Decarbonizing Data Centers

By Jenny Gerson, Senior Director of Sustainability

In today’s climate-conscious world, data center operators are playing a vital role in driving sustainable innovation. As organizations work toward net zero goals, modern data centers are stepping up, not just by delivering high-performance infrastructure, but by focusing on energy efficiency and environmental responsibility.

From greener power sources to smarter facility design, leading data center providers are taking steps to decarbonize operations. It’s a strategic shift that supports both global climate targets and the evolving sustainability priorities of investors and customers.

Understanding the Three Scopes of Emissions

Decarbonizing isn’t just about cutting carbon. It also involves knowing where emissions come from and tackling them with new approaches and more effective solutions.

For data centers, emissions fall into three categories or “scopes,” as defined by the Greenhouse Gas (GHG) Protocol. Each scope represents a different piece of their overall sustainability strategy. Most data center operators are making progress across all three.

Scope 1: Reducing On-Site Emissions at the Source

Scope 1 covers direct emissions from sources owned or controlled by the data center operator. In a typical facility, that includes backup diesel generators, on-site natural gas systems, and fugitive emissions from refrigerant leaks or HVAC systems for cooling.

Many data centers are replacing older equipment with low-emission or renewable-fuel generators, using next-generation cooling technologies, and implementing monitoring systems that detect and reduce refrigerant leaks. These actions help shrink a facility’s carbon footprint and also enhance efficiency and reliability.

Scope 2: Cleaning Up the Power Supply

Scope 2 emissions come from the electricity a data center purchases to power its infrastructure. While data centers are designed to be energy efficient, electricity is still a key part of the equation.

The good news: Data centers are leading the way in transitioning to cleaner, greener power. Many are investing in renewable energy through power purchase agreements (PPAs), renewable energy credits (RECs), and partnerships with utilities. Others are locating facilities in regions with low-carbon grid mixes or developing their own on-site solar or wind capacity. These efforts are dramatically reducing Scope 2 emissions without sacrificing performance.

Scope 3: Tackling Emissions Across the Supply Chain

Scope 3 includes all other indirect emissions – everything from the materials used to build the data center to the equipment it runs and what happens when that equipment reaches end-of-life. It also includes downstream activities, such as how tenants or cloud customers use leased infrastructure.

While Scope 3 is often the most complex to address, it’s also where data center leaders are making long-term investments that pay off. By sourcing low-carbon building materials, extending the lifespan and reuse of IT hardware, and working with vendors and partners who share sustainability goals, operators can reduce emissions. By helping customers optimize workloads and power usage, they’re creating ripple effects that benefit the entire digital ecosystem.

Together, Scopes 1, 2, and 3 offer a complete view of a data center’s carbon footprint and a roadmap for meaningful progress. With this framework in mind, let’s look at the practical steps data center operators can take today – and what DataBank is doing right now.

How DataBank is Leading with Smart, Sustainable Strategies

At DataBank, sustainability isn’t just a goal. It’s built into how we operate, grow, and serve our customers. While we’re addressing all three emission scopes, our most immediate impact comes from reducing Scope 2 emissions, starting with renewables.

By integrating sources such as solar and wind into their energy mix, data centers are shrinking their carbon footprints while maintaining the reliability and performance their customers depend on. We’re also exploring carbon capture and sequestration opportunities with utility partners, investing in innovations that reduce emissions at the source, not just in our facilities, but at the grid level. These investments align with a larger shift in how data centers interact with the energy ecosystem.

As power grids evolve, flexibility becomes just as important as efficiency. Hyperscalers are able to optimize load shifting to move power-intensive workloads like AI training to times of day when renewable energy is most available and cost-effective. Not only does this help flatten demand curves and stabilize the grid, it opens the door for more renewables to come online.

While hyperscalers are able to do this, most colocation operators can’t. Instead, DataBank engages in demand response using large-scale batteries and generators to stabilize the grid. By aligning our operations with grid dynamics, we’re not only enhancing our sustainability efforts but also contributing to a more resilient and efficient energy system.

Such a flexible approach can pay off. Recent research featured on the “The Potential for Flexible Data Centers” episode on the Catalyst podcast reveals that if data centers could be flexible – just 0.25% of the time approximately 22 hours per year – it would be possible to add up to 76 gigawatts of new data center capacity without necessitating additional grid infrastructure. This shows the significant impact that even minimal operational flexibility can have on accommodating growth sustainably.

Driving Sustainability Through Action

DataBank is making meaningful progress toward its sustainability goals by implementing a wide range of energy-efficient practices and proactive environmental initiatives.

• Net zero commitment: DataBank has set a corporate goal to achieve net zero carbon emissions by 2030, focusing on reducing emissions across Scope 1 (direct emissions) and Scope 2 (indirect emissions from purchased electricity). This includes replacing fossil-fuel-based systems with more sustainable alternatives, expanding renewable energy sourcing, and exploring innovative technologies like carbon capture.
• Green power usage: By the end of 2024, over 60% of DataBank’s total energy consumption (823GWh) now comes from renewable sources. This includes contractually bundled, load-following RECs and renewable power from the grid, representing a significant step toward our decarbonization goals.
• Water conservation: DataBank’s use of internal closed-loop chilled-water systems in many of its data centers eliminates the need for continuous water replenishment. In 2023, the company reported zero water withdrawals at 42 of its facilities, demonstrating the effectiveness of these systems in minimizing water consumption across its operations.
• EPA recognition: For the fourth consecutive year, DataBank was recognized by the U.S. Environmental Protection Agency (EPA) and ranked 54th on its National Top 100 List of the largest green power users. Additionally, the company ranked 15th on the Top 30 list of green power consumers in the Tech & Telecom sector.
• Energy efficiency measures: To improve facility efficiency and reduce emissions, DataBank continues to standardize high-efficiency air-cooled technologies and deploy closed-loop chilled-water systems across its data centers. These systems both reduce energy consumption and eliminate the need for continuous water replenishment, aligning with long-term environmental sustainability goals.
• Operational monitoring: DataBank tracks and reports its energy consumption, energy intensity, and Power Usage Effectiveness (PUE) to its Board of Directors quarterly and to the public annually through its Corporate Responsibility Report. This practice ensures accountability and continuous improvement in energy efficiency.

Together, these efforts demonstrate DataBank’s commitment to environmental stewardship and support its goal of building more sustainable, future-ready data centers.

Building a Greener Digital Future

As demand for digital infrastructure grows, so does the responsibility to build it sustainably. With a clear strategy and bold action across all three scopes of emissions, DataBank is not only lowering its carbon footprint; it’s helping lead the data center industry toward a cleaner, more energy-resilient future.