The artificial intelligence industry is growing rapidly, with top markets in the United States seeing a 70% jump in new data center construction compared to the same time period last year. That uptick will likely grow; with experts expecting a more lax regulatory environment and a continued increase in data center construction with President Trump’s return to the White House. This boom in data center construction highlights a glaring issue in the current trajectory of our clean energy goals: We need to decarbonize the built environment at scale. A great place to focus decarbonization efforts here is with data centers through embracing circular economy principles.
Why do data centers present an unmatched opportunity for energy savings? They are among the most energy-intensive buildings, consuming 10 to 50 times the energy per floor space compared to a typical office building. This is primarily due to the need for continuous operation and extensive cooling systems. The majority of energy consumption in data centers is attributed to cooling systems and servers, followed by network devices and storage drives. Large data centers with tens of thousands of devices can require over 100 megawatts of power, enough to supply approximately 80,000 households. That begs the question, how can we get them to net zero?
Tackling a footprint expanding in seemingly every corner of the world will require a greater holistic, cost-effective, circular economy approach that empowers us to truly decarbonize data centers at scale. Ways to do this include repurposing waste heat, as data centers generate a significant amount of heat as a byproduct of their operations. Instead of dissipating this heat, it can be redirected to support local heating systems or agricultural projects. For example, some data centers use waste heat to warm nearby residential and commercial buildings or to maintain optimal temperatures in greenhouses. Another practice is e-waste management. Instead of discarding old servers and components, data centers can refurbish and reuse them. This practice extends equipment life. Google has been a pioneer here, refurbishing servers and other hardware to maximize their lifespan, and extending this behavior up and down the product line and value chain.
Embracing these circular economy principles requires adopting a comprehensive approach that combines technological innovation, operational efficiency, and strategic planning to reduce carbon emissions in data centers, and significantly contribute to global decarbonization efforts. And while the initial costs for adopting circular economy practices often require a significant investment — including money for new technologies, redesigning infrastructure, and training staff and personnel — what you can expect to see in the immediate and long term is nothing short of extraordinary. This is particularly true when you look at the specific initiatives focused on lowering emissions that will accelerate the effectiveness of the overall approach. By refurbishing and reusing servers and other hardware, data centers can significantly cut down on the costs associated with purchasing new equipment. Additionally, effective recycling programs help recover valuable materials from obsolete equipment, which can be reused in new products, reducing material costs.
When it comes to energy efficiency, implementing circular economy practices can offer some truly transformational benefits. First off, it lowers energy bills. Implementing energy-efficient cooling systems and optimizing power usage can drastically reduce energy consumption, leading to lower energy bills. Also, while the initial setup for renewable energy sources like solar or wind can be expensive, they provide long-term cost benefits by reducing reliance on traditional, more expensive energy sources. And then when you look even further at what’s possible for accelerating the reduction of emissions, installing solar panels or wind turbines on-site can generate renewable energy. Look at what Apple is doing. All of their data centers have been powered by 100 percent renewable energy since 2014.
Still, implementing circular economy practices comes with challenges that must be considered such as data security when reusing or recycling hardware. Hard drives and other storage devices must be thoroughly wiped or destroyed to prevent data breaches, which can complicate the reuse process. And then, of course, supply chain coordination is difficult. Effective circular economy practices require coordination across the supply chain. This includes manufacturers, data center operators, and recycling firms. Aligning these stakeholders to ensure materials are reused or recycled efficiently can be complex.
However, with a circular economy, our decarbonization efforts can be innovated, overhauled, transformed, and accelerated in ways we never thought possible. To safeguard that progress, and avoid the loss of data we will see in centers facing the threat of climate change, a renewed commitment to protecting these centers will need to be made en masse.
Mahesh Ramanujam is the Co-Founder, President, and CEO of the Global Network for Zero, the world’s premier net zero certification body for for buildings, businesses, communities, cities, products, processes, and more. Prior to GNFZ, he was the President and CEO of the U.S. Green Building Council.
