Sustainability-in-Tech: Why Space Is Being Tested as a Home for Data Centres

As the environmental and energy costs of Earth-based data centres rise sharply, companies are beginning to test whether space could offer a more sustainable and resilient place to store critical data.

Rising Pressure On Earth-Based Data Centres

The global data centre industry has faced increasing pressure in recent years as demand has accelerated, driven by the expansion of cloud computing, streaming services and artificial intelligence. Management consultancy McKinsey estimates that global data centre demand will grow by between 19 percent and 22 percent each year through to 2030, a pace that is already placing strain on electricity grids, water resources and planning systems in many countries.

Data centres are so important now because they underpin a wide range of essential digital services, from online banking and government platforms to AI model training. As facilities have grown larger and more concentrated, their physical and environmental impact has become more visible. New developments are often located close to urban areas with strong network connectivity and access to power, increasing pressure on local infrastructure and communities.

Energy, Water And Local Resistance

Traditional data centres place some serious sustained demands on electricity networks because servers and cooling systems must operate continuously to prevent overheating. This means that many facilities also rely heavily on water-based cooling, which has become increasingly problematic in regions experiencing drought or long-term water stress.

As a result, new data centre developments in parts of Europe and North America have faced growing opposition or delays, with local authorities and communities raising concerns over water consumption, grid capacity and land use. These pressures are now colliding with national climate targets, as governments attempt to reduce emissions at the same time as demand for digital infrastructure continues to grow faster than efficiency improvements.

Why Some Firms Are Looking Beyond Earth

Against this backdrop, a small but growing group of companies operating at the intersection of space and digital infrastructure are exploring alternatives beyond Earth. The concept is not to replace terrestrial data centres, but to relocate certain types of data storage and processing to space, where resilience and long-term security are prioritised over ultra low latency.

Advances in launch technology, miniaturised electronics and solid state storage have made off planet infrastructure more technically feasible. Lower launch costs and more reliable space systems have enabled companies to begin testing whether space can support limited but valuable digital workloads.

Early Real World Experiments In Space

One of the most advanced efforts is being led by Lonestar Data Holdings, a Florida based company that has already tested a functioning data centre payload in cislunar space and is preparing for further missions around the Moon.

For example, back in February 2025, Lonestar launched its Freedom data centre payload aboard the Athena lunar lander operated by Intuitive Machines, with launch services provided by SpaceX. The payload travelled more than 300,000 kilometres and completed a series of commercial and technical tests designed to demonstrate that secure data storage and limited edge processing can operate reliably beyond Earth.

In a March 2025 press release, Lonestar confirmed that its payload successfully performed file uploads and downloads, encryption and decryption, authentication, and in space data manipulation for government and enterprise customers. The company also reported that power, temperature, CPU memory and telemetry readings remained stable throughout the mission, indicating that the system could operate within expected limits in the space environment.

Testing Sustainability Claims In Practice

Proponents of space based data centres argue that space offers physical characteristics that could reduce environmental impact compared with Earth-based facilities. For example, putting a data centre in space means that solar energy is constant and unobstructed, avoiding the intermittency associated with renewable generation on Earth. Also, heat can be dissipated through radiative cooling into the vacuum of space, thereby reducing the need for water intensive cooling systems.

Lonestar has highlighted these properties as central to its long-term plans. The company says it intends to operate around the Earth Moon L1 Lagrange point, a region of gravitational stability approximately 300,000 kilometres from Earth that allows continuous solar exposure and a relatively stable thermal environment.

In its public materials, Lonestar states that space provides “twenty four hour access to clean free solar energy and natural radiative cooling”, while also noting that physical distance can enhance resilience and security for specific categories of data.

Data Sovereignty Beyond Earth

Data sovereignty has emerged as another key factor driving interest in off planet storage. For example, governments and regulated sectors often require sensitive data to remain under defined legal jurisdictions, a requirement that can be complex in globally distributed cloud environments.

Lonestar argues that existing space law provides a framework for meeting these obligations. Under international treaties, space objects fall under the jurisdiction of the state that licenses or launches them, effectively extending national legal authority beyond Earth.

In its March 2025 announcement, the company said that “leveraging Earth’s largest satellite, the Moon, and the space around it to ensure secure data storage with data sovereignty, security, resiliency and redundancy will become increasingly vital”.

Chris Stott, Lonestar’s executive chair, described the successful in space tests as a foundational moment for the sector, stating, “This is our Kitty Hawk moment. This is where the future begins for this new resilient layer of critical global infrastructure serving us all down here on Earth.”

Independent Studies And Wider Industry Interest

Lonestar’s work actually reflects broader interest across the space and data infrastructure sectors. For example, a European Commission funded feasibility study known as Ascend, led by Thales Alenia Space, concluded in 2024 that orbiting data centres could offer environmental advantages over ground-based facilities under specific conditions.

The study suggested that a constellation delivering around 10 megawatts of computing power could be comparable to a medium sized terrestrial data centre, while avoiding land use and local water consumption. It also noted that the environmental case depends heavily on reducing emissions from launch systems across their full lifecycle.

Technical And Environmental Constraints

Despite growing interest, it must be said that some significant technical and environmental challenges remain. For example, launching hardware into space is still expensive and carbon intensive, even with reusable rockets. Also, once deployed, hardware is difficult or impossible to repair, and radiation exposure poses long-term reliability risks.

Cooling systems must be designed specifically for microgravity, limiting flexibility and upgrade options. Expanding space based data centres beyond niche, high value use cases would, therefore, require large numbers of launches and extensive orbital infrastructure, raising further questions around sustainability and space debris.

An Additional Layer Of Infrastructure

In reality, most proponents position space based data centres as a complementary layer rather than a replacement for terrestrial facilities. The strongest use cases involve disaster recovery, secure backups and long-term preservation of mission critical data, rather than latency sensitive workloads such as real time AI processing.

Lonestar has confirmed customers including the State of Florida and the Isle of Man government, both of which have highlighted resilience and independence from Earth-based risks as key factors. The company has also stated that capacity on its upcoming missions is already fully sold.

What has changed most significantly is that the concept has moved beyond theory. With functioning data storage already demonstrated in cislunar space, attention is now focused on scale, cost, environmental trade offs and how space based infrastructure may fit into wider sustainability strategies for a rapidly expanding digital economy.

What Does This Mean For Your Organisation?

It seems that space based data centres are now moving from conceptual discussion into early operational reality, but they remain a targeted response to specific pressures rather than a universal solution. The sustainability case rests on some clear trade offs. For example, space offers constant solar power, reduced water use and physical separation from climate and geopolitical risks, while also introducing new environmental costs through launches, manufacturing and long-term orbital operations. Whether the balance proves positive at scale will depend on continued reductions in launch emissions, careful limitation of use cases and a realistic assessment of where off planet infrastructure genuinely adds value.

For UK businesses, space based data storage is unlikely to replace domestic or regional data centres, but it may become relevant for organisations with strict resilience, disaster recovery or sovereignty requirements, particularly in regulated sectors such as finance, government and critical national infrastructure. For these users, space offers a potential additional layer of protection rather than a new primary platform, complementing existing cloud and on premises systems rather than displacing them.

For policymakers, regulators and infrastructure planners, the emergence of space based data centres highlights the growing tension between digital growth and environmental limits on Earth. It underlines the need to treat data infrastructure as critical national capacity, subject to the same long-term planning as energy, transport and water. Space is not a shortcut around sustainability challenges, but its growing role reflects how seriously those challenges are now being taken across the global digital economy.

Sustainability-in-Tech : Data Centres May Shrink as On Device AI Challenges the Cloud Buildout

Perplexity CEO Aravind Srinivas has warned that if capable AI can run locally on personal devices, the economic and environmental case for endlessly expanding large data centres could start to weaken.

Data Packed Locally On A Chip Instead

For most users today, artificial intelligence follows a simple pattern. A request is sent from a phone, laptop, or app to a remote data centre, where a large model processes it before returning a response. This centralised approach has shaped how the AI industry has grown and where investment has flowed.

Srinivas has questioned whether that model will remain dominant over the long term. Speaking on a recent podcast, he argued that the “biggest threat to a data centre” would come if intelligence could be “packed locally on a chip that’s running on the device”, removing the need for much of the inference work to happen in central facilities, i.e., the everyday use of an AI model, such as generating answers, summarising documents, or analysing data after the model has already been trained.

Training, by contrast, is the highly resource intensive phase where models learn from massive datasets, usually using clusters of specialised processors inside data centres.

Srinivas’s argument is not that data centres suddenly disappear. Instead, he suggests that if more inference and personalisation move onto devices, the demand for centralised infrastructure may grow more slowly than expected, raising uncomfortable questions about the scale of current investment plans.

Why This Has Become a Sustainability Issue

The warning comes as the environmental impact of AI infrastructure is drawing increasing attention. Data centres already consume large amounts of electricity, and AI has accelerated that growth. For example, the International Energy Agency estimates that global electricity consumption from data centres could rise from around 460 terawatt hours in 2022 to between 945 and 1,050 terawatt hours by 2030, effectively doubling within a decade as AI workloads expand. The agency also notes that electricity demand from data centres is growing more than four times faster than overall global electricity demand, placing increasing pressure on power grids and decarbonisation efforts. At that scale, data centres would rank among the world’s largest single categories of electricity demand.

