Renewables and Energy: Infrastructure Builds Driving Sustainable Power

Microgrids are key to accelerating DC growth, research finds

A combination of renewables, grid balancing engines and energy storage make for the most cost-effective microgrids to power data centres, while also cutting emissions and providing vital grid balancing to enable the energy transition, according to a new research paper from technology group Wärtsilä and energy solutions business AVK. The paper, Data centre dispatchable capacity: a major opportunity for Europe’s energy transition, provides new analysis on how data centre microgrids can reduce grid infrastructure spending, emissions and wasted energy, while providing a balanced path for the energy transition.The analysis finds that powering the data centres across Europe by optimised microgrids could create a significant bank of dispatchable power, supporting the entire continent’s energy transition. The rapid growth of AI is driving increased demand for data centres across Europe, which is expected to increase by 250% by 2030, from 10GW to 35GW. With the continent’s grid facing constraints from high energy prices and bloated grid connection queues, data centre operators are increasingly turning to off-grid solutions to power these energy-intensive assets. Anders Lindberg, President of Wärtsilä Energy and Executive Vice President of Wärtsilä, says, “The growth of AI over recent years has been extraordinary, and as it continues to transform the way we live and work, it drives a need for more energy. This is causing significant challenges for grid operators across Europe, who are struggling with rising costs and up to a 10-year waiting time for a grid connection. “By investing in microgrids, data centres can sidestep energy constraints, and with the right technology mix of renewables, grid balancing engines and energy storage, can ensure their emissions profiles and costs do not outweigh the huge benefits that AI brings. AVK CEO Ben Pritchard comments, “The answer to the challenges we face in combatting climate change is as much to do with changing behaviours as developing new technologies. And the key to behavioural change is the recognition that there are different ways of doing things. The solutions outlined in this paper are not impractical; they are based on real-world cases and calculations. All that’s needed to make them more widespread is for investors, operators, equipment suppliers, planners, policy makers to recognise the widespread benefits that sharing dispatchable data centre capacity with the grid can bring and pass that knowledge on.” In addition to benefits created by microgrids, engine power plants bring cost efficiencies to data centre power generation. Modelling an 80MW data centre, a combination of engine power plants, renewables, and energy storage provides the lowest levelised cost of electricity – at 108 EUR/MWh – in comparison to three other real-world scenarios. It also offers a low emissions scenario in comparison to the other modelled scenarios, and particularly in comparison to gas turbines. The emissions of engine power plants can also decrease as sustainable fuels become commercially available. “Through investing in flexibility, microgrids can have the lowest possible cost, while cutting emissions dramatically compared to other pathways including turbines. This flexibility can have a significant, positive impact on the continent’s digital and energy transition,” Anders Lindberg states. On current trajectories, 40% of existing AI data centres will be operationally constrained by power availability by 2027. Microgrids can take this new strain off the grid in the short term and when grid connection is achieved, excess energy generated can be sold. As well as furthering cost reductions for data centre operators, this can provide vital flexibility to Europe's power challenges. Read the new research paper by clicking here. For more from AVK, click here.

