Data Centres across Europe struggle to meet decarbonisation goals amid growing energy demands

As global demand for data processing surges and with it, an increase in energy demand and carbon emissions from data centres, operators across the UK, France and Germany are battling to achieve decarbonisation targets.

A survey published by CFP Energy sheds light on the energy transition efforts of data centres in Europe, with a range of other key industries featured.

While most data centre operators have taken steps toward decarbonisation, significant barriers threaten progress, with the rapid growth of artificial intelligence (AI) intensifying energy usage and complicating sustainability goals.

The full report: ‘Decarbonising the Future: Navigating ETS Reforms and Net Zero Solutions’, highlights similar challenges across aviation, manufacturing, shipping and construction sectors.

Decarbonisation strategies show mixed progress across countries, CFP Energy survey finds

90% of all data centres surveyed have a decarbonisation strategy, with the UK leading at 94%, followed by Germany (90%) and France (86%). However, success in hitting targets reveals a sharper divide. Only 52% of French operators report meeting their decarbonisation goals, compared to 70% in Germany and a notable 78% in the UK.

The adoption of green solutions for energy transition varies widely across nations

Green Certificates are most popular in France (71%) and Germany (60%), while the UK lags at 50%. Biofuels see the highest uptake in the UK (56%), compared to 43% in France and only 20% in Germany. Power Purchase Agreements (PPAs) are widely embraced in Germany (70%) but less so in France (57%) and the UK (50%). Voluntary Carbon Offsets lead in Germany (80%), followed by 67% in the UK and 43% in France.

Data centres in Europe face key hurdles in decarbonising, with multiple challenges highlighted by respondents

69% cite a lack of suitable technology, hindering the adoption of renewable energy or energy-efficient systems. 61% identify funding limitations as a barrier, with high upfront costs delaying green investments. 63% point to regulatory complexity as a challenge, particularly for cross-border operations.

Knowledge gaps also exacerbate difficulties, especially for smaller data centres struggling to design and implement effective decarbonisation strategies.

AI: Fueling expansion and exacerbating energy pressures in data centres

AI is reshaping the industry, driving unprecedented growth in computing power demand. While AI adoption is critical for innovation, its energy-intensive nature is pushing data centres to their limits. While AI has the potential to accelerate the energy transition through predictive systems and efficiency optimisation, its current implementation often exacerbates the strain on energy resources.

The survey highlights an urgent need for collaboration across governments, industry stakeholders, and technology providers to address these barriers. Streamlined regulatory frameworks, enhanced funding mechanisms, and technological innovation will be critical to ensure data centres can meet rising energy demands sustainably.

George Brown, Head of Content at CFP Energy, shared his concerns

“Data centres operate at the cutting edge of the technology sector, many of which are operated by the largest tech firms on the planet. And yet they are becoming a major issue for businesses to manage from an energy consumption and carbon emissions perspective. As more applications of AI and new technology such as self-driving cars get online, the demand for data will continue its exponential growth.”

CFP Energy urges industry leaders to act decisively, leveraging insights from this survey to shape policies and partnerships that accelerate the energy transition.