However, the pace of growth matters as much as the absolute numbers. For example, the IEA has also highlighted that electricity demand from data centres is increasing several times faster than overall electricity demand, thereby creating pressure on grids, generation capacity, and decarbonisation plans.

Water use has become another point of concern. For example, many large facilities rely on water-based cooling systems, either directly or indirectly through power generation. In water-stressed regions, new data centre projects have faced public opposition and regulatory scrutiny, particularly where local communities see competition for limited resources.

It’s against this backdrop that the idea of moving some AI workloads away from centralised facilities appears to offer a possible route to reducing environmental pressure, or at least slowing its growth.

What On Device AI Really Involves

It’s worth noting that on device AI doesn’t mean abandoning the cloud entirely, as it actually describes running certain AI tasks directly on local hardware, using specialised chips designed for machine learning workloads.

In fact, this is already happening in limited ways. For example, modern smartphones and laptops increasingly include neural processing units, which are optimised for tasks such as image recognition, speech processing, and text summarisation. These chips allow some AI features to run quickly without sending data to remote servers.

Apple, for example, has positioned on device processing as a core part of its approach to AI, emphasising privacy and speed. Microsoft has taken a similar route with its latest generation of Windows laptops, promoting devices capable of handling AI workloads locally through dedicated hardware.

In practice, most current systems are hybrid, e.g., smaller, frequent tasks may run on the device, while larger or more complex requests are still handled in the cloud. The question is whether that balance will shift significantly over time.

Why Local AI May Cut Impact (Or Not)

At first glance, the sustainability case for local AI seems pretty straightforward, e.g., if fewer requests are sent to data centres, fewer servers are needed, and energy and water use could grow more slowly.

However, the reality is more complex, and making AI cheaper and more responsive can increase usage. If people rely on AI more often throughout the day, total energy demand may still rise, even if each individual task becomes more efficient.

There is also the issue of where energy is consumed. For example, a highly optimised data centre running on low-carbon electricity may, in some cases, be more efficient than millions of individual devices drawing power from more carbon-intensive grids. The environmental outcome depends heavily on local energy mixes and usage patterns.

This is why claims that data centres will become obsolete are so controversial, as a shift in where computation actually happens doesn’t automatically translate into lower overall environmental impact.

Smaller Data Centres and Waste Heat

The debate around on device AI is also reshaping how data centre design is being approached. For example, rather than relying solely on vast, remote facilities, some operators are exploring smaller, more distributed models that place computing closer to where it is needed. Known as ‘edge computing’, this approach reduces latency and can improve responsiveness, while also opening up new sustainability opportunities.

In the UK, several projects have demonstrated this approach in practice. For example, at Exmouth Leisure Centre in Devon, a small-scale data processing unit operated by Deep Green uses immersion cooling to capture heat from servers and reuse it to warm swimming pools and hot water systems. The same model has since been applied in other public sector buildings, where computing infrastructure is integrated into heating systems to improve overall energy efficiency.

Facilities with a constant demand for heat are particularly well suited to this model, because the heat generated by local computing can be reused on site rather than being discarded, something a remote hyperscale data centre cannot offer.

These approaches do not remove the energy demands of computing, but they do improve overall efficiency by linking digital infrastructure more closely to real-world energy needs.

Why Large Data Centres Are Still Being Built

Despite growing interest in local and edge computing, investment in large data centres continues at pace and it seems there are practical reasons for this. For example, training the most advanced AI models still requires concentrated computing power, specialist cooling, and robust power infrastructure. Many business services also depend on centralised platforms for reliability, compliance, and security, particularly in regulated industries.

It’s worth noting here that data centres also support far more than AI. For example, streaming, online banking, enterprise software, cloud storage, and collaboration tools all rely on centralised infrastructure and, even if some AI workloads move elsewhere, these services still need to run.

That said, technology companies are aware of the sustainability pressure and are responding with efficiency improvements, renewable energy procurement, and public reporting commitments. These steps suggest preparation for long-term operation rather than an expectation of rapid decline.

The Technical Barriers to a Device First Future

Despite Srinivas’s predictions, he has acknowledged that on device AI faces real technical obstacles. Advanced models place heavy demands on memory, bandwidth, and thermal management. Running them continuously on a phone or laptop can drain batteries quickly and generate heat that hardware struggles to dissipate. Cost is another factor, since more powerful chips raise device prices and limit accessibility.

Progress is being made through smaller, more efficient models designed for specific tasks rather than general purpose use. Researchers and companies are increasingly focusing on models that are “good enough” for everyday work, such as summarising documents or managing routine workflows, without requiring enormous computing resources.

For example, an email assistant that sorts and drafts messages does not need the same scale of model as a system designed to generate long-form creative content across many domains.

What This Means for the Future of Infrastructure

All things considered, it seems the most likely outcome is not a collapse of data centres, but a gradual redistribution of workloads.

Large facilities remain essential for training advanced models and supporting global digital services. At the same time, more inference may shift onto devices and into smaller, local facilities, reducing some traffic and changing where energy is consumed.

From a sustainability perspective, this raises new priorities. Efficient chip design, longer device lifetimes, repairability, and transparent reporting of energy and water use become more important as computing spreads out across billions of devices.

It also sharpens the risk of overbuilding. If assumptions about ever-rising centralised demand prove wrong, the environmental cost is not only operational energy use but also the embodied carbon in construction, equipment manufacturing, and supporting infrastructure.

Srinivas’s warning does not predict the end of data centres. It highlights a growing uncertainty at the heart of the AI boom, where technological change, environmental limits, and investment decisions are becoming increasingly difficult to separate.

What Does This Mean For Your Organisation?

The rapid growth of on device AI is beginning to complicate long-standing assumptions about how and where AI infrastructure should be built. While large facilities remain essential for training advanced models and supporting global digital services, growing interest in on device AI and distributed computing is introducing new constraints on how much centralised capacity is truly needed.

For UK businesses, this has direct implications for how AI is deployed, governed, and paid for. As more AI capabilities move closer to the user, organisations may gain greater control over data handling, latency, and operating costs, while still relying on the cloud for scale, resilience, and compliance. This has direct implications for IT strategy, sustainability reporting, and long-term procurement decisions, particularly as energy prices, carbon targets, and regulatory scrutiny continue to tighten.

For policymakers, infrastructure planners, and local communities, the risk is not simply overbuilding data centres, but committing to energy-intensive infrastructure at a time when the underlying technology is still evolving. Srinivas’s warning does not predict the end of data centres, but it does highlight growing uncertainty around how AI infrastructure should be planned, regulated, and sustained as environmental limits and technological change increasingly intersect.

Sustainability-In-Tech : Old Smartphones Find A Second Life As Tiny Data Centres

Researchers have developed a low cost way to turn discarded smartphones into tiny data centres that can support real world environmental and civic projects.

Why Old Smartphones Still Matter

More than 1.2 billion smartphones are produced every year, yet most are replaced within two or three years even when they remain fully functional. The environmental cost of this rapid cycle is significant. Smartphone manufacturing is energy intensive, relies on mined materials such as cobalt and lithium, and contributes to the 62 billion kilograms of global e-waste recorded in 2022. Only a small proportion is formally recycled, so millions of phones end up forgotten in drawers or sent to landfill.

Consequently, many sustainability groups have long been arguing that extending device lifespans is one of the most effective ways to cut electronic waste, since the majority of a smartphone’s carbon footprint is created during manufacturing. Until recently, extending that lifespan usually meant refurbishment or resale. The latest research from the University of Tartu (in Estonia) shows that a third option is now possible, one that reuses phones in a completely different role.

The Idea Behind Tiny Data Centres

The new approach comes from a team of European researchers whose study in IEEE Pervasive Computing explains how old smartphones can be reprogrammed and linked together as miniature data centres. The aim is not to compete with traditional cloud computing, but to show that many small and local tasks do not require new hardware at all.

The team, led by researchers including Huber Flores, Ulrich Norbisrath and Zhigang Yin, began by taking phones that were already considered e-waste. The devices were stripped of batteries and connected to external power supplies to avoid chemical leakage risks that can arise when batteries degrade. This small step is important for long term deployments, since lithium-ion batteries can swell or leak when left unused for years.

Four phones were then connected together, placed inside a 3D printed holder, and configured so that the system acted as a single working prototype. According to the researchers, this entire process cost around €8 per device, making it far cheaper than installing new embedded computing hardware for similar tasks. As Flores explains, “Innovation often begins not with something new, but with a new way of thinking about the old, re imagining its role in shaping the future.”

Putting Repurposed Phones To Work

The first major test took place underwater. The tiny data centre was used to support marine life monitoring by processing video and sensor data directly below the surface. This type of survey work usually depends on scuba divers recording footage and bringing it back for analysis. The prototype allowed that analysis to happen automatically on site, reducing labour, shortening processing time, and avoiding the need to send large data files across networks.

Edge Computing

This approach is known as edge computing, where data is processed close to the source rather than in distant data centres. Repurposed smartphones are well suited to this because they are built to handle local storage, low power processing and real time tasks. It means they can support use cases where traditional servers would be excessive or impractical.

Also On Land

It should be noted that there are some clear examples on land too. For example, the Tartu team highlights how a unit placed at a bus stop could gather anonymised information about passenger numbers, waiting times and traffic levels. Transport agencies could use that real time data to improve timetables or plan new routes. It is the same principle behind many smart city projects, but achieved with hardware that already exists.