Inspired, VIRTUS sign wind-powered tri-party CPPA

Inspired, a UK commercial energy and sustainability advisory firm, has announced the signing of a tri-party corporate power purchase agreement (CPPA) with VIRTUS Data Centres, a UK data centre provider, and Lynn and Inner Dowsing (LID) windfarms. VIRTUS has subscribed to a combined power purchase agreement (PPA) totalling 31MW of wind power, representing 16% of the total generation from Lynn and Inner Dowsing (LID) offshore windfarms, with a commencement date of 1 October 2025. This agreement seeks to ensure a long-term supply of renewable energy. The agreement A CPPA is a long-term energy contract between a corporate customer and a renewable power generator/developer. They are becoming an increasingly popular choice for companies wanting to reach net zero as they offer up to 100% renewable power. Having a CPPA means the energy businesses use can be traced back to a specific renewable energy project, such as a wind or solar farm, which feeds an equivalent amount of power into the grid. David Cockshott, Chief Commercial Officer at Inspired, says, “Inspired has been proud to partner with VIRTUS as their dedicated energy consultant. We are excited to continue supporting their sustainable journey and to commence this tri-party agreement, which allows renewable power to flow directly to their data centres.” Helen Kinsman, SVP Commercial and Regulatory Affairs at VIRTUS, adds, “As an energy intensive user, we know it’s our responsibility to minimise the environmental impact from all our data centre facilities. Hence, since going live with our first site in 2011, we have been procuring power from 100% renewable sources. "We are committed to delivering reliable, resilient, and responsible digital infrastructure to our customers and operate the gold standard in sustainable data centres in the UK and Europe.” The renewable power will be delivered by Lynn and Inner Dowsing (LID) offshore windfarms, owned by funds managed by Macquarie Asset Management. Macquarie Asset Management is supported by XceCo, a UK asset management company specialising in the full project life cycle of renewable energy ventures. The offshore wind farms are located 5km off the east coast of England, by the town of Skegness in Lincolnshire. Bailey Bradley, Managing Director and co-founder XceCo, comments, “The successful delivery of this CPPA for one of our offshore wind farm assets under management stands as a testament to the exceptional collaboration between XceCo and all stakeholders involved in delivering this transaction. "The commercial complexities involved in delivering this CPPA have proven to be a great experience. Through painstaking efforts, continuous multi-party engagements, a shared vision, and unwavering commitment, we turned a complex challenge into a powerful achievement, generating success together." Inspired also provide a variety of additional services to VIRTUS as their dedicated energy and sustainability consultant. For more from VIRTUS, click here.

Equinix explores new energy sources for DCs

Equinix, a digital infrastructure company, is working with alternative energy providers to secure reliable electricity for its global network of AI-ready data centres, including facilities in Europe. The company’s diversified energy strategy combines traditional utility arrangements with new on-site power generation, fuel cells, and next-generation nuclear energy. According to the International Energy Agency, global electricity demand is forecast to rise by 4% annually through 2027, driven by electrification, artificial intelligence, and industrial growth. This increase is placing pressure on utilities and ageing grids, highlighting the need for new energy infrastructure to support expanding data centre operations. Equinix says it is investing in grid upgrades with utility partners, including new substations and backup systems designed to improve reliability during outages. The company is also expanding its use of fuel cells and natural gas for on-site generation, while supporting the development of advanced nuclear technologies to provide clean, stable power in the future. “Access to round-the-clock electricity is critical to support the infrastructure that powers everything from AI-driven drug discovery to cloud-based video streaming,” says Raouf Abdel, Executive Vice President of Global Operations at Equinix. “As energy demand increases, we believe we have an opportunity and responsibility to support the development of reliable, sustainable, scalable energy infrastructure that can support our collective future.” Equinix has signed agreements with several nuclear developers: • Oklo – Agreement to procure 500MW from next-generation Aurora fast reactors• Radiant – Preorder of 20 Kaleidos microreactors, designed for rapid deployment• ULC-Energy with Rolls-Royce SMR – Letter of Intent for up to 250MWe in the Netherlands• Stellaria – Agreement for 500MWe using molten salt Breed & Burn technology Equinix has also expanded its use of advanced fuel cells through a long-term agreement with Bloom Energy, covering more than 100MW across 19 US data centres. Ali Ruckteschler, Senior Vice President and Chief Procurement Officer at Equinix, comments, “The potential challenges to powering reliable and sustainable digital infrastructure are considerable. "However, Equinix has always been at the forefront of energy innovation, signing the data centre industry’s first agreement with a SMR provider and pioneering the use of fuel cells a decade ago.” Equinix says it remains committed to sourcing 100% renewable energy by 2030 and reported 96% global renewable coverage in 2024, with 250 sites already running entirely on clean energy. The company is also expanding the use of liquid cooling technologies and adopting ASHRAE A1 Allowable standards to improve operational efficiency. For more from Equinix, click here.

