As data centers quietly fuel the digital revolution, their environmental footprint is growing louder. With energy demands rivaling millions of homes and critical water usage in stressed regions, these infrastructures risk accelerating the very climate crisis we must solve. But if designed with sustainability at the core, they can become catalysts for climate innovation. This article explores how data centers can shift from being part of the problem to driving the solution.

Data Centers’ Impact: Designing for a Greener Future

Data centers are expanding rapidly, but with this growth comes a significant environmental cost.

A single data transaction processed through modern data center infrastructure can use significantly more energy than traditional computing, and in the US alone, data centers are expected to consume enough power by 2030 to run 26 million homes.

With temperatures projected to exceed 2.5°C warming, we need to ask: how do we ensure the growth of digital infrastructure doesn’t come at the expense of accelerating the planet’s uninhabitability?

Data infrastructure is critical to sustainable development as it can enable climate solutions by powering digital innovation, yet it also carries significant socio-environmental consequences. As we navigate this pivotal moment, we have an opportunity to shape the future of data centers as enablers of positive, sustainable innovation.

 

Driving the Green Transition

Time is critical in the fight against climate change, and data centers are accelerators of the digital world. This makes them a double-edged sword for sustainable development. For this reason, we must be strategic – rapidly assessing impacts, minimizing harm, and implementing effective solutions.

Data centers already support sustainability in several ways:

→ Advancing climate research and impact analysis: Data infrastructure enables the processing of vast datasets at unprecedented speeds, improving climate modeling and ESG impact assessments. Tools like Google’s Earth Engine combine satellite imagery with geospatial data, simplifying analysis of deforestation and land use. Centralized computing in efficient data centers also enables better organization of unstructured earth data, helping to localize global climate models and generate actionable insights.

→ Enhancing disaster preparedness and response: Data centers underpin critical services that improve the accuracy of climate-related disaster predictions and early warning systems. Real-time processing capabilities help authorities prepare for floods, hurricanes, and extreme weather, essential for climate adaptation strategies.

→ Accelerating scenario modeling for adaptation and mitigation: The computing power of modern data centers dramatically reduces the time required for modeling future climate scenarios, aiding policymakers in strategic decision-making. This technology has already been applied to simulate the impact of sea-level rise on urban planning, providing communities with insights to mitigate long-term risks.

→ Streamlining ESG reporting and optimizing resources: Centralized data storage and processing support more efficient ESG reporting, reducing the burden of data collection and analysis. Increasingly, technology companies are using this infrastructure to accelerate action by automating time-consuming compliance processes.

→ Driving innovation in materials science: High-performance computing supported by data centers is revolutionizing materials science by simulating and testing properties without physical experimentation. This accelerates the development of climate-resilient materials like advanced batteries and fire-resistant compounds, critical to both climate mitigation and adaptation.

The Environmental Cost of Data Centers

While the potential of data centers is vast, their environmental footprint is substantial.

→ Energy consumption: Data centers already account for around 2% of global electricity use2. Their energy demands are expected to grow significantly, especially as digital services and cloud computing expand. In the US alone, consumption could reach 35 gigawatts by 2030.

→ Water usage: Cooling systems in data centers consume millions of liters of water annually. A medium-sized center (15 MW) uses as much water as three hospitals or more than two 18-hole golf courses. Notably, Google’s data center in Council Bluffs, Iowa, consumed nearly 1 billion gallons of water in 2023, the highest among its facilities.

→ Material demands: The construction of server farms and the production of cooling systems require vast quantities of metals and water-intensive manufacturing, contributing further to environmental stress.

→ Localized resource strain: Many data centers are located in areas already experiencing water and energy stress. In the United States, one-fifth of data centers are in water-scarce regions7. Places like Taiwan and Arizona are facing increased pressure from growing demand for digital infrastructure.

 

This is especially concerning as we are no longer on track to stay below 1.5°C of global warming, nor even 2°C. We are heading toward 2.5°C, bringing widespread ecosystem collapse, more frequent extreme weather events, and serious consequences for food security, sea levels, and human health. The billions invested in expanding data infrastructure, without a sustainability- first approach, only exacerbate these risks.

A Smarter Approach to Sustainability

Despite the challenges, some data centers are making meaningful progress toward sustainability. Many are actively reducing their water and energy use. In Texas, Washington, California, and Singapore, reclaimed and recycled water is used for cooling. Rainwater harvesting systems have been implemented in the Netherlands, Ireland, and Sweden.

Others are going even further. In Denmark, waste heat from data centers is repurposed to heat over 6,000 homes, turning a costly byproduct into a community asset, while also reducing the need for parallel energy infrastructure.

These examples offer a glimpse into what’s possible. But like health and safety standards, sustainability must become a baseline requirement, not a bonus.

Priorities for 2025

Whether data centres become part of the problem or the solution depends on the ecosystem we build around them. This demands thoughtful planning during the development phase and a strong governance framework. Integrating sustainability into the design and operation of digital infrastructure is no longer just about regulatory compliance or mitigating negative impacts, it’s about futureproofing assets. In areas such as waste heat reuse, we’re already seeing strong business cases.

 

With deep expertise across AI, ESG, and Digital Infrastructure, Talan is uniquely positioned to support this transformation.

 

We help organisations understand:

• The ROI of sustainable data centre design

• The impact of ESG regulations on data centre development

• How to address environmental and social challenges in data centres

• The potential of waste heat reuse and optimisation of water consumption

 

Let’s shape data centres that power a more sustainable digital future.

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