The researchers also point towards environmental monitoring, urban air quality measurements, small scale agricultural sensing, and certain machine learning applications where data volumes remain modest. These tasks do not demand the full power of modern workstations, yet they still require reliable processing in locations where installing new equipment is expensive or unnecessary.

A Sustainability Case With Wider Implications

The argument for tiny data centres is not only technical, but is also rooted in sustainability thinking.

For example, smartphone production is responsible for significant emissions and resource extraction. Therefore, extending the life of older devices makes use of computing power that would otherwise sit idle or be discarded. In a world where global demand for computing continues to rise, repurposing offers a practical way to satisfy some of that demand without adding new manufacturing emissions.

Ulrich Norbisrath, one of the researchers involved, summarises this perspective clearly: “Sustainability is not just about preserving the future, it is about reimagining the present, where yesterday’s devices become tomorrow’s opportunities.”

The project reflects a broader trend within the digital sustainability community, where attention is turning towards resource efficiency and circularity. From longer software support periods to designs that support repair and reuse, the goal is to reduce reliance on a constant flow of new devices. Repurposing smartphones as micro data centres adds another practical option to that toolkit.

Practical Challenges Still To Address

Although this sounds like real progress, the researchers are realistic about the obstacles. For example, one major hurdle is the wide variety of smartphone models. Chipsets, memory sizes and firmware differ significantly across brands and generations, making it difficult to build a universal method for bypassing hardware restrictions. The study calls for the creation of tools that are hardware agnostic so that more people can repurpose devices without advanced technical knowledge.

Energy supply is another issue. Although the devices draw little power individually, long term deployments in remote locations require stable energy sources and protection from moisture, heat and physical damage. This makes the design of the 3D printed casing and supporting hardware an important part of the overall system.

Security also needs careful thought. For example, smartphones were never designed to operate as unattended networked devices, so any repurposed system must have secure software, strong update controls and physical safeguards. Without this, there is a risk that poorly maintained clusters could introduce vulnerabilities.

The team stresses that their prototype is really a proof of concept, i.e., it shows what is feasible today and identifies where future development is most needed, including standardised tools, easier configuration processes and larger scale trials.

What Does This Mean For Your Organisation?

UK organisations are under growing pressure to reduce waste, cut emissions and make better use of the resources they already hold. Repurposed smartphones could present a practical way to help support those goals, especially for businesses that cycle through large numbers of devices each year. Treating retired phones as reusable computing assets rather than waste creates immediate value and avoids the environmental cost of manufacturing yet another round of hardware. It also offers a route to experiment with local data processing without committing to major capital spending.

For many firms, the most relevant opportunity lies in small scale, on site tasks where data needs to be collected, processed and acted on quickly. Old smartphones can support building management, environmental monitoring, simple analytics and other operational jobs that do not require full server deployments. This keeps data close to the source, avoids unnecessary cloud usage and aligns with wider efforts to improve energy efficiency. The approach also speaks directly to the sustainability strategies now expected by regulators, investors and customers who want evidence that companies are reducing electronic waste in credible ways.

There is a clear benefit for local authorities, utilities and public services too. Tightly constrained budgets mean that projects often stall for lack of affordable hardware. Repurposed phones give these stakeholders a way to test new ideas at low cost, from monitoring passenger numbers to gathering air quality data. This helps build evidence, speed up innovation and guide investment decisions without locking into expensive platforms from day one.

Technology suppliers and service partners may also find value in developing tools that make repurposing easier. Businesses increasingly want flexible, lower carbon digital solutions and the research points towards a future market for hardware agnostic software that can unify mixed phone models into consistent micro data centres. For the UK’s growing sustainability and digital sectors, this represents a fresh area of opportunity.

The wider message for all stakeholders is that existing technology still has untapped potential. Repurposing does not replace secure recycling or responsible disposal, but it does extend the useful life of devices that would otherwise remain unused. For UK businesses looking to reduce waste, cut costs and support their environmental commitments, the University of Tartu’s work shows that old smartphones can play a meaningful role in creating a more resource efficient digital environment.

Sustainability-In-Tech : Powering AI Data Centres Using Hot Rocks

Exowatt, a Sam Altman-backed energy startup, plans to revolutionise AI data centre energy consumption by harnessing the power of concentrated solar energy stored in high-temperature hot rocks to provide round-the-clock, dispatchable electricity.

A Viable Alternative to Traditional Grid-Based Power?

Co-founded by Hannan Happi, who has a background in energy innovation and technology development, Exowatt aims to address the AI industry’s growing demand for sustainable and reliable power. With this in mind, the company’s flagship product, the Exowatt P3 system, is designed to solve the solar energy industry’s most significant challenge, i.e., providing consistent, 24-hour electricity. By capturing solar energy, storing it as heat, and converting it into electricity when required, Exowatt aims to deliver a viable alternative to traditional grid-based power, which is not always reliable or sustainable for energy-hungry industries like AI.

How Exowatt’s P3 System Works

The Exowatt P3 is a modular system that functions differently from conventional solar panels. Instead of converting sunlight directly into electricity, the system uses concentrated solar power (CSP) technology, a method that has been around for decades but has yet to achieve widespread commercial success.

Heats A Brick And Blows Air Over It

As the company says on its website, “Exowatt delivers power on demand by capturing and storing solar energy in the form of high-temperature heat and converting it into dispatchable electricity as needed.”

In order to do this, the system works by using fresnel lenses (a type of light-focusing lens) to concentrate sunlight into a tight beam. This beam heats a special brick inside a box, which serves as a thermal battery. A fan blows air over the brick, carrying the heat to a Stirling engine, a heat engine that converts thermal energy into mechanical energy, which is then used to generate electricity. The P3’s thermal storage capacity allows it to provide dispatchable power, meaning it can supply electricity whenever needed, even when the sun isn’t shining. This addresses the intermittent nature of traditional solar energy, which can only generate power when there is direct sunlight.

Can Store Heat For 5 Days

The P3 units can store heat for up to five days, ensuring continuous operation. Also, the units are modular, meaning they can be scaled depending on the energy requirements of the user. Exowatt has designed the system to be easy to deploy, requiring minimal maintenance and a small physical footprint compared to other renewable energy solutions.

Why It Matters for the AI Industry

The AI sector is growing at an unprecedented rate, with increasing energy demands driven by the need to train complex models and power massive data centres. For example, according to estimates, data centre energy consumption will increase by 150 per cent by 2030, with AI models expected to be one of the largest contributors to this demand. Traditional energy grids, however, are not equipped to handle this surge in consumption, especially as the need for clean and reliable energy grows.

Exowatt’s approach could, therefore, significantly reduce reliance on fossil-fuel-powered backup generators, which many data centres currently use to ensure uptime during power shortages. These backup systems, often powered by gas, are not only expensive but contribute to carbon emissions, directly contradicting the industry’s shift towards more sustainable practices.

The Exowatt P3 promises a cleaner, more sustainable alternative by providing a reliable power source that does not depend on the grid. This is particularly important for companies building data centres in remote areas, where access to stable grid power may be limited or non-existent. By positioning itself as a dispatchable energy solution, Exowatt gives AI companies a way to meet their energy needs while maintaining their commitment to sustainability.

What Makes Exowatt So Different?

Unlike traditional solar power systems, which require battery storage to hold electricity until it is needed, Exowatt’s thermal storage system offers a number of advantages. For example, the P3 system’s reliance on heat storage rather than electric battery storage avoids many of the issues associated with lithium-ion batteries, such as their reliance on rare-earth minerals, the environmental impact of battery disposal, and the rapid cost reductions in solar panel production which have outpaced improvements in battery technology.

Exowatt’s system is designed to work in sunnier regions where traditional solar systems are most effective. Happi notes that Exowatt’s P3 units can be deployed near new data centre developments, often located in sunny areas, thus overcoming grid limitations. The modular nature of the system means that power capacity can be increased simply by adding more P3 units, making it a scalable solution.

Pricing and Availability

Exowatt appears to be aggressively scaling production, having raised a total of $140 million in funding to date, including a recent $50 million extension to its Series A round. The company has set a target price of $0.01 per kWh, which would position its energy cost below current prices for many types of renewable power. To achieve this, Exowatt hopes to manufacture 1 million units per year, which would bring production costs down and make it competitive with other forms of renewable energy.

While the technology is still in its early stages, Exowatt has already secured a backlog of 90 GWh in demand, with customers in the AI data centre and energy developer sectors. As production ramps up, Exowatt plans to roll out the P3 system to large-scale data centre projects in regions that are sun-rich, making it an ideal fit for AI companies seeking reliable, sustainable power solutions.

Other Companies in the Space

It should be noted here that Exowatt is not the only company exploring the potential of thermal storage and concentrated solar power. Several other firms are pursuing similar solutions, though each has its own approach and focus. These include:

– Vast Energy, which is developing modular concentrated solar thermal power systems designed to deliver clean, dispatchable energy for utility-scale and industrial applications. Their CSP v3.0 technology captures the sun’s energy and stores it as heat, allowing for efficient and reliable power delivery when needed, similar to Exowatt’s P3 system.

– Heliogen, which focuses on solar thermal technologies and aims to replace fossil fuels in industrial applications. Their systems use concentrated solar power to generate high-temperature heat, which can be used to produce electricity or replace gas in manufacturing processes.