Why data centres should care about atmospheric chemistry

Data centres are multiplying to satisfy the world’s appetite for computational power, driven by AI and other emerging technologies. The outcome has been an unprecedented surge in energy demand and greenhouse gas (GHG) emissions. Here, Alexander Krajete, CEO at emissions treatment specialist Krajete, explains why data centres must look beyond their direct carbon footprint and adopt a holistic approach to multi-emission capture and valorisation: What's changed? Data centres once had a modest footprint, accounting for under 1% of global GHG emissions, according to the International Energy Agency. But rising demand from AI, streaming, and blockchain is set to more than double their energy use from 415 TWh in 2024 to 945 TWh by 2030. Some tech giants share these predictions. Google stated in its 2024 Environmental Report that “in spite of the progress we're making, we face significant challenges that we’re actively working through. In 2023, our total GHG emissions increased 13% year-over-year, primarily driven by increased data centre energy consumption and supply chain emissions.” A holistic approach to data centre sustainability Some leading tech companies claim to have purchased or generated enough renewable electricity to match 100% of their operational energy consumption. As the IEA notes, buying renewable energy or certificates doesn’t guarantee a data centre runs on clean power 24/7 due to the intermittency of renewables and potential mismatches in location or grid. A more accurate, holistic calculation also includes indirect emissions throughout the supply chain — the so-called scope three emissions. These include mining raw materials like copper, silicon, and lithium - used in a data centre’s server racks - or the production of building materials like aluminium, steel, and concrete. Complying with new sustainability regulations Although not specifically aimed at data centres, the EU’s Corporate Sustainability Reporting Directive (CSRD) requires organisations, including tech companies, to report on their sustainability performance, including scope one, two, and three emissions. In addition, in 2024, the European Commission adopted legislation specifically aimed at “establishing an EU-wide scheme to rate the sustainability of EU data centres.” To comply with these new legal obligations, data centre operators must examine their environmental footprint holistically. Why atmospheric chemistry matters to data centres Although reducing the amount of CO2 in the atmosphere remains vital, we must also address other gases that can harm our ecosystems and climate. These chemicals include nitrogen oxides (NOX), carbon monoxide (CO), hydrogen sulphide (H2S), sulphur oxides (SOX), hydrocarbons, and various metals. Once released, these gases can react with one another, leading to secondary pollutants. The consequences of these are yet to be fully understood. They originate from combustion-heavy sectors like mining, cement, and energy, all contributors to scope two and three emissions. Traditionally, there have been two ways of capturing atmospheric pollutants. Take CO2 as an example. The sacrificial method uses limestone to remove CO2 and other gases, creating non-reusable carbonates. The regenerative amine-based method produces reusable amine carbamates but emits harmful, amine-based degradation products. Advanced adsorption is a low-energy, low-emission regenerative process that captures and valorises emissions at temperatures below 100°C, far lower than the 150–200°C required for amine-based methods. Pollutant gases weakly bind to a complex inorganic filter, allowing for easy separation. It can be applied at the exhaust point of any combustion process, such as cement factory chimneys or stationary diesel engines. By supporting the adoption of advanced adsorption technology throughout their supply chains, data centres can address their scope two and three emissions more effectively and meet their sustainability goals. Multi-emission capture is the key to sustainable data centres Thanks to innovative technologies like advanced adsorption, we can go beyond capturing and neutralising pollutants like nitrogen oxides. We can also transform these emissions into valuable by-products like fertilisers, supporting a circular economy. As the world’s insatiable demand for data grows, data centres must adopt holistic sustainability strategies that withstand the test of time. Multi-emission capture must be part of the solution, enabling data centres to balance the growing need for powerful AI with the needs of our planet.

