Data Center Tension Between Power Demands and Sustainability Goals

FORT LAUDERDALE, Fla., March 24, 2025 — Industry leaders acknowledged a growing challenge in balancing surging power demands with environmental sustainability goals during a panel discussion at the MetroConnect conference here on Feb. 25.

"The best we can do is to continue to do the best we can," said Buddy Rizer, executive director of economic development for Loudoun County, Virginia, home to the world's largest concentration of data centers. "We have to continue to do that, but it's really important to be honest and transparent."

The panel, moderated by Danielle Burt of the law firm Morgan Lewis, highlighted the industry's struggles to meet exploding computing demands, particularly with the rise of artificial intelligence, while attempting to maintain environmental commitments.

With U.S. data center power consumption potentially reaching 260 terawatts by 2026, the pressure to reduce emissions while expanding capacity has never been greater.

Loren Long, director of sustainability at Digital Infrastructure Advisors, emphasized the stark differences between U.S. and European approaches to sustainability, noting that in Europe, environmental standards "are not a hope, not a wish, not a best effort—it's a regulatory mandate."

The European Union's Corporate Sustainability Reporting Directive requires data centers to report "gross emissions, not just claiming net zero," Long said. "You have to show the math, which I think is going to make some people uncomfortable."

Several panelists pointed to the limitations of Renewable Energy Credits (RECs) as a solution. Long cited an example of a data center operator in Wales claiming to be "100% renewable" despite the region having minimal solar and wind infrastructure, with the claim based entirely on purchasing RECs.

Mike Nold, vice president of corporate development and strategy for the Americas at Equinix, an infrastructure company providing data center and interconnection services, said his company has achieved 96% renewable energy coverage and remains committed to reaching 100% by the end of the decade, despite surging demand.

Similarly, Charley Daitch from Rowan Digital Infrastructure stated their facilities are backed by 100% renewable energy, either from their portfolio or their customers'.

The industry is exploring multiple approaches to sustainability, including low-carbon building materials, water conservation strategies, and on-site energy generation. Panelists discussed the potential role of natural gas as a transitional fuel, though acknowledging it remains carbon-based.

"Is natural gas better than coal? Yes. Is it better than nuclear? No," Long said.

Utility infrastructure emerged as a significant bottleneck, with panelists describing the interconnection queue for new power sources as "a nightmare." Traditional utilities accustomed to 1-2% annual growth are now facing demands for 20% increases in some regions.

Rahul Gill, President of Truss Energy, highlighted the education gap that exists around energy alternatives: "I think one of the things key is that we don't manage our public relations that well," noting how misconceptions about energy solutions can derail progress with local stakeholders.

Rizer highlighted Loudoun County's efforts to build a 230-kilovolt power ring around "Data Center Alley" and explore microgrid solutions, though he noted these infrastructure improvements often face community resistance.

As the session concluded, the consensus was clear: The data center industry isn't currently achieving sustainability, but feels compelled to continue pursuing sustainability even as it faces looping power demands.

"Nothing is going to get in the way of AI expanding and our need to meet the demand," Nold said. "The onus on us is to be as completely responsible as we possibly can."