– SolarReserve and eSolar, which are earlier players in the CSP field, though their commercial activities have slowed in recent years. These companies have contributed to the development of solar thermal technology, but they are less active or have shifted their focus due to challenges with scalability and cost.

While Exowatt’s approach is similar to these companies, its focus on modular, scalable systems tailored for AI and high-density computing environments could set it apart, particularly if it can prove its technology is both cost-effective and adaptable to different locations and energy demands.

Broader Implications and Challenges

Exowatt’s technology looks as though it has the potential to disrupt the renewable energy and data centre industries, offering a way to tackle AI’s increasing energy demands sustainably. For example, for data centre operators, the system presents an opportunity to reduce their carbon footprint while ensuring that power is always available, even during peak demand periods or at night.

However, Exowatt faces some stiff competition. Photovoltaic solar panels and lithium-ion batteries have come down in price rapidly in recent years, making them more attractive options for many companies. Also, concentrated solar power projects have faced challenges in the past due to high upfront costs and the need for specific geographical conditions. Exowatt will need to prove that its system can scale effectively and remain cost-competitive as production increases.

One of the key challenges for Exowatt’s system is land use. For example, while the P3’s efficiency is comparable to traditional photovoltaic solar panels, the system requires a significant amount of land to scale up production, particularly in regions with less sunlight. This may limit the system’s appeal in areas where land is scarce or where sunlight is insufficient. The large land footprint required to deploy large numbers of P3 units could also pose logistical challenges, especially in urban areas where space is at a premium. These factors are likely to be crucial for Exowatt to overcome if it aims to scale effectively and meet the growing demand for sustainable AI infrastructure power.

Looking Ahead

As Exowatt continues to scale its operations, it could well become a leading player in the transition to sustainable energy for AI data centres. For example, with major backers like Andreessen Horowitz and Sam Altman, the company has the resources to expand rapidly, and its innovative approach to solar energy storage could set a new benchmark for the energy demands of AI.

However, its success looks likely to depend on whether it can overcome the inherent challenges of large-scale deployment and prove that its technology can compete with existing energy solutions. If Exowatt can deliver on its promises, it could reshape the way data centres, and indeed, entire industries, think about their energy needs in the age of artificial intelligence.

What Does This Mean For Your Organisation?

Exowatt’s P3 system seems to offer a compelling vision for how AI data centres can meet their energy needs sustainably, addressing the increasing demand for 24/7 power in an industry heavily reliant on high-performance computing. The system’s ability to store solar energy as heat and convert it into dispatchable electricity sets it apart from traditional solar and battery solutions, offering a reliable and cleaner alternative to fossil-fuel-powered backup systems.

However, while the P3 system presents a promising solution for reducing data centre emissions, its success could hinge on overcoming several challenges. Scaling production efficiently and managing the land footprint required for deployment are two critical obstacles. Although Exowatt has the potential to deliver energy at an exceptionally low cost, competing technologies, such as photovoltaic solar and lithium-ion batteries, have quickly become more cost-competitive. Exowatt will need to demonstrate that its system can meet these challenges, particularly in less sunny regions where land availability and sunlight are limited.

Looking to the future, Exowatt’s modular, scalable approach could make it an attractive option for AI companies looking to ensure reliable power while maintaining sustainability goals. For UK businesses, particularly those involved in AI, data centres, and energy-intensive industries, the success of Exowatt could signal a new era of energy independence and sustainability. If Exowatt can continue to scale and prove its technology’s viability, it could reshape the energy landscape for data centres globally, offering UK companies a reliable and affordable path to meet the growing demands of the digital age.

Despite the hurdles, Exowatt’s ambition and innovative approach may be precisely what’s needed to meet the unique energy challenges of the AI sector, paving the way for a more sustainable and resilient energy future.

Tech News : Meta’s Tents For Data Centres Amid AI Surge

Meta is reportedly using temporary tent structures to house its growing AI infrastructure, as demand for compute power outpaces the construction of traditional data centres.

A Race for AI Compute Is Reshaping Infrastructure Plans

As the AI arms race intensifies, tech giants are confronting a new logistical challenge, i.e. where to house the vast amounts of high-performance hardware needed to train and run next-generation AI models. For Meta, the parent company of Facebook, Instagram and WhatsApp, the answer (at least in the short term) appears to be industrial-strength tents.

Reports first surfaced this month that Meta has begun deploying custom-built tented structures alongside its existing facilities to accelerate the rollout of AI computing clusters. These so-called “data tents” are not a cost-saving gimmick, but rather appear to be a calculated move to rapidly expand capacity amid what CEO Mark Zuckerberg has described as a major shift in the company’s AI strategy.

From Social Platform to AI Powerhouse

Meta’s pivot towards AI infrastructure has been fast and deliberate. For example, in early 2024, the company announced plans to create one of the world’s largest AI supercomputers, with a particular focus on supporting its open-source LLaMA family of language models. By the end of the year, it had already begun referring to it as “the most significant capital investment” in its history.

To support this, Meta is deploying tens of thousands of Nvidia’s H100 and Blackwell GPUs (high-powered computer chips designed to run and train advanced AI systems very quickly). However, it seems that building the physical infrastructure to support them has proven slower than the procurement of hardware. Traditional data centres, for example, can take 18–24 months to build and commission. Meta’s solution appears to be to use temporary hardened enclosures, which are effectively industrial tents, that can be erected and made operational in a fraction of the time.

Where It’s Happening and What It Looks Like

The first confirmed location for Meta’s tented deployments is in New Albany, Ohio, where it’s developing a major cluster codenamed Prometheus. According to recent reports from several news sources, these structures are being used to house racks of GPU servers and associated networking equipment. Each unit is reportedly modular, with advanced cooling, fire suppression, and security systems.

While Meta has not actually released any detailed specifications, the company has described the effort as a “temporary acceleration” to bridge the gap until more permanent facilities come online. Another major AI campus (codenamed Hyperion) is in development in Louisiana, with expectations that similar rapid-deployment methods may be used there too.

Why Tents and Why Now?

The use of tents may seem surprising, but Meta’s motivation is clear, i.e. it wants (needs) to train and serve large AI models at scale, and it needs the infrastructure right now, not in two years. In Zuckerberg’s own words, the company is aiming to “build enough capacity to support the next generation of AI products,” while staying competitive with the likes of OpenAI, Google, Amazon and Microsoft.

It’s also about flexibility. For example, unlike traditional data centres, which require permanent planning permissions and heavy civil works, tented enclosures can be constructed and reconfigured quickly. They offer a way to get high-density computing online in months rather than years, albeit with some compromises.

Not Just Meta

While Meta’s move is grabbing headlines, it’s not the first major tech firm to explore unconventional data centre formats. For example, during the COVID-19 pandemic, several cloud providers used temporary modular data centres, including containers and tented enclosures, to scale operations when demand surged. Microsoft famously experimented with underwater data centres as a way to reduce cooling costs and improve reliability.

Even more recently, Elon Musk’s xAI venture reportedly deployed rapid-build server farms using prefabricated containers to speed up GPU deployment in its Texas-based facilities. Also, Amazon has continued to invest in “Edge” data centres that prioritise speed and agility over permanence.

However, what sets Meta’s approach apart is the scale. For example, the company has already committed over $40 billion to AI infrastructure, and the tented deployments are part of a broader strategy to “bootstrap” its capabilities while new-generation AI-specific campuses are built from scratch.

Concerns About Resilience, Efficiency and Impact

It should be noted, however, that the move hasn’t exactly been universally welcomed. Experts have raised concerns about the reliability, cooling efficiency and ecological footprint of tent-based data operations. While Meta claims that its enclosures meet enterprise standards for uptime and safety, temporary structures are inherently more vulnerable to environmental disruption, temperature fluctuations and wear.

There are also questions about energy use. Large AI models require huge volumes of electricity to run, especially when deployed at scale. Tented structures may lack the sophisticated thermal management and energy reuse systems found in traditional hyperscale centres, raising the risk of inefficiencies and higher carbon emissions.

According to the Uptime Institute, data centres already account for up to 3 per cent of global electricity demand. If stopgap facilities become the norm during periods of infrastructure pressure, that figure could rise sharply without additional oversight or environmental controls.

Impact and Implications

For Meta, at the moment, the gamble appears to be worth it. The company is currently rolling out LLaMA 3 and investing heavily in tools like Meta AI, which it plans to integrate across its social and business platforms. The faster it can get its high-performance AI hardware up and running, the sooner it can offer AI-driven services, including advertising tools, analytics, and content generation, to enterprise clients.

For business users, the main benefit is likely to be early access to more powerful AI tools. Meta has already integrated its assistant into WhatsApp, Messenger and Instagram, with broader rollouts planned for Workplace and business messaging products. However, reliability and latency may remain issues if some of the compute is housed in temporary facilities.

The move also raises the issue of competitive pressure. For example, if Meta can deliver AI capabilities ahead of rivals by deploying fast, it may force other firms to adopt similar build strategies, even if those come with higher operational risks. For hyperscalers, the challenge will be balancing speed with sustainability and service quality.

What Comes Next?

Not surprisingly, Meta has indicated that tents are a transitional measure, not a long-term strategy. The company’s permanent data centre designs are being reworked to accommodate liquid cooling, direct GPU interconnects, and AI-native workloads. These upgraded facilities will take years to complete, but by using tents in the meantime, Meta is buying itself crucial time.

