UPDATED 1 Sept: The EI library in London is temporarily closed to the public, as a precautionary measure in light of the ongoing COVID-19 situation. The Knowledge Service will still be answering email queries via email , or via live chats during working hours (09:15-17:00 GMT). Our e-library is always open for members here: eLibrary , for full-text access to over 200 e-books and millions of articles. Thank you for your patience.
New Energy World
New Energy World embraces the whole energy industry as it connects and converges to address the decarbonisation challenge. It covers progress being made across the industry, from the dynamics under way to reduce emissions in oil and gas, through improvements to the efficiency of energy conversion and use, to cutting-edge initiatives in renewable and low carbon technologies.
Data centres turn to low-carbon energy sources
9/10/2024
News
The data centre industry is increasingly looking to low-carbon energy sources such as nuclear, hydrogen and renewables to meet rising demand for electricity while advancing its sustainability goals.
A new report from the US Energy Information Administration (EIA) explores how data centres are working with the civil nuclear power industry to secure electricity offtake to maintain their 24/7 operations.
Constellation Energy recently announced a power purchase agreement (PPA) with Microsoft. Under the 20-year agreement, Constellation Energy is to supply electricity from Unit 1 of the Three Mile Island nuclear plant in Pennsylvania to Microsoft’s data centres in the mid-Atlantic region. The plant had been retired by the then-operator Exelon in 2019 due to profitability concerns. However, Constellation aims to restart the reactor by 2028, pending approval from regulatory authorities, and plans to extend the plant’s operation until 2054. The plant is to be renamed the Crane Clean Energy Center, after Constellation Energy’s former CEO Chris Crane, and will add approximately 835 MW of carbon-free energy to the grid
The deal follows Amazon Web Services (AWS) securing 960 MW from Talen Energy’s Susquehanna nuclear plant in March.
The AWS-Talen deal provides insight into the flexibility often built into these power agreements, notes the EIA. AWS’s contract allows for a gradual increase in the capacity it draws from the Susquehanna plant. That begins with increments of 120 MW and offers the one-time option to cap its commitment at 480 MW. This arrangement reflects the uncertainty surrounding data centre electricity demand, which can vary depending on how quickly facilities reach full capacity and advancements in energy-efficient technology.
Also, unlike traditional grid-supplied electricity, some contracts, like AWS’s, propose bypassing the wider transmission network with a direct connection between the data centre and the power plant.
A broader trend towards sustainable energy
Beyond nuclear power, Microsoft recently unveiled plans to pilot a green hydrogen project in Dublin. It is partnering with ESB to power its data centre control building using hydrogen fuel cells. This marks the first time hydrogen will be used to power a Microsoft data centre in Europe. The technology is expected to provide 250 kW over an eight-week period.
The pilot aims to demonstrate hydrogen’s potential to decarbonise data centre operations. If successful, the technology could replace diesel generators traditionally used for backup power in data centres and reduce the industry’s carbon footprint.
Microsoft has been also expanding its renewable energy portfolio, including more than 900 MW of onshore wind and solar projects in Ireland alone.
The company also recently executed a PPA with National Grid Renewables for its 250 MW Portage solar project in Wisconsin, US. The project is expected to be commissioned in 2027.
Read more about how artificial intelligence is changing the game for data centres across the globe in next week’s feature article, titled ‘Power hungry: how AI fuels data centre energy demand and calls for more sustainability’, by New Energy World Features Editor Brian Davis.
