Energy Management for Data Centres: Key Considerations

With the rise in demand for computational processing and storage, data centres are booming, and the trend shows no signs of stopping.  In the UK particularly, growth has been exponential in recent years, taking a leading position in Europe. But this growth does not come without challenges; energy is a significant cost for data centre operators due to their high energy consumption, and their characteristic usage patterns require careful energy management. In this article we will outline the basic features of data centres, review the factors impacting their energy usage, and explore how a good energy supplier can support data centre operators.

What are data centres?

In the words of the House of Commons Library, ‘Data centres are the physical manifestations of the cloud.’ They are facilities in which computing power is concentrated, hosting the servers and hardware that enable cloud storage and computing. 

Data centres enable IT resources and services to be delivered on-demand over the internet, rather than requiring the user to own the hardware and store data locally. As internet speeds and data transfer reliability improve, the prevalence of cloud storage and computing is increasing, reflecting a growing reliance on an IT infrastructure that is always available, connected, and accessible from anywhere. 

There are several types of data centre, but these are not mutually exclusive. Data centres may have more than one of these characteristics:

• Enterprise data centres – owned and operated by the organisations that use them, typically storing data only used by the organisation itself.
• Co-location data centres – the data centre operator leases physical space to customers, who then use their own IT hardware. The operator provides the necessary infrastructure, including power, security, cooling, and internet connectivity.
• Co-hosting data centres – similar to the co-location model, but the data centre operator also owns the IT equipment. Customers in this case simply pay for processing and storage capacity.
• Hyperscale data centres – the key difference here is size and capacity. Typically, these sites consume over 100 megawatts (MW) of power, and can occupy thousands of square metres.
• AI data centres – designed specifically to cater to the intense energy demands of the IT hardware required to train large AI models. 
• Edge data centres – these are typically smaller centres located close to end users in an effort to minimise delays (latency) between sending instructions and receiving a response. 

What are the energy requirements of data centres?

As of today, data centres have been estimated to consume approximately 2.5% of the UK’s electricity supply – but this figure is expected to rise sharply over the next five years. 

Typically, the largest proportion of electricity usage within a data centre is attributed to the servers themselves (at around 44%). Close behind are the cooling systems, which account for 40% of demand. This cooling prevents the hardware from overheating, which is a real risk for densely packed computing equipment and can result in severe performance degradation and data loss if not properly managed. 

The exact energy usage profile of a data centre depends on its function. Cloud storage, which has until recently represented the majority of data centre usage, describes remote storage and delivery of data over the internet. This type of usage typically has a fairly flat demand profile – files need to be available around the clock. Cloud computing, on the other hand, describes a model in which services are rendered over the internet. This more frequently shows a variable demand profile through the day. 

As artificial intelligence (AI) becomes increasingly embedded into technologies, a greater proportion of data centre capacity will need to be dedicated to supporting its usage. AI (particularly training the models themselves) involves processing large quantities of data and has a correspondingly large energy requirement – and with a huge user base, it is expected that the energy demand profile for data centres supporting AI will be highly variable and ‘peaky’.  

What can SEFE Energy offer for data centre operators?

Every business has specific needs, priorities, and risk appetite, and data centre operators are no different – one size does not fit all. However, we know that a stable, secure energy supply is top of the list for data centres, and at SEFE Energy, this is our core business. We have nearly two decades of experience in the UK market, and as one of the leading business energy suppliers across various sectors, your energy supply is in safe hands. 

We also have a diverse decarbonisation offering, including highly credible renewable gas and power supply (REGO/RGGOs), as well as a strong portfolio of carbon credits. For data centre operators looking to mitigate the carbon footprint of their operations, these options can provide an ideal route through which to demonstrate a commitment to a lower carbon future. 

For organisations looking to create an additional revenue stream from on-site energy generation, we can help. Our Power Purchase Agreements allow you to sell power generated from a range of setups, including solar and wind. 

Whatever your specific energy goals, we offer a range of contract options that allow our customers to match supply to changing demand patterns. From fully-fixed contracts that lock in costs from the start, to flexible agreements that allow organisations to take advantage of market movement, we have you covered. You can find out more about the contracts we offer via our Product Finder tool.