The coming months are likely to show whether the experiment works, and whether others follow suit. For now, Meta’s tents are essentially a symbol of just how fast AI is reshaping not just software, but the physical infrastructure of the internet itself.

What Does This Mean For Your Business?

The use of tents as a fast-track solution reflects the scale and urgency of Meta’s AI ambitions, but it also highlights the growing tension between speed of deployment and long-term sustainability. For all its innovation, Meta’s approach poses uncomfortable questions about resilience, energy consumption and operational risk, especially when infrastructure is housed in non-standard environments. While this kind of flexibility may offer a short-term edge, it could expose businesses and users to service disruption if systems housed in temporary structures fail under pressure or face unforeseen vulnerabilities.

That said, the sheer demand for AI infrastructure means other tech giants may not be far behind. If Meta’s experiment proves successful, we could see other players adopt similarly unconventional strategies, especially where time-to-market is critical. For UK businesses relying on AI platforms like Meta’s for content generation, analytics, or marketing tools, this could bring benefits in terms of earlier access to new capabilities. However, it also reinforces the importance of understanding where and how data services are delivered, particularly for sectors concerned with uptime, data security, and regulatory compliance.

Regulators, investors, and environmental groups will likely be watching closely. If stopgap deployments become widespread, new standards may be needed to ensure these facilities meet minimum efficiency, safety and emissions criteria. The shift to temporary infrastructure may also have knock-on effects for supply chains, local planning authorities and the data centre construction industry, as expectations around permanence and scale continue to shift.

Ultimately, Meta’s move signals a wider industry pivot, not just to AI, but to a more agile and fragmented approach to infrastructure. Whether this becomes a blueprint or a cautionary tale will depend on how well these fast-build solutions hold up under real-world conditions, and whether they can deliver the stability and sustainability that large-scale AI services increasingly demand.

Sustainability-In-Tech : Is Geothermal Energy The Future For Data Centres?

A new report from the Rhodium Group claims that advanced geothermal energy could power nearly all new data centres by 2030.

A Stable, Renewable Solution

With the exponential rise in artificial intelligence (AI) and cloud computing driving unprecedented demand for electricity, the energy consumption of data centres is a growing concern. However, the report suggests that tapping into the Earth’s heat could provide a stable, renewable solution to this looming energy crisis.

The Data Centre Energy Problem

Data centres are essentially the backbone of the digital economy, hosting everything from cloud storage to AI model training. However, their hunger for power (and water) is becoming a pressing issue. For example, according to the Rhodium Group, electricity demand from data centres in the US has surged from 2 per cent of total consumption in 2020 to around 4.5 per cent in 2024. Projections indicate this could rise to as much as 12 per cent by 2028.

Much of this surge comes from the rapid expansion of AI, with models such as ChatGPT, Google Gemini, and Microsoft Copilot requiring massive computational power. The grid is struggling to keep pace, with utilities and regulators facing growing challenges in ensuring reliable, low-carbon electricity supply.

What Is Geothermal Energy?

Geothermal energy harnesses heat stored beneath the Earth’s surface, converting it into electricity or direct heating. Traditionally, geothermal power plants were limited to areas where hot water or steam naturally rises close to the surface, such as Iceland or parts of the western US.

However, advancements in enhanced geothermal systems (EGS), which use deep drilling and hydraulic fracturing techniques to unlock heat from otherwise inaccessible rock formations, are now changing the game. For example, according to the US Department of Energy, EGS could unlock up to 90 gigawatts (GW) of geothermal capacity in the US alone, providing a vast, untapped source of clean energy.

Why Geothermal Could Meet Data Centre Demand

The Rhodium Group’s report estimates that under current trends, geothermal could provide up to 64 per cent of new data centre electricity demand by 2030. If data centre developers strategically site their facilities in areas with the best geothermal resources, this figure could rise to 100 per cent!

In practical terms, this means geothermal could quadruple its current installed capacity in the US, from 4GW today to approximately 16GW by the end of the decade. Crucially, the cost of geothermal energy is expected to be competitive with existing power sources, ranging from $50 to $75 per megawatt-hour (MWh) (on par with current grid electricity prices for data centres).

Real-World Examples of Geothermal in Action

A number of innovative startups are already proving the feasibility of geothermal-powered data centres. These include:

– Fervo Energy, founded by former oil and gas engineers, has been pioneering horizontal drilling techniques to boost geothermal output. The company secured over $200 million in investment in 2024 and has significantly reduced drilling costs.

– Bedrock Energy is focusing on space-constrained urban environments. Their deep-drilling approach enables office buildings and data centres to tap into geothermal heat with a small footprint.

– Quaise Energy has developed a breakthrough technology that uses high-powered microwaves to vaporise rock, allowing them to drill as deep as 12.4 miles (20km). At these depths, temperatures exceed 1,000°F, providing an almost limitless source of heat.

– Sage Geosystems is taking a different approach, using geothermal wells to store energy. Water is injected under pressure and later released to generate electricity, similar to an underground hydroelectric dam.

The Benefits of Geothermal for Data Centres

Geothermal energy offers a host of advantages for data centre operators, most notably:

– 24/7 reliability. Unlike wind or solar, geothermal provides continuous, baseload power with 90 per cent+ capacity factors.

– A low carbon footprint. Geothermal plants emit little to no greenhouse gases, aligning with tech companies’ aggressive net-zero targets.

– Grid independence. By using behind-the-metre geothermal installations, data centres can bypass lengthy grid connection delays, reducing wait times for power.

– Cost stability. Unlike natural gas, which is subject to price volatility, geothermal energy provides long-term price certainty.

The Challenges of Scaling Geothermal

However, while the potential is pretty clear, there are some significant hurdles to overcome before geothermal can power the next wave of data centres. These include:

– High upfront costs. Deep drilling and well stimulation require significant capital investment. However, costs are falling as technology advances.

– Permitting delays. In the US, for example, securing permits for geothermal projects can take up to 10 years! Streamlining regulatory approvals is crucial to accelerating deployment.

– Geographic constraints. While EGS expands geothermal’s reach, the best sites are still concentrated in the western US, meaning some data centres may have to relocate or use hybrid energy strategies.

– Infrastructure readiness. Drilling rigs, turbines, and skilled labour all need to scale rapidly to meet growing demand. Leveraging expertise from the oil and gas sector could help bridge this gap.

What Does This Mean For Your Organisation?

Geothermal energy could be a real and practical way to address the growing electricity demands of data centres while aligning with sustainability goals. The technology is proven, its reliability is unmatched among renewables, and its potential is vast. However, realising this potential requires significant investment, regulatory reform, and strategic siting of new facilities.

For data centre operators, integrating geothermal could reduce dependence on fossil fuels and offer long-term cost stability. For policymakers, streamlining permitting processes and incentivising geothermal development will be key to unlocking its full potential. Meanwhile, investors and energy companies have a chance to shape a growing market by developing innovative drilling and power generation techniques.

For UK businesses, the need for cleaner, more stable energy sources is just as pressing in this country, where data centre energy demand is rising rapidly. While the UK lacks the geothermal resources of the US, investment in energy innovation, including geothermal heating and advanced drilling techniques, could provide valuable lessons and opportunities. Also, British companies specialising in energy technology, infrastructure, and financing may find growing international demand for their expertise.

The question, therefore, is no longer whether geothermal can support the data centre boom, but how quickly the industry can scale to meet demand. With the right mix of investment, policy support, and technological innovation, the heat beneath our feet could soon be powering the digital world in ways previously unimaginable.

Sustainability-in-Tech : Microsoft Data Centres Made Of … Wood!

Microsoft has announced that it is building its first data-centres made with superstrong ultra-lightweight wood in a bid to slash the use of steel and concrete, which are among the most significant sources of carbon emissions.

The Need for Sustainable Data Centres 

The global rise in data consumption has intensified the need for data-centres, which power everything from cloud storage to AI. However, data-centres are notoriously resource-intensive, demanding vast amounts of energy to run and cool high-performance servers. Traditionally constructed using steel and concrete, data-centres also contribute significantly to the carbon footprint through the embodied carbon in these materials. For example, according to the World Economic Forum, steel production is responsible for around 7 per cent of global carbon emissions, while cement production accounts for another 8 per cent.

Carbon Neutral by 2030 

Microsoft has pledged to become carbon-negative by 2030, aiming to remove more carbon from the atmosphere than it emits. As part of this commitment, the company has been experimenting with innovative materials to cut down emissions in its construction processes, resulting in the decision to use wood-based construction for two new data-centres in Virginia, USA.

Why CLT? 

The use of wood in these new data-centres, specifically cross-laminated timber (CLT), is expected to reduce the embodied carbon footprint by 35 per cent compared to traditional steel structures and by an impressive 65 per cent compared to standard concrete. This material, which is central to Microsoft’s strategy, has been gaining traction as a sustainable alternative to steel and concrete. As engineered wood, CLT’s made by gluing multiple layers of timber at right angles, creating a product that is both strong and lightweight. One of the significant advantages of CLT is its fire resistance, i.e. when exposed to fire, CLT forms a char layer on its surface that acts as an insulator, slowing down the spread of flames and maintaining the structural integrity longer than steel.

This innovative approach is not without its challenges. While CLT is increasingly used in Europe for green building projects, the technology is still relatively new in the United States, especially for large-scale applications like data-centres.