Siemens earns Platinum in EcoVadis Sustainability Rating

German multinational technology company Siemens has been awarded the Platinum medal in the 2025 EcoVadis Sustainability Rating. This achievement places Siemens among the top 1% of around 130,000 companies assessed worldwide by EcoVadis, a provider of business sustainability ratings. The Platinum medal, according to the company, "underscores Siemens' commitment to sustainability and reflects achievements across all of EcoVadis’ assessment areas: Environment, Ethics, Labour & Human Rights, and Sustainable Procurement." EcoVadis assessed Siemens with a score of 85 points. In addition, Siemens Mobility was assessed separately, achieving a score of 84 points. More than 90% of Siemens’ business enables customers to achieve a positive sustainability impact across three key areas: decarbonisation and energy efficiency, resource efficiency and circularity, and people centricity & society. “Achieving the highest-ever score and being among the top 1% of all rated companies reinforces our position as a sustainability leader and recognises the dedication of our people,” claims Eva Riesenhuber, Global Head of Sustainability at Siemens. “Sustainability is at the core of our business, and we are continuing to scale our impact in the areas of industry, infrastructure, and mobility, while empowering our customers to become more competitive, more resilient, and more sustainable.” Andreas Mehlhorn, Head of Sustainability at Siemens Mobility, adds, “Being awarded the EcoVadis Platinum medal once again is a strong testament to our leading position in the rail industry. "It reflects our commitment to integrating sustainable solutions for our customers by maintaining rigorous sustainability standards across our operations and supply chain.” The EcoVadis business sustainability rating is based on international sustainability standards, including the Ten Principles of the UN Global Compact, the International Labour Organization (ILO) conventions, the Global Reporting Initiative (GRI) standards, and ISO 26000. For more from Siemens, click here.

Nxtra signs partnership with AMPIN

Indian data centre operator Nxtra (by Airtel) has signed a new agreement with AMPIN Energy Transition for an additional 125.65 MW of solar-wind hybrid energy via Inter-State Transmission System (ISTS) connected projects. This brings the total renewable energy capacity supplied to Nxtra by AMPIN to more than 200 MW. The added capacity will be delivered in two phases, through captive projects located in Rajasthan and Karnataka. These will complement AMPIN’s existing supply of solar energy to Nxtra through intra-state, open access arrangements in Uttar Pradesh, Maharashtra, and Odisha. Under the new agreement, AMPIN will expand its service to 11 additional states and introduce new technologies, including large-scale ISTS-based renewable energy and consolidated supply from a single Independent Power Producer (IPP). Ashish Arora, CEO of Nxtra, says, “Sustainability is not just a commitment, it is our responsibility and our opportunity to lead. "By powering our digital infrastructure with over 200 MW of renewable energy through our partnership with AMPIN, we are setting new standards for the industry. "This achievement highlights our leadership in using ISTS-backed clean energy to power our facilities sustainably, boosting reliability, and ensuring tangible climate impact. "At Nxtra, we are determined to drive innovation and inspire action, ensuring that our operations not only support India’s digital growth but also protect its environment for generations to come.” Pinaki Bhattacharyya, founder, Managing Director, and CEO of AMPIN, adds, “With this partnership, we demonstrate that through a seamless blend of inter-state and intra-state renewable energy solutions backed by a pan-India presence, we can take any customer through a nearly 100% energy transition. "Nxtra by Airtel, a leader in the data and fast-growing data centre space, shares our vision for sustainability and we are proud to make data centres green by this association.” AMPIN’s approach aims to establish long-term relationships with customers by offering energy supply across various technologies and regions. It says the collaboration with Nxtra highlights the role of large-scale renewable energy agreements in increasing operational efficiency and reducing carbon emissions. Nxtra, likewise, says it has committed to reaching net zero emissions and is aligning its efforts with Science Based Targets initiative (SBTi) guidance. As part of this effort, the company is implementing a range of measures to reduce its direct (scope 1) and indirect (scope 2) greenhouse gas emissions. In June 2024, Nxtra joined the global RE100 initiative, pledging to source 100% of its electricity from renewable sources. It became the first data centre operator in India, and the 14th Indian company overall, to join the programme. For more from Nxtra, click here.

