The Benefits of Low-Carbon Energy Efficiency Technology Adoption for Data Centres

Economies are struggling to achieve a low-carbon transition while also fostering increased digitalisation. EU-level targets for renewable generation, emissions reduction and energy efficiency present a unique challenge for Ireland which features substantial intermittent renewable generation, limited district heating and data centres forecast to consume 37% of national electricity demand by 2028. This study quantifies the key private and public benefits associated with large-scale adoption of energy efficiency technology for data centre cooling. It considers technology that provides cooling to data centres, surplus hot water supply and electricity storage. A unique plant-level model informs a national forecast of data centre energy savings and estimates of hot water supply for use in district heating. National public benefits of adoption are quantified using a power systems model (ENGINE) of the Irish transmission system, subject to 2030 climate policy constraints. Results show that technology adoption could lower sectoral energy use by 26% and supply 12.40 TWh of hot water for a 4th generation district heating network. Technology adoption could reduce renewable electricity generation requirements by 6.92% and lower system-wide emissions by 3%. Results highlight the potential for technology adoption to deliver multiple benefits to private and public stakeholders.