By adopting this material, Microsoft hopes to encourage broader acceptance in the industry, potentially lowering costs and boosting availability. According to Thomas Hooker, an associate at Thornton Tomasetti, the structural engineering firm working with Microsoft, “Microsoft’s scale means they can act as a market mover, driving these technologies towards more widespread use.” 

Actually, It’s a Wood, Steel, and Concrete Hybrid 

Although Microsoft is keen to highlight the wood (CLT) used in its new data-centres, in reality, Microsoft’s new data-centres employ a hybrid construction model, combining CLT with steel and concrete. While CLT serves as the primary structural material, a thin layer of concrete reinforces floors and ceilings to ensure durability. This combination allows Microsoft to achieve a balance between sustainability and structural resilience, reducing emissions without compromising performance.

Speed and Cost Advantages 

Beyond the environmental benefits, hybrid construction with CLT offers practical advantages in speed and cost. Since CLT panels are prefabricated, they can be assembled more quickly and with less skilled labour than traditional steel or concrete. This efficiency reduces both construction time and costs, further adding to the sustainability benefits by lowering resource consumption.

Microsoft’s Climate Innovation Fund 

Microsoft’s commitment to sustainability extends beyond its data-centres. In 2020, for example, the company launched its $1 billion Climate Innovation Fund to support green technology ventures. This fund has already invested $761 million in companies developing low-carbon building materials, including ventures focused on green steel and low-carbon concrete.

One example is Microsoft’s investment in H2 Green Steel (now Stegra), a Swedish company developing steel made with renewable hydrogen rather than coal. This method, which reduces carbon emissions by up to 95 per cent compared to traditional steel production, highlights Microsoft’s broader strategy to decarbonise the materials used across its supply chain. Similarly, Microsoft has partnered with CarbonCure, a company that injects carbon dioxide into concrete, effectively trapping it and reducing emissions.

Brandon Middaugh, who oversees the Climate Innovation Fund, has emphasised the importance of collaboration with suppliers, saying: “What we’re trying to do is be the catalyst… that gets these early contracts done.” By investing in these companies, Microsoft is supporting the development of sustainable materials that could eventually become mainstream, helping to bridge the gap between current practices and its ambitious 2030 goals.

Not The Only Tech Company with Sustainability Initiatives 

It’s worth noting here, however, that Microsoft is not alone in its sustainability strategy. For example, as part of a broader trend within the tech industry, other major companies, including Google, Amazon, and Apple, have also launched initiatives aimed at reducing their environmental impact, particularly in the area of data-centres.

Google has been a leader in renewable energy for over a decade, aiming to run all of its data-centres on carbon-free energy by 2030. The company’s “24/7 Carbon-Free Energy” initiative involves matching every hour of energy consumption with clean energy sources like wind and solar, effectively eliminating reliance on fossil fuels. Google has also pioneered the use of AI to optimise data-centre cooling systems, achieving reported energy savings of up to 30 per cent.

Amazon, too, has committed to reaching net-zero carbon by 2040 through its Climate Pledge initiative. The company’s sustainability efforts focus on renewable energy, with Amazon now being the world’s largest corporate buyer of renewable energy. Also, Amazon Web Services (AWS) is exploring advanced cooling methods and waste heat recovery to reduce the environmental footprint of its data-centres.

Apple’s approach to sustainability involves a combination of renewable energy and innovative materials. The company’s data-centres have been powered entirely by renewable energy since 2013, and it has implemented closed-loop manufacturing processes that use recycled materials for its products. In recent years, Apple has also started using recycled aluminium and rare earth elements in its devices, reducing its dependence on resource-intensive mining.

While each company’s strategy has unique elements, they appear to share the common goal of reducing emissions and adopting sustainable practices. Microsoft’s use of CLT sets it apart, however, as it is one of the first to incorporate engineered wood at a hyperscale level. This bold approach could inspire others in the industry to rethink their construction practices, particularly in regions where sustainable building materials like CLT are readily available.

Overcoming the Challenges of Green Construction 

That said, building with low-carbon materials like CLT is easier said than done and presents certain challenges. For example, CLT costs more than traditional timber and requires specialised knowledge for installation. David Swanson, a structural engineer involved in Microsoft’s data-centre design, has acknowledged these challenges but has noted that compared to traditional timber, CLT can be cost-effective for large projects due to reduced construction time and less need for skilled labour.

Another challenge is scalability. While CLT is gaining popularity, the supply chain for low-carbon concrete and steel remains fragmented, with smaller producers struggling to keep up with demand. To address these issues, Microsoft has been working closely with suppliers, ensuring they have access to the resources needed to develop sustainable alternatives. According to Jim Hanna, Microsoft’s data-centre sustainability lead, “It’s an all-hands-on-deck task to meet our sustainability goals.” 

Also, the technology behind green building materials is still evolving. For example, Microsoft has invested in Prometheus Materials, a company developing zero-carbon cement from microalgae. This technology (though promising) is still in its early stages and requires further testing before it can be widely adopted. As Hanna notes, “Planning for a net-zero carbon future is a complex exercise, requiring us to be system thinkers across the entire value chain.” 

Setting a Precedent for Green Construction 

Microsoft’s wood-based data-centres are more than just an experiment; they may represent a new direction in sustainable construction. By using CLT on such a large scale, Microsoft is challenging industry norms and encouraging other companies to consider alternative materials that are both sustainable and functional. This approach could pave the way for broader adoption of low-carbon construction practices across sectors, from technology to healthcare and education.

A Glimpse Into the Future? 

As the tech industry faces mounting pressure to reduce its carbon footprint, Microsoft’s strategy offers a glimpse into the future of green building. With its hybrid construction model, commitment to sustainable materials, and support for climate innovation, Microsoft is positioning itself as a leader in environmental responsibility. If successful, the wooden data-centres in Virginia could set a new standard for sustainability in the industry, demonstrating that innovation and sustainability can indeed go hand in hand.

What Does This Mean for Your Organisation? 

Microsoft’s venture into using wood as a primary construction material for data-centres may signal more than a commitment to environmental targets; it points to a future in which technology and sustainability can be seamlessly intertwined. While cross-laminated timber (CLT) still has hurdles to overcome in terms of cost, availability, and specialist knowledge, the success of Microsoft’s hybrid model could inspire a paradigm shift across the tech sector and beyond. If these pioneering data-centres prove effective, they could pave the way for other companies to adopt low-carbon materials in their operations, particularly in industries where data infrastructure continues to expand.

The potential of this project extends beyond Microsoft’s carbon reduction and could open doors to new possibilities for sustainable building on a large scale. By investing in CLT and other low-carbon materials, Microsoft may be driving demand and supporting innovations that could eventually reduce costs, making these options more accessible. Also, the impact of Microsoft’s choices is amplified by its partnerships and investments through the Climate Innovation Fund, which addresses gaps in the low-carbon supply chain.

This support plays a vital role in empowering smaller green startups and accelerating the market readiness of sustainable materials, a crucial factor if the construction industry is to meet its carbon reduction targets. For instance, the company’s collaboration with green steel and concrete companies demonstrates how leveraging corporate reach can catalyse broader adoption of sustainable practices across the entire value chain.

Tech News : Data Centres Now ‘Critical National Infrastructure’

Prompted by the effects of the global IT outage caused by CrowdStrike, the UK has moved to protect UK data-centres by classing them as ‘Critical National Infrastructure’ (CNI).

CrowdStrike 

Back in July, a global IT outage caused by a faulty update (impacting Windows systems) from the cybersecurity firm CrowdStrike significantly affected multiple sectors in the UK, including data-centres, the NHS, and the financial industry. It led to widespread disruptions and, although it was not a cyberattack, it does appear to be a motivating factor for the UK government’s announcement of a change classification of UK data-centres.

Not Just Protection Against Cyber Criminals 

Although the CrowdStrike effects may have been a major catalyst for the new classification of data centres, their classification as CNI should also help create provision to give them more protection from major environmental disasters and other IT blackouts.  This new classification is part of a wider movement to give them the special protection they merit. As highlighted in the government’s announcement, much of the data housed and processed in UK data-centres, such as photos taken on smartphones to patients’ NHS records and sensitive financial investment information, could be considered as “powering the economy”.

How Does The New Classification Compare? 

The idea to now classify UK data-centres as ‘Critical National Infrastructure (CNI)’ will mean that in terms of added protection, they have been put on an equal footing to water, energy and emergency services systems. This means that they can, as the government says: “now expect greater government support in recovering from and anticipating critical incidents, giving the industry greater reassurance when setting up business in UK and helping generate economic growth for all.” 

Also, as Technology Secretary Peter Kyle says: “Bringing data-centres into the Critical National Infrastructure regime will allow better coordination and cooperation with the government against cyber criminals and unexpected events.” 

More specifically, the government says this “support” will mean:

– The setting up of a dedicated CNI data infrastructure team of senior government officials who will “monitor and anticipate potential threats, provide prioritised access to security agencies including the National Cyber Security Centre, and coordinate access to emergency services should an incident occur”. 

– The government intervening in the event of (for example) an attack on a data-centre hosting critical NHS patients’ data. In this event, with the new classification of data-centres, the government says it will “ensure contingencies are in place to mitigate the risk of damage or to essential services, including on patients’ appointments or operations.” 

