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net zero

Can a data centre achieve Net Zero?
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By OnSite Energy Projects

Achieving net zero is a challenge for any business but data centres are amongst the most power hungry users. Globally data centres consume >3% of total power generation (that’s 140% of the entire UK power generation). So can data centres ever attain net zero?

Some data centres simply buy “green tariffs” which in my view is a cheat, and it won’t be acceptable in the long run.  It also misses the real opportunity of embracing the move towards net zero, which is  to reduce operating costs and be green at local level. Achieving net zero lies in a combination of energy efficiency and local zero carbon generation.

Data centres are often measured by their PUE (Power Usage Effectiveness) which is Total Facility Power consumption divided by IT Equipment Power.  Typically PUE is in the range 1.5-2.0  depending on location.  The traditional approach in building a data centre is to size the power supply and cooling to the maximum compute capacity, with redundancy.  In practice this means a lot of equipment on standby or in reserve just in case.

We typically see several energy savings options in data centres.  For instance, alternative cooling technologies can be used which save significant energy (up to 90% of cooling load), and are also cheaper than traditional cooling and more scalable to deploy as IT power grows.  Resulting PUE can fall below 1.1.

Reducing consumption also narrows the gap that zero carbon onsite generation then needs to address.  The main factors in specifying generation solutions are usually available space on site, scale of generation needed and access to nearby low carbon or renewable generation.

The benefits such an approach brings are (1) cheaper operating costs;  (2) reduced CO2 emissions; (3) long-term cheaper power than grid, and (4) enhanced resilience. These are all key factors in attracting and retaining tenants.   Adoption of the alternative cooling technologies can even enable more dense rack compute power, so enabling more use of space, higher rents and higher occupancy.

The technology may not be there today to go fully net zero, but I am convinced its coming.  Adopting a strategy towards net zero will be vital for attracting and retaining customers.

Onsite Energy Projects enables the achievement of net zero via our innovative data-led approach and zero capex solution. For more details please contact us at info@on-site.energy or on 0161 444 9989.

http://on-site.energy

Sustainable office buildings ‘offer tangible investment benefits’
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Sustainable office buildings can deliver tangible investment benefits to investors through a combination of higher rents and stronger leasing velocity.

The Impact of Sustainability on Value report from JLL also reveals growing occupier demand for sustainable offices in central London that will need to be met in the next decade.

JLL has calculated that the next wave of office development and major refurbishment will need to accommodate at least 8.0 m sq ft of highly sustainable demand from occupiers across central London by 2030.

This demand assessment for central London office stock is based on the space currently occupied by companies which have signed up to science-based- targets (12m sq ft) who have lease events before 2030, demonstrating the increasing demand and need for highly sustainable buildings within central London.

The research also identified demand from companies signing up to net zero carbon commitments, who currently occupy over 1.5m sq ft of space across central London.

JLL’s research found that, based on historical leasing activity, the future development and redevelopment pipeline of offices incorporating sustainability would deliver tangible financial benefits for developers in addition to strong levels of demand.

JLL analysed leasing activity for New Grade A office buildings in central London and found that those with a BREEAM rating of very good or higher achieved higher rents than those without a rating and that the average rental premium over non-rated buildings over the last three years was around 8%. The analysis also showed that New Grade A buildings with an A or B EPC rating achieved a rental premium of 10% over comparable offices with lower ratings over the same period.

The research further demonstrated that payback for investors who target higher BREEAM ratings is rewarded with higher occupancy rates throughout the cycle. JLL analysed the leasing velocity of 120 central London development schemes completed between 2013 and 2017 and found that those that have an outstanding/ excellent rating tended to show a higher pace of leasing and have lower vacancy rates – of 7% compared to 20% for those rated very good – 24 months after completion.

Neil Prime, head of central London offices markets and UK office agency at JLL, said: “Our analysis of existing environmental ratings shows that overall sustainable buildings deliver better returns for investors against the benchmarks of void rate, leasing velocity and the rents achieved. This provides the industry with a clear and defined base case to begin to formulate an understanding of how the next generation of sustainable offices – for which there is demonstrable demand – will perform.”

Sophie Walker, UK head of sustainability at JLL, added: “Clearly the urgency to build and redevelop these offices in central London to support corporate environmental and people goals is only speeding up.  The first developers to undertake the task will reap the rewards of high levels of demand and the intrinsic higher performance of their product. This opportunity to provide sustainability as a point of differentiation and to appeal to forward-thinking occupiers will really play out over the next decade.

“Beyond 2030, tougher building regulations will drive a reduction in energy consumption and carbon emissions and mandated sustainability performance will become more defined – this may mean that the premium associated with it will disappear and buildings that don’t comply will underperform, leading to the displacement of tenants and lost rents due to costly retrofits.”

Do you have a Net Zero strategy?
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The UK has become the first major economy to pass laws requiring all greenhouse gas emissions to be net zero by 2050.  The electricity grid is decarbonising (its carbon intensity has dropped by over 50% since 2011 to where it is today – 254 g CO2 per kWh) and is forecast to drop another 50% by 2030.  Grid costs are rising to pay for this transition.

A key lies in the word “NET” because whilst some businesses will struggle to reduce carbon, others could actually become POSITIVE – e.g. generating excess renewable power.  New business models and revenue streams could emerge though

So what does this mean for YOUR business ?  How do you develop a net zero strategy ?

  1. Significant changes will be needed to the way you do business and use energy.The changes could impact how your employees come to work, how you distribute your products, sell your products, procure your raw materials and use your facilities.  Processes may require to be redesigned and reengineered.  This will mean the ability to embrace change, challenge existing assumptions, innovate and understanding of alternative methods and costs

Businesses should be looking NOW at their own operations and looking for ways to BOTH reduce consumption AND generate their own low carbon power locally in a sustainable way.  Simply buying a green energy tariff is not sufficient. There are many very good long term business benefits by embracing this genuinely, which can become a source of competitive advantage.

For businesses that use a lot of gas, this is going to be particularly challenging. Gas is cheap (5-6 x cheaper than electricity), so changing away from gas will be expensive.

  1. Those changes will have financial costs that may not be affordable within conventional capex constraints.New business models such as energy as a service are increasingly available to help bridge the gap, and enable changes to happen.

NET ZERO WILL REQUIRE NOTHING SHORT OF AN INDUSTRIAL REVOLUTION, with new business models and technology, and all within the next 30 years. 

These are the reasons Onsite Energy Projects exists – we help businesses innovate, reengineer their energy supply chain and implement the full potential of both energy efficiency and on-site generation measures.  We recognised the challenge of capex availability and can provide a no-capex, off-balance sheet, solution to make it all happen.

If you would like to know more email us at info@on-site.energy or call on 0161 444 9989.

Onsite Energy Projects provides energy savings and energy generation solutions to energy intensive businesses, without capex if required.