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According to Deloitte, global data centre electricity consumption is expected to double to 1,065 terawatt-hours (TWh) by 2030 – equivalent to four per cent of total global energy consumption – driven by power-intensive generative AI applications. The increasing strain on power grids – coupled with the rapid expansion of data centres – highlights the urgent need for reliable, sustainable backup power solutions.
“The data centre industry faces unprecedented challenges as we approach 2025” explains Graham Scandrett, Head of Electric Power Sales at Finning UK & Ireland, the world’s largest dealer of Cat® power solutions.
“The growth of AI and cloud computing is driving increases in power consumption. And although the sector is making strides towards sustainability, the demand for reliable backup power solutions remains paramount. This creates an urgent need to balance environmental responsibilities with operational resilience.
“Hydrotreated Vegetable Oil (HVO) is emerging as a practical solution for data centre operators looking to reduce their carbon footprint while maintaining the reliability of traditional backup power systems. With whole-lifecycle carbon emissions approximately 70 per cent lower than conventional diesel, HVO offers an immediate pathway to sustainability without compromising on performance or reliability.”
Scandrett continues: “We’re seeing a growing interest from operators to use sustainable fuels during both the testing phase and in operation as an alternative to diesel to achieve incremental reductions in the total carbon intensity of fuels while maintaining optimal backup power performance. The flexibility of HVO as a drop-in replacement, combined with its stability and storage advantages over other alternative low-carbon fuels, positions it as one of several strategic choices for data centre operators.
“As the data centre industry continues to expand, operators are increasingly focused on developing robust and sustainable backup power strategies. The next few years will be critical for the data centre industry as it balances rapid growth with environmental responsibilities. Forward-thinking operators are already exploring mixed-fuel strategies and investing in compatible generator systems to future-proof their operations. Success will depend on choosing the right partners and technologies to navigate this transition, particularly as we see the convergence of AI-driven demand growth and increasingly stringent environmental regulations.”