– The UK is already home to the highest number of data-centres in Western Europe. Giving CNI status to data-centres in the UK could increase business confidence in investing in data-centres in the UK, an industry which already generates an estimated £4.6 billion in revenues a year.

Deterrent? 

It appears that the government believes that the status will also deter cyber criminals from targeting data-centres that may house vital health and financial data, minimising disruption to people’s lives, the NHS, and the economy. Presumably, this deterrent effect would come from increased penalties, greater cybersecurity investment, and enhanced monitoring / better threat detection efforts.

Just In Time 

With the UK government recently welcoming a proposed £3.75 billion investment in Europe’s largest data centre (for DC01UK in Hertfordshire) and with it expected to create over 700+ local jobs and support 13,740 data and tech jobs across the country, the new CNI status for data-centres appears to have been given just in time.

The Cyber Security and Resilience Bill Too

As an additional measure, earlier this summer (during the King’s Speech), the government’s Department for Science, Innovation and Technology (DSIT) also announced it will be introducing the Cyber Security and Resilience Bill. It’s thought this will strengthen the country’s cyber defences by enhancing incident reporting requirements, helping safeguard vital sectors such as healthcare and finance, ensuring stronger protections against cyber threats like ransomware, and “mandating that providers of essential infrastructure protect their supply chains from attacks”. 

Support 

Support for the re-classifying of data-centres as CNI has come from several key data-centre industry players. For example, Bruce Owen, UK Managing Director of digital infrastructure provider Equinix, said: “We welcome today’s announcement by the government which recognises the critical nature of data centres and digital infrastructure to the economy and society.” 

What Does This Mean For Your Business? 

The reclassification of UK data-centres as Critical National Infrastructure (CNI) is a strategic response to immediate threats (like the CrowdStrike outage) and a forward-looking move to secure the country’s digital infrastructure. By placing data-centres on par with essential services like energy and emergency systems, the government appears to be trying to recognise their pivotal role in supporting the digital economy and vital public services such as the NHS.

As CNI, data-centres now gain access to increased government resources, including the support of the National Cyber Security Centre (NCSC), and a dedicated CNI data infrastructure team to monitor and anticipate threats. This could ensure quicker responses to vulnerabilities and a stronger defence against cyberattacks, particularly for centres hosting critical data, such as health and financial information. The new classification also aims to protect against broader risks, such as natural disasters or IT blackouts, which could severely impact businesses and public services alike, thereby trying to provide protection that takes account of any serious eventuality.

The government’s commitment to boosting this sector is clear, as evidenced by the approval of a £3.75 billion investment in Europe’s largest data-centre project in Hertfordshire. The new status, could, therefore encourage further investments, reinforcing business confidence and supporting sustainable growth in the tech industry. The Cyber Security and Resilience Bill, expected to be introduced soon, may also further strengthen these protections e.g., by enforcing stricter incident reporting and ensuring supply chain security for essential services.

Support from industry leaders reflects the importance of securing the country’s digital infrastructure, as more businesses rely on data-centres to manage sensitive information. This reclassification is not just a reactive measure, but many would argue it is a necessary step in ensuring the continuity of services that millions rely on daily.

By classifying data-centres as CNI, the UK is laying the groundwork for a more secure and resilient digital future. With increased investment, enhanced government support, and forthcoming legislative measures, this decision may help position the UK as a leader in digital infrastructure protection, helping to safeguard its economy, public services, and reputation as a global hub for technological innovation.

Sustainability-in-Tech : Rapidly Growing Water Demand For Data-Centres

Information recently obtained (by the Financial Times) has revealed that a huge spike in water consumption by dozens of facilities in Virginia’s “data-centre alley” likely means new initiatives to replenish or conserve water resources are urgently needed.

Usage Up By Two-Thirds 

The county authority figures show that water consumption at the data-centres of hyperscalers which surround Ashburn, VA (which host a staggering 70 per cent of the world’s internet traffic daily) was up by nearly two-thirds between 2019 and 2023 – from 5 billion litres to 7 billion litres!

Hyperscalers

So-called hyperscalers are large-scale cloud service providers that offer massive computing resources and include companies like Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform (GCP), IBM Cloud, Oracle, and Facebook. These companies play a major role in the technology landscape, providing cloud infrastructure that supports a wide range of services and applications globally. However, due to the expansion of power and water-cooling-hungry AI-driven infrastructure and data-centres, the water consumption of these hyperscalers has significantly increased in recent years.

For example, water usage at Microsoft data-centres rose by 34 per cent between 2021 and 2022, driven by the need to cool denser AI server racks and, similarly, Google reported a 20 per cent increase in water consumption, using 19.5 million cubic metres of water in 2022.

Why Water? 

AI workloads require highly efficient cooling systems to prevent overheating of servers, which run continuously and generate significant heat. The traditional cooling methods, therefore, often involve evaporative cooling, where water evaporates to absorb heat, lowering the temperature of data centre-equipment. This results in heavy water usage, especially those data-centres operating in warmer regions.

Water Demand Fuelled by AI Infrastructure Growth 

As cloud computing and AI have expanded, the need for more water (and more efficient water usage) has grown, i.e. AI infrastructure growth has fuelled the spike in demand for water.

Issues 

In addition to the sharp increase in water demand, there are in fact many other issues that need to be taken into account when looking at trying to tackle water usage. For Example:

– Water scarcity. Many data-centres are located in regions already facing water shortages or droughts. For example, in The Dalles, Oregon, a Google data-centre was criticised for using one-third of the city’s water supply in a drought-prone area. It’s easy to see how this places additional stress on freshwater supplies in regions where water is a finite resource.

– The environmental impact. The use of water for cooling in such large quantities, particularly in arid or drought-prone areas, can negatively affect local ecosystems and water availability for communities.

– An apparent lack of transparency. It seems that many companies are not transparent about their water usage, making it difficult to gauge the full impact on local water resources. Public reporting on water use, similar to energy use, remains inconsistent across the industry.

The Type of Water Used In Data Centres 

One key issue that deserves special attention is what type of water is used for data centre cooling. For example:

– Freshwater. Most data centres rely on freshwater sources, which are used in cooling towers for evaporative cooling. However, freshwater is a limited resource, and overuse can stress local supplies.

– Recycled water. It is worth noting here, however, that some hyperscalers are now beginning to use recycled or reclaimed water to mitigate their environmental impact. For example, Amazon Web Services (AWS) uses recycled wastewater in its Virginia data-centres, helping conserve high-quality water for community use.

Research 

Research by the British Standards Institution (BSI) and Waterwise’s “Thirst for Change” also makes some key points and recommendations that need to be considered when looking at the subject of data-centre use of massive amounts of water. It highlights the critical issues related to freshwater resource management, focusing on the growing urgency of water security in the context of global environmental challenges. Some of the key relevant points and conclusions from the research include:

– There is now a water security crisis. The research makes the point that freshwater is a finite resource, and the global water security crisis is just as urgent as climate change. Both population growth and increased demand for water, particularly in industrial sectors, are straining water supplies.

– The tech sector is still highly water-intensive, especially data-centres. With the rise of cloud computing, AI, and data-centres, the demand for water has skyrocketed, adding to the strain on limited freshwater resources.

– Water management and responsible water usage are now critical. The research emphasises the need for large-scale industries, including tech companies, to recognise their role in contributing to water scarcity and to adopt more sustainable water practices.

– There is a need for a circular economy in water usage, i.e. water recycling. One of the primary recommendations from the report is the need to transition towards a circular economy mindset in water use, particularly in sectors like tech. This involves recycling and reusing water wherever possible, reducing excessive freshwater extraction.

– Innovation in water efficiency is needed, i.e. water-efficient technologies, especially in data-centres. The research suggests that the wider tech sector needs to adopt innovative systems that support water reuse and reduce reliance on freshwater for cooling and other processes.

– Companies need to push beyond the environmental net gain of merely becoming water-efficient and to strive for a net positive environmental impact by replenishing water resources and engaging in water conservation initiatives.

Alternative Cooling Technologies 

The recognition of the need for action in meeting the cooling requirements of a data-centre boom fuelled by the growth of AI, and for data-centres to reduce their reliance on water-based cooling systems has led to experimenting with several alternative technologies. The hope is that one or more of them could be viable ways to address both efficiency and environmental concerns. Examples of such innovations:

– Liquid cooling. This is increasingly being adopted to handle high heat loads generated by AI and high-performance computing. It includes two main methods, namely direct-to-chip cooling, e.g. circulating liquid directly over a system’s heat-generating components (e.g. CPUs and GPUs) using cold plates, and immersion cooling. This involves fully submerging servers in a dielectric (non-conductive) liquid that absorbs and dissipates heat. This technology can eliminate the need for air cooling entirely, offering higher efficiency, especially for dense computing environments.).

– Refrigerant-based cooling. This method involves using refrigerants instead of water. Refrigerant-based systems have excellent thermal conductivity, making them more efficient at transferring heat away from components. They are becoming popular for high-density racks and can be scaled to handle increasing workloads.

– Chilled water systems. Some data-centres continue to use chilled water, but advancements like rear door heat exchangers (RDHx) are improving efficiency. These systems use chilled water to cool the air before it enters the data-centre, but now take up less space and offer “room-neutral” cooling, meaning the air exiting the system is at near-ambient room temperature.

