The growing demand for AI, IoT, e-commerce, and streaming services has led to a significant increase in data centre energy consumption, with even faster growth predicted in the future. Not only does this raise environmental worries, but industry and governments are increasingly concerned that national grids will struggle to cope with demand. In this post, we examine how hosting providers are investing in renewable infrastructure to reduce their environmental impact and guarantee energy supplies.
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Long-term growth in demand
According to the recent International Energy Agency (IEA) report, Energy and AI, the amount of energy consumed by data centres globally will double to 945 TWh by 2030. AI-related energy consumption is expected to grow 400% over the same periodi.
In the UK, which has the third highest number of data centres globallyii and ranks 4th in the Global AI Indexiii, data centre energy consumption is expected to more than triple. According to the National Grid, it is projected to grow from 7 TWh in 2025 to 22 TWh in 2030. By 2050, this is expected to reach 62 TWhiv.
Data centre demand is already placing significant strain on many national grids, and projected growth means that investment in new infrastructure is essential to ensure countries have the capacity to meet future demand. Given the limitations on using fossil fuels and their environmental impact, the focus for data centre providers and many governments, including in the UK, is to shift to renewable supplies, like wind, solar and nuclear.
Why sustainability is a priority
Whether we associate sustainability with environmental concerns or with business continuity, both interpretations are now a priority for the hosting industry.
Environmental sustainability remains a priority because hosting providers are subject to environmental regulations, emissions targets and reporting rules, and can face penalties for non-compliance. Moreover, with ESG policies and sustainability reporting obligations impacting a business’s choice of provider, data centre operators need to be greener to attract and retain customers.
Sustainability is also critical to ensure business continuity. Investment in renewable energy not only offers long-term financial stability compared to the fluctuating prices of fossil fuels; it also ensures providers can remain operational in the face of growing energy demands or in times of fossil fuel shortages.
Need to comply with an ESG policy? Read: Going Green: Why Your Choice of Web Host Matters
How hosting providers are adopting renewable energy
There are several ways that hosting providers are seeking to adopt renewable energy. These include:
- Green energy providers: Energy suppliers have invested heavily in renewable energy over recent decades. Solutions include nuclear and hydro power, solar power, onshore and offshore wind farms, biomass and ocean power (wave, tidal and thermal). During 2024, more than half of all UK energy was generated from renewable sources.
As a result of these developments, many hosting providers have opted to purchase their energy from suppliers that offer 100% renewable energy packages.
- On-site generation: With national grids struggling to meet the growing energy demands of data centres, many hosting providers are opting to invest in their own renewable energy supplies. While existing facilities are installing solar panels or wind turbines to supplement grid electricity, plans for new data centres include purpose-built solar or wind farms and battery storage facilities that will end reliance on the grid.
- Nuclear partnerships: In the US, hosting giants like Google, Microsoft and Amazon have already struck deals with nuclear energy providers to power some of their data centres. In the UK and elsewhere, there is growing interest in developing small-scale modular nuclear reactors to power the next generation of data centres.
Find out the benefits of a green website, read: How Sustainable Practices Are Shaping the Future of Business Websites
Using AI to cut consumption
While switching to renewable energy helps the environment and reduces reliance on national grids, hosting providers are also using technology to cut the amount of energy they use.
Many hosting providers now use AI-powered energy management systems to monitor and optimise their data centre operations. One area where this is particularly beneficial is with cooling. With 40% of data centre energy used for cooling, AI reduces consumption by monitoring temperatures in real time and adjusting cooling systems to suit demand.
AI is also being deployed to increase efficiency. It can dynamically balance workloads across servers, consolidate underused systems and turn off unused servers. Moreover, the technology can use historical and real-time data to predict future demand, enabling providers to allocate resources more efficiently.
Discover other ways AI assists providers: How Web Hosts Use AI to Prevent Website Downtime
What to look for in a sustainable hosting provider
There are several key indicators that show a hosting provider operates sustainably. ISO 14001-certified data centres, for instance, demonstrate the provider has an effective environmental management system, complies with environmental performance standards and uses resources with minimal waste. ISO 50001 accreditation, meanwhile, shows energy management to have made consistent progress.
Responsible providers will also comply with the Streamlined Energy and Carbon Reporting (SECR) regulations, participate in?the Energy Saving Opportunities Scheme (ESOS) and operate cooling systems that comply with ASHRAE thermal guidelines. Those who use renewable energy should have Renewable Energy Guarantee of Origin (REGO) certificates, while forward-thinking providers will also invest in efficient hardware, such as the latest CPUs and SSD or NVMe drives.
Conclusion
With data centre energy consumption expected to double in the next five years, the potential impact on national grids and the environment means hosting providers are increasingly turning to renewable energy. Offering increased energy security and improved sustainability, it ensures providers can meet customer expectations, comply with regulations and maintain business operations.
ISO 14001 and ISO 15001 accredited, and compliant with SECR and ESOS, eukhost is committed to operating sustainably. We utilise renewable energy, obtain REGO certificates and participate in the Project Green Connect carbon offsetting programme. For more information about our hosting solutions and green credentials, visit our homepage.
