By Matthias Gromann
As sustainability mandates expand, data centers are under increasing pressure to accurately document their energy use and greenhouse gas emissions. Operators must meet federal, state, and global sustainability standards, which require comprehensive tracking of emissions across all levels, including the often elusive Scope 3 emissions tied to indirect suppliers and manufacturing processes. This endeavor—covering millions of IT components—is essential to balancing compliance with the need to reduce environmental impact. Â
Rising Energy Demand And The AI BoomÂ
Data centers in the U.S. consumed around 73 billion kWh of electricity in 2022, a figure that will only grow as artificial intelligence (AI) and machine learning capabilities expand. A report from Newmark found that overall consumption of data centers across the U.S. is likely to reach 35GW by 2030. The computational power required for AI operations is a primary driver behind this increase, putting pressure on even the most ambitious net-zero goals. With AI deployment accelerating across sectors, energy efficiency and sustainability in data centers have never been more critical.
Navigating Scope 1, 2, And 3 Emissions Requirements
The corporate sustainability landscape for data centers is shaped by stringent reporting requirements for Scope 1, 2, and 3 emissions:
- Scope 1 Emissions involve direct emissions from sources operated by the company, such as diesel generators that support backup power. Data centers can reduce these emissions through resource planning and alternative energy sources, such as transitioning to electric vehicles for on-site transport.
- Scope 2 Emissions encompass indirect emissions from purchased electricity. In data centers, efficient design—such as preventing equipment hotspots that demand additional cooling—can reduce these energy needs.
- Scope 3 Emissions present the most significant documentation challenge, involving emissions from upstream activities, such as manufacturing, distribution, and installation of IT hardware. Reducing these requires sustainable sourcing of energy-efficient devices and components.
However, documentation comes first, often requiring companies to assess hundreds of thousands of assets to build a comprehensive sustainability profile. With the right tools, emissions data is centralized, and environmental profiles of devices—such as those specified in Environmental Product Declarations (EPD)—can be applied across device types to streamline this task and ensure accuracy.
Meeting Dual Regulatory Pressures
As regulatory expectations grow, compliance for data centers involves meeting a variety of federal and state energy efficiency standards. For instance, some states require data centers to source increasing shares of power from renewable energy and adhere to upper limits on power usage effectiveness (PUE). These mandates reflect the shift toward both minimizing environmental impact and ensuring resilience in the energy grid. On top of energy consumption, reporting metrics increasingly include energy reuse factors, renewable energy sources, and waste heat utilization. For many operators, this level of transparency poses complex data management challenges, leading them to turn to digital platforms to unify documentation and reporting.
The Role Of Digital Documentation In Sustainability Reporting
To meet the rising demand for transparent sustainability reporting, data center operators should leverage advanced documentation platforms. These tools centralize all IT assets within a single digital infrastructure, enabling real-time tracking of energy use, greenhouse gas emissions, and lifecycle data. By cataloging each device type and storing emission data, data centers can access a complete, audit-ready record of their environmental impact.
Powerful analytics dashboards provide operators with insights to identify and reduce inefficiencies, revealing hidden energy burdens and suggesting actionable steps for equipment optimization. Through ongoing monitoring, operators can schedule maintenance and replace outdated equipment proactively, extending device lifespan while cutting operational costs and energy demands. This digital infrastructure, therefore, enables data centers to align with both regulatory demands and sustainable practices.
Beyond Compliance:
The Financial Benefits Of Sustainability Reporting
In addition to meeting regulatory expectations, data centers that proactively document and reduce emissions often find that their environmental, social, and governance (ESG) profile attracts favorable financing. Financial institutions are increasingly prioritizing investments in companies that demonstrate transparency and commitment to sustainability. By fulfilling these requirements and showing measurable reductions in their ecological footprint, data center operators can position themselves competitively in the market and gain access to funding opportunities that support their green initiatives.
As data centers strive toward climate neutrality, the adoption of efficient, centralized reporting systems is not only about regulatory compliance but also a strategic choice that reduces operational costs, enhances sustainability, and contributes to a greener economy.
Matthias Gromann is the VP Product Architecture & Strategy and Corporate Sustainability Officer at FNT Software.