– Air-based free cooling. This method uses external ambient air, particularly in cooler climates, to reduce the need for mechanical cooling. This approach works best in regions with cold climates, and it’s already being used in data-centres in places like Sweden and Finland.

– AI-optimised cooling. Ironically, the AI that’s creating more heat can also be used to optimise cooling efficiency by predicting heat loads and managing energy use dynamically. AI can help balance the use of cooling resources more effectively, ensuring that the cooling system is only used when necessary.

Water Replenishment Programmes 

It should be noted that one thing tech companies are increasingly investing in to help the situation is water replenishment programs. These are being used to offset their water usage, especially as data centres require significant cooling resources. As well as helping the tech companies to meet their sustainability goals and reduce water consumption, as the name suggests, these programmes are also designed to replenish water in communities, particularly in areas impacted by drought or water scarcity. Examples include:

– Amazon Web Services (AWS) which has implemented a range of water replenishment projects globally. For example, in 2023, its efforts returned 3.5 billion litres of water to local communities. AWS plans to expand this to over 7 billion litres annually across 21 projects, with initiatives in countries like the US, Brazil, Chile, and China. For instance, in Chile’s Maipo Basin, AWS is partnering with local farmers and using AI to improve irrigation efficiency, saving around 200 million litres of water annually. Similar AI-driven projects in Brazil are helping monitor water usage and soil quality.

– Microsoft is working towards becoming water-positive by 2030, aiming to replenish more water than it consumes. It has invested in over 49 replenishment projects worldwide, focusing on areas of high-water stress. These projects include restoring wetlands and repairing irrigation systems to improve water supply reliability. For example, in Mexico City, Microsoft is reviving traditional wetland agriculture, expected to replenish 3.8 million cubic metres of water over a decade.

– Google has committed to replenishing 120 per cent of the water it consumes by 2030. In 2023, its water stewardship projects have replenished over 1 billion gallons of water, addressing 18 per cent of its freshwater consumption. These projects focus on improving water quality and enhancing water efficiency across regions with high water scarcity.

All that said, critics might argue that water replenishment programmes often focus on offsetting usage rather than reducing consumption, making them more of a band-aid solution than a long-term fix for the growing water scarcity problem.

Energy-Hungry 

In addition to their massive water demand for cooling, it should be acknowledged that data-centres are also known for their huge energy requirements, a situation that is also getting worse with the growing demand for AI infrastructure. For example, investment firm Carbon Collective estimates that the electricity currently used by data-centres could power around 6.5 million average (U.S.) homes!

What Does This Mean For Your Organisation? 

As data-centres continue to expand and support the growing demand for cloud computing and AI infrastructure, their immense consumption of water presents a critical challenge that can no longer be overlooked. The surge in water usage, particularly in hyperscale facilities, means there’s now an urgent need for the tech industry to rethink its approach to sustainability. Relying heavily on water-intensive cooling systems is becoming increasingly untenable, especially as regions like Virginia and Oregon experience the strain of limited freshwater resources.

For businesses in the data-centre space, therefore, this trend highlights the necessity of embracing innovative cooling technologies, such as liquid cooling and AI-optimised systems, that reduce reliance on water while maintaining operational efficiency. Simultaneously, the shift toward using recycled water and investing in water replenishment programmes, as seen with Amazon, Microsoft, and Google, represents an important step toward more responsible resource management.

Ultimately, this evolving landscape presents an opportunity for tech companies to lead the way in sustainable water practices. By innovating and adopting circular water-use models, these businesses can mitigate their environmental impact, meet regulatory expectations, and build a more sustainable future for the industry. However, failure to act on this issue could not only jeopardise environmental sustainability but also risk operational and reputational challenges as resource scarcity intensifies.

Sustainability-in-Tech : Meta To Use Geothermal Power In US Data Centres

Meta (Facebook and Instagram’s parent company) says it has struck a deal to buy geothermal power from Sage Geosystems to supply its U.S. data-centres.

Why? 

Meta’s deal with Sage Geosystems is part of its push to support its sustainability goals while trying to meet the growing energy demands of its AI infrastructure. Geothermal energy offers a continuous, carbon-free, and reliable power supply, unlike intermittent sources like solar and wind, thereby ensuring stable operations for energy-hungry AI technologies. Also, by diversifying its energy mix, Meta can enhance its resilience and reduce reliance on a single source, thua partnering with Sage supports clean energy innovation and offers long-term cost efficiency through geothermal’s stable operating costs.

What Kind of Deal? 

Although the financial terms of the deal have not been disclosed, Meta says its new partnership with Sage Geosystems is a “first-of-its-kind project exploring the use of new, advanced geothermal energy in parts of the country where it has not been possible before”. 

Meta says the first phase of its project to use geothermal energy and utilise Sage’s proprietary Geopressured Geothermal System (GGS) to provide carbon-free power for Meta’s data-centres, will aim to be online and operating in 2027. As part of this partnership with Sage, Meta hopes to deliver “up to 150 MW of new geothermal baseload power” to support its data-centre growth.

It’s also worth noting here that the geothermal energy from Sage Geosystems will not actually be directly supplying each data-centre, but will feed the power grid. Meta could use renewable energy credits (RECs) and geothermal energy can help stabilise energy prices.

Geothermal Can Save Costs For Meta 

Meta has been overhauling its infrastructure to support AI workloads, refitting data-centres to accommodate AI-optimised chips. This AI push has driven up its expenses. For example, Meta has forecast $37-40 billion in capital expenditure for 2024 and warned that infrastructure costs will keep rising in 2025. Geothermal energy offers a cost-effective, stable power source, helping to manage these growing operational costs while ensuring reliable energy for its AI-driven operations.

Geothermal Energy – GGS Will Use Advanced Drilling

In Meta’s announcement of the deal, it highlighted how geothermal energy is a viable, renewable energy source across the US and how advanced geothermal energy is already being used in Nevada, Utah, and California.

However, Sage’s Geothermal Geosystems (GGS) technology aims to tap into geothermal energy by accessing heat from deeper underground than traditional methods. Using advanced drilling and reservoir engineering techniques, GGS can create geothermal systems in areas that were previously unsuitable for geothermal energy. This technology allows for broader geographic access to geothermal power, making it possible to deploy geothermal energy across the U.S. and beyond, even in regions without naturally occurring geothermal hotspots. Meta has, therefore, highlighted that one of the key advantages of its deal with Sage is that Sage’s technology can access geothermal energy virtually anywhere, giving hot dry rock as an example of a vastly abundant resource compared to traditional hydrothermal formations. This is why Meta believes Sage’s GGS technology is a highly scalable approach with the potential for rapid expansion across the US and globally.

Other Tech Companies Using Geothermal Too 

Several major tech companies, in addition to Meta, have explored or invested in geothermal energy to power their data-centres or other operations. For example, these include:

– Google. Back in 2021, Google announced partnerships with companies like Fervo Energy to integrate next-generation geothermal power into its energy portfolio. Google aims to run its data centres on 100 per cent carbon-free energy by 2030, and geothermal energy is part of its plan to provide a continuous, reliable power source.

– Microsoft has also shown interest in geothermal energy as part of its broader renewable energy initiatives. The company is committed to becoming carbon-negative by 2030 and removing its historical carbon emissions by 2050. Microsoft has, therefore, invested in various clean energy projects, including exploring geothermal energy to power its operations and data-centres, especially as it looks for sustainable energy sources that can meet the growing demand from AI and cloud computing.

– Apple. As part of powering all its global operations with renewable energy by 2018, the company has heavily invested in solar, wind, and biogas projects. However, it has also explored geothermal energy, particularly in regions like Nevada, where it has data-centres and renewable energy projects.

What Does This Mean For Your Business? 

Meta’s move to adopt geothermal power is a significant development, not only for its own operations but also for the broader business landscape. For Meta, the shift represents a strategic solution to the growing energy demands of its AI-driven infrastructure. As the company continues to expand its data-centres and refit them to support AI-optimised chips, geothermal energy offers a stable, cost-effective power source. This could help Meta manage its rising operational costs while contributing to its sustainability goals. For businesses like Meta that rely on large-scale AI processing and data storage, accessing renewable energy solutions like geothermal will become increasingly important in maintaining both operational efficiency and environmental responsibility.

Meta’s customers stand to benefit from this shift as well. As the company scales its AI capabilities, users can expect improved performance, reliability, and potentially lower costs passed on from energy savings. For those concerned about sustainability, Meta’s commitment to geothermal energy demonstrates a tangible effort to reduce its carbon footprint (as well as costs), aligning with the growing demand from consumers and businesses for greener practices.

This partnership also signals significant growth for geothermal energy and advanced technologies like Sage Geosystems’ Geopressured Geothermal System (GGS). By tapping into deeper geothermal resources, Meta and Sage could pave the way for the broader adoption of geothermal energy, making it viable in regions previously unsuitable for this form of power. As this technology scales, more businesses should have access to stable, carbon-free energy, supporting the growth of AI, cloud computing, and other data-intensive operations.

For competitors and the wider tech industry, this development highlights the increasing importance of renewable energy solutions. Companies like Google, Microsoft, and Apple are already exploring geothermal energy as part of their sustainability strategies, and Meta’s entry into this space raises the bar for the industry. The shift towards geothermal highlights how AI-driven businesses are rethinking their energy sources, and as AI continues to grow, we can expect more companies to follow suit in embracing renewable energy to power their operations.