The direct integration of data centers with renewable energy facilities—through on-site generation, decentralized assets, or Combined Heat and Compute—ensures the physical delivery of green energy while also reducing the load on the power grid.
The direct integration of data centers with renewable energy plants — through on-site generation, decentralized assets, or Combined Heat and Compute — ensures the physical delivery of green energy while alleviating the power grid.
IDED (formerly known as SDIA) released this concept paper as a result of the working group "On-site Power Generation for Data Centers." It highlights opportunities and challenges of true decarbonization of data centers.
Key insights:
Twin Transition: Data centers can decarbonize both the energy system and the digital economy while promoting digitalization.
Three Integration Paths: On-site generation with renewable energies, decentralized renewable assets, and centralized Combined Heat and Compute (CHC) — each path has its own advantages and barriers.
Certificates are Not Enough: Carbon offsetting and purchasing renewable energy through contracts are insufficient. Only the direct consumption of locally generated green energy decarbonizes both the data center and the energy system.
Technical and Non-Technical Barriers: Intermittency, backup power, and costs need to be addressed along with regulatory obstacles in grid integration and heat utilization.
The paper lays the foundation for the physical integration of data centers into the renewable energy system — beyond certificates and financial contracts.