A comprehensive new whitepaper created and released by industry experts from IQ-EQ, BuildingMinds, Norton Rose Fulbright and ULI reveals that the data centre sector faces significant sustainability challenges that require immediate strategic action to ensure long-term viability and compliance with emerging regulations.

The in depth report, “Driving Sustainable Data Centres,” provides critical insights into an industry experiencing rapid growth while navigating increasing environmental responsibilities and regulatory requirements.

Water consumption surge

Key findings from the report include information on the water consumption surge. Data centres currently consume approximately 300,000 gallons of water daily for cooling—equivalent to 100,000 homes.

With AI expansion, Deloitte projects this could reach over 1.7 trillion gallons annually by 2027, creating significant resource management challenges.

Power demand and climate resilience

The report also finds that global data centre power consumption is expected to increase by 160% by 2030, driven primarily by AI applications. This growth will require substantial new renewable energy infrastructure investments estimated at $120 billion.

Nearly half of data centre operators have experienced extreme weather events that threatened operations, highlighting the need for enhanced climate adaptation strategies. It is also noted that major institutional investors managing over $70 billion in data centre assets are increasingly prioritizing sustainability metrics in their investment decisions.

Regulatory landscape

The regulatory landscape is constantly evolving in relation to the data centre sector and the report not only outlines global regulatory developments to keep an eye on but highlights key areas for immediate focus for those that operate within the sector.

These include renewable energy procurement, advanced cooling technologies and proactive regulatory compliance – to name a few.

“The data centre industry is at a pivotal moment where sustainability leadership will determine long-term competitiveness,” according to the report authors. “Organisations that proactively address these challenges through innovative solutions and strategic planning will be best positioned for future growth and regulatory compliance.”

Market transformation

The green data centre market is projected to grow from $81 billion in 2024 to over $308 billion by 2032, representing significant opportunities for operators who embrace sustainable practices.

The report emphasises that leading technology companies are already demonstrating that sustainability and operational excellence can be achieved simultaneously through strategic investments in renewable energy and efficient technologies.

“This research provides a roadmap for the industry to transform challenges into competitive advantages” the report concludes. “Success will require collaboration between operators, investors, regulators, and technology providers to build a more sustainable digital infrastructure foundation.”

Download report: https://iqeq.com/insights/driving-data-centres-from-environmental-liability-to-sustainable-powerhouse-a-new-whitepaper/