Xela Energy gains approval for Hursley solar project

Xela Energy (formerly Clean Energy Capital), a UK-based provider of private-wire renewable energy systems for data centres and industrial-scale power consumers, has received full planning permission for a 5MW solar farm that will supply renewable electricity directly to IBM’s Hursley campus near Winchester, England. The project is the first in the UK to connect a data centre to a dedicated solar installation via a private-wire arrangement. The solar farm will be built on agricultural land located close to the Hursley site and will provide traceable renewable energy directly to the IBM campus. By operating independently of the UK’s main electricity grid and without reliance on government subsidies, the project is intended to contribute to national decarbonisation targets, while also helping to reduce strain on grid infrastructure and improve overall energy security. Once operational, the facility is expected to generate nearly 5 million kWh of energy per year. Over its lifetime, this is estimated to reduce CO₂ emissions by 46,000 tonnes - equivalent to planting around 60,000 trees. In addition to powering IBM’s 27,000ft² data centre, which opened in 1977, the project includes landscaping features and dedicated areas to support Biodiversity Net Gain. Xela Energy, which has a growing pipeline of private-wire schemes, describes its approach as land-led rather than consultancy-led - focusing on securing sites near large energy consumers to provide fully funded, dedicated clean energy solutions. The company develops, builds, owns, and operates each installation directly, delivering "low-cost, traceable electricity" to its clients. “This project represents a major milestone in how large power users can decarbonise with certainty, speed, and integrity,” claims Alexander Goodall, founder and CEO of Xela Energy. “It’s a blueprint for how the UK can decarbonise its most energy-intensive industries at scale. If our energy is unsustainable, so is our existence. "That’s why Xela Energy exists: to make clean, cost-effective power available directly at the point of use without waiting for policy, grid reform, or subsidies. Projects like this show we don’t have to choose between economic growth and environmental responsibility, it’s possible to have both.” The Hursley installation is set to begin construction in the coming months. It comes at a time when data centre energy demand is increasing, driven by generative AI and other high-performance computing workloads.

Allegro argues case for sustainable energy storage

As data centre expansion accelerates to meet the demands of AI, cryptocurrencies, and cloud services, Australia-based developer Allegro Energy is arguing for the relevance and applicability of its long-duration energy storage (LDES) technology in "enabling scalable, sustainable energy solutions tailored to the unique needs of modern data centres." With data centres operating on consistent, high-load profiles, they are uniquely positioned to benefit from a clean power strategy that combines renewable generation with long-duration energy storage. Allegro Energy’s modular, scalable, and environmentally-friendly battery systems, according to the company, "present a solution that overcomes the prohibitive cost, scalability, and sustainability challenges associated with traditional lithium-ion or vanadium-based systems." • Modularity & scalability — Allegro’s LDES systems are designed to grow in parallel with a data centre’s needs, allowing incremental investment and deployment. • Renewable compatibility — The system pairs with solar and wind energy, aiming to help data centres navigate grid volatility and peak pricing while advancing towards net zero carbon targets. • Climate-friendly storage chemistry — The water-based electrolyte technology is not resource-constrained, hoping to offer a low-impact alternative that can be deployed at scale. “The exponential growth of generative AI, cloud computing, and digital services has made energy a critical chokepoint in data infrastructure,” says Thomas Nann, CEO of Allegro Energy. “We believe the future of high-performance computing does not need to come at the cost of the planet. With our technology, data centres can be powered entirely by renewables, supported by reliable, cost-effective long-duration storage.” Allegro Energy’s proprietary, locally manufactured micro-emulsion electrolyte technology eliminates the need for scarce or rare metals, reducing fire risk and allowing for extended storage durations at a lower cost.

