Q&A with SVP Europe Hub, Power Division, Schneider Electric
It’s no secret that data centres are battling with increased power demands, particularly thanks to the surge in AI. But with AI being a double-edged sword — as its capabilities can help promote and facilitate energy efficiency while AI itself is a power-hungry beast — emphasis is on how data centres can keep powering essential infrastructure while being energy efficient themselves.
Ionut Farcas, SVP of Schneider Electric's Europe Hub for Power Products, is a passionate advocate of the critical role of data centres in addressing climate change and driving sustainability efforts.
Schneider’s Power Products business focuses on developing innovative solutions to transform electrical distribution and deliver more sustainable, efficient, connected, and circular products to customers. Ionut directly works with customers and partners to help them progress on their sustainability journeys by adopting the right tools and technology.
As a leader at one of the world’s most sustainable companies, highlighted by sister title Sustainability Magazine, Ionut offers insights into the environmental impact of data centres and strategies for reducing their carbon footprint.
In this exclusive Q&A with Energy Digital, he explores how digitalisation, energy-efficient practices and smart management systems can help data centres meet growing demands while minimising energy consumption.
Q. Given the urgent need to address the climate crisis, how do you perceive the current environmental impact of the data centre industry and what key challenges does it present in terms of greenhouse gas emissions?
The urgency of the climate crisis has never been greater. Earlier this year, EU climate services reported global warming has exceeded 1.5C across an entire year, unquestionably driven by human activity. According to experts, the current rate of emissions could mean crossing the Paris goal of limiting warming to 1.5°C as a long-term average within the next decade.
Currently, data centres consume about 3% of the global electric supply and account for around 2% of total greenhouse gas (GHG) emissions — levels equivalent to the entire airline industry. What’s more, with data centres expected to continue scaling at a pace of 12% annually, generating a predicted revenue of US$85bn in 2024, emissions figures are estimated to increase to 5-7% of the global emissions. This would have drastic effects on the climate if we don’t act today.
Q. In what ways do you believe data centres can serve as pivotal players in driving sustainability efforts and combating climate change? Are there specific strategies or technologies that you find particularly promising in this regard?
Data centres can be more friend than foe in the fight against climate change. They play a pivotal role in reducing GHG emissions, powering artificial intelligence- (AI) and Internet of Things (IoT)-connected devices that are vital tools to minimise our impact on the planet.
According to the IEA, to get on track with the Net Zero Emissions by 2050 Scenario, emissions must be cut in half by 2030 — and data centres will be key to achieving this ambitious goal.
To reduce operational emissions, the data centre sector needs to prioritise digitalisation. It is a win-win situation because this also helps make operations more resilient, guarantees business continuity and boosts energy security.
By digitising power distribution systems, data centres can use connected products to build an overview of an entire site’s energy landscape. By analysing this data, leaders can then make operations smarter, more productive and more profitable.
Greater connectivity enables wider data collection and enhanced analysis. Insights can be used to boost efficiency, with data captured from power systems enabling immediate and long-term benefits. Data collected in real time enables quick decisions when an issue demands immediate attention, while data accumulated over time provides insights that enable predictive maintenance and strategic investments.
Q. In light of the climate crisis, how do you assess the energy consumption and carbon footprint of the data centre industry today and what do you see as the primary energy-related challenges that need to be addressed?
One of the greatest pain points for data centre resilience has been how to accommodate the large amounts of energy required, sustainably. With the IEA estimating that global data centre electricity use will double by 2026, power distribution is perhaps the biggest constraint on development in data centre hotspots globally.
Our growing reliance on data centres has exposed two major challenges for operators in the future: resiliency and sustainability. In 2024, governments are increasingly scrutinising the building of data centres over fears that their high energy consumption will put excessive pressure on electricity grids.
This impacts energy security for the areas where they are situated and may hinder progress towards national climate targets if appropriate sustainability guidance is not followed.
Q. With the growing demand for connectivity and digital services, how can data centres leverage energy-efficient practices and smart management systems to meet these demands while minimising energy consumption and maximising resource utilisation?
In our increasingly digital world, we’ve witnessed an exponential growth in demand for data centre services. Any downtime or outage experienced across the value chain has fast become high-profile, headline-making news. And while data centre uptime has always been a business imperative with clear stipulations outlined in service level agreements, the sustainability of sites has only just begun to move up the priority list.
Connected products and connectivity investments enable long-term relationships between manufacturers, service providers and customers, facilitating ongoing communication to improve the efficiency, performance and reliability of power distribution systems.
This enhanced connectivity demonstrates that sustainability is made possible by responsibly, and proactively, maintaining uptime in operations — and by leveraging new technologies and implementing bold strategies, data centre leaders can adopt a new mindset.
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