targets, developers must instal efficient energy systems and can even repurpose the excess heat. For example, it can be redirected and used by secondary users like offices or residential neighbourhoods as a heating source.
Data Centres can also utilise the space they occupy to take advantage of renewable sources with some enterprises implementing on-site wind or solar converters. Several have rooftop solar panels, which not only cuts costs but mitigates the risks of relying on one power source.
Mr John Campbell, Associate Director, Head of Industrial Services, Savills Viet Nam, said: “By 2025, Viet Nam’s data centre market is expected to be worth US$1.6 billion, and is being driven by the popularisation of big data, cloud computing, or the Internet of things. Demand in Viet Nam will rise and the country presents great potential for large-scale projects.”
Conclusion
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See Further: Asia Pacific Data Centres Spotlight June 2022