Digital Realty adopts PPC’s energy matching programme

Digital Realty, a provider of cloud- and carrier-neutral data centre, colocation, and interconnection systems, today announced that it has adopted PPC’s 24/7 hourly renewable energy matching programme to power its three highly-connected data centres in Athens, Greece, with clear, real-time matched clean electricity. The initiative builds on the company’s existing 24/7 energy matching programmes in France and Sweden and supports improved transparency and reporting of renewable energy use. The programme, provided by PPC, Southeast Europe’s largest electric utility group, has been designed to help large corporate customers accurately trace and report their clean energy usage. Leveraging PPC’s renewable energy assets and digital tracking tools, the programme seeks to enable businesses to verify both the source and the time of clean electricity consumption on an hourly basis. The service includes the full management of Guarantees of Origin (GOs) and uses software from Granular Energy to enable real-time tracking of renewable energy generation and associated carbon emissions. It aims to "empower customers to credibly report Scope 2 emissions and progress towards net zero targets." Digital Realty’s participation represents a sizeable deployment of hourly energy matching in the region, helping to support the development of a more resilient and decarbonised power grid. By matching renewable energy generation and consumption in real time, the programme aims to create clearer signals for investment in clean energy technologies and infrastructure. “This programme with PPC strengthens our commitment to transparent and data-driven energy sourcing,” comments Alexandros Bechrakis, Managing Director, Digital Realty in Greece. “It helps us support our customers’ renewable energy goals with credible, hourly-matched clean electricity – delivering greater visibility into how and when clean energy is being used across their digital infrastructure.” “At PPC, we are shaping the future of energy by enabling our clients to lead with credibility in a carbon-free economy,” claims Angelos Spanos, Chief Marketing & Products Officer at PPC. “Through 24/7 carbon-free energy hourly matching, we provide our corporate customers with verified, real-time insights into their renewable energy consumption. "This collaboration with Digital Realty demonstrates how forward-looking energy solutions can accelerate the clean energy transition for entire industries.” The programme, according to Digital Realty, supports the company’s science-based targets for carbon emissions reduction and aligns with its broader sustainability strategy, which includes a commitment to carbon neutrality across its data centre operations and value chain. As part of this strategy, Digital Realty already matches 100% of the electricity used across its entire European portfolio with renewable energy. For more from Digital Realty, click here.

Clean Energy Capital rebrands to Xela Energy

Clean Energy Capital (CEC) has rebranded as Xela Energy – marking an evolution from a start-up renewables developer to a fully-funded, institutional energy business delivering long-term infrastructure at scale. The company says its rebrand reflects its "maturity as a company," from a start-up, seed-stage renewable energy developer to an established enterprise energy business that builds, owns, and operates private wire infrastructure for global businesses, including data centres, industrial manufacturing, pharmaceutical, and blue-chip technology organisations. The company now provides its customers with access to renewable power, alongside the pre-requisite experience in building and owning renewable energy assets, including construction management, asset management, operations, H&S, regulatory and commercial compliance, contract management, billing, and customer service. Alexander Goodall, Founder & CEO at Xela Energy, comments, “Our rebrand to Xela Energy reflects the business we’ve become — and one we continue to build upon. It’s not just about a new name, it’s about delivering real infrastructure to solve our customers’ challenges proactively, not reactively. From a four-person start-up to a team of more than 25 dedicated industry experts, it’s our people who make that possible. Their belief, drive, and commitment have shaped Xela from the very start, and they continue to push us forwards every day. Xela Energy has grown from origins in development to delivering large-scale renewable energy solutions for some of the UK’s largest power users. “With capital secured and land in strategic locations, Xela Energy brings shovel-ready, strategically located projects to the table [...] and is positioned to power a more sustainable, industrial economy. As we enter this new phase, we’re creating an organisation that is forward-looking, technology-agnostic, and ready to scale. At the heart of this rebrand is a simple belief: if our energy is unsustainable, so is our existence.” The company claims that, due to a turbulent macroeconomic environment, UK commercial and industrial energy users can no longer rely on the grid to consistently deliver affordable or green energy, with Britain paying some of the highest prices of any country in the world for electricity, forcing businesses to seek off-grid solutions. Xela Energy says it responds to this demand by delivering renewable infrastructure located where power is needed, making renewable power an "undeniable part" of the answer to these industry-wide challenges. The company seeks to offer large-scale energy users access to clean, reliable, and cost-effective power, allowing them to reduce emissions, lower costs, and eliminate up-front capex. It continues by suggesting that central to this approach are Xela Energy’s Renewable Energy Service Agreements (RESAs): a private wire equivalent to a traditional power purchase agreement (PPA). RESAs, the company claims, enable Xela Energy customers to fix pricing, shielding them from future energy price spikes at scale and delivering industrial-scale green power directly to a site via private wire. These renewable energy projects are funded and built off-balance-sheet with the intention to help preserve customer capital for core growth activities directly into the customers infrastructure.