Renewable energy sources lead to a high long-term ROI, reduce dependency on fluctuating grid electricity prices, help reduce or avoid costs related to carbon taxes, provide resilience against power outages.
An analysis by the Guardian reveals that the actual emissions from Google, Apple, Meta, and Microsoft data centers are about 7.6 times higher (662%) than officially reported between 2020 and 2022. Carbon emissions are likely to grow in parallel to energy demands for these data centers. According to the International Energy Agency, they contributed 1% to 1.5% of electricity consumption worldwide in 2022, which was before the AI boom started with ChatGPT’s introduction at the end of that year.
Traditional cloud-based apps are far less energy-intensive than AI. An analysis by Goldman Sachs shows a ChatGPT query needs almost 10 times more electric power to process than a Google search, and by 2030, data center power demand will grow 160%. Similar findings are reported by Morgan Stanley, who predict that global data center emissions will reach 2.5 billion metric tons of CO2 equivalent in the next five years.
Renewable energy-powered servers like those used by Canadian hosting provider GreenGeeks can help reduce data center costs over time, though the effect depends on energy efficiency measures, the initial setup, energy market conditions, etc.
There is a pressing need to bring energy costs under control. Constellation Energy recently reported that the Three Mile Island energy plant was getting ready to reopen to meet Microsoft’s skyrocketing energy consumption. Microsoft signed a 20-year agreement to purchase power from the plant, which “hosted” the worst nuclear accident in US history. The facility, which is located in Pennsylvania, is set to reopen following improvements in 2028.
Benefits of renewable energy for data centers
Renewable energy sources such as solar panels and wind turbines may require significant upfront investments, but the low ongoing costs and savings over time lead to a high return on investment. On-site renewable energy systems also reduce dependency on fluctuating grid electricity prices.
Many renewable energy-powered facilities also leverage natural cooling or advanced systems to reduce energy consumption.
As regulations tighten on carbon emissions, data centers powered by renewable energy can reduce or avoid costs related to carbon taxes, emissions trading systems, or penalties for non-compliance.
When combined with energy storage systems like batteries, renewable energy-powered servers can provide resilience against power outages or price spikes in the traditional energy market.
Other advantages of renewable energy servers for businesses
Companies using renewable energy-powered servers demonstrate commitment to environmental responsibility, appealing to eco-conscious customers, partners, and investors. What’s more, highlighting sustainable practices can attract customers and differentiate the brand in competitive markets. In 2024, 72% of consumers purchase eco-friendlier products than in 2019. Global searches for sustainable goods on the internet have risen by 71% in five years, and more than half (55%) of consumers are willing to pay more for environmentally-friendly brands. The prices of products marketed as sustainable increased 2.7 times faster than those not marketed that way.
Increased resilience and reliability
Renewable energy servers reduce exposure to fluctuating electricity prices, helping businesses plan budgets more effectively. They reduce reliance on the power grid, providing stability during energy crises or price hikes. They can also provide backup power during outages.
Long-term financial benefits
Some governments offer tax credits, rebates, and subsidies for adopting renewable energy, and businesses with renewable energy servers may see an increase in property value. What’s more, sustainable practices attract socially responsible investors and funds focused on ESG (Environmental, Social, and Governance.) Around 89% percent of investors include ESG issues in their investment approaches in some form in 2022, up from 84% the previous year. According to a recent survey, 88% of public companies have ESG initiatives in place, but the percentage for privately-owned firms drops to around 65%.
Access to emerging technologies
Renewable energy-powered servers and infrastructure, in general, can be included in smart grid initiatives, selling excess energy back to the grid or utilizing advanced demand-response systems. Finally, moving to renewable sources protects businesses from the diminishing availability and increasing cost of fossil fuels.