Energy Transition Monthly: Green data centres are delaying the energy transition

Every new data centre, however efficient, is adding to the demand for power and as such works counter to the energy transition. Read all about it in this month's Energy Transition newsletter.

Tips & feedback to Anne-Louise Stranne Petersen or email [email protected]

New state-of-the-art data centres are marvels of energy efficiency and low carbon footprint. However, even the most impressive data centre first and foremost presents a demand for resources. Steel for construction, microchips for processing, water for cooling and power for everything.

Crucially, a new data centre does not replace any demand for resources. It only adds to the demand and hence works counter to the energy transition. That goes for even the renewably powered data centres as every rack of servers sourcing energy from the wind or sun or the earth’s gravitational pull is shadowed by an already existing demand that is not being moved away from coal, lignite or gas.

Green data centres are delaying the energy transition. Read in full here...

ICYMI

Here’s a wrap-up of energy transition infrastructure developments in March that caught our eye:

• Despite hosting the world’s largest floating wind farm, the 88 MW Hywind Tampen, Norway is struggling to scale up its floating offshore ambitions. ?

• An announcement arrived stating that the hitherto unknown NatPower UK, supported by PE player Tyrus Capital, would invest no less than ￡10 billion ($12.5 billion; €11.6 billion) in clean energy in the UK, including 60GWh of battery storage. ?

• Finally, the UK wants small modular nuclear reactors and Great British Nuclear has now bought two sites for the purpose. The winners of the bid for UK’s first SMR tender should be announced later this year. Brookfield-owned Westinghouse and QIA-supported Rolls-Royce?SMR are invited to bid, as are EDF Energy, GE-Hitachi Nuclear Energy International, Holtec Britain, and NuScale Power.

How renewables are taking centre stage

Higher energy prices, technological developments, policy support and – in the case of solar – lower equipment costs are driving record renewable energy capacity installations, says Legal & General Investment Management (LGIM) ’s Marija Simpraga. Read more

Top 5 stories

• How alternative maritime fuels are making waves
• Time for infra investors to get comfortable with critical materials
• Australia’s CEFC should pursue more ‘catalytic’ forms of capital
• Tasmania to Tokyo: Asian markets look to Australia for green hydrogen
• PODCAST: Where electric vehicles meet infrastructure investing

The impact of the Inflation Reduction Act so far

The landmark bill offered hundreds of billions for clean energy and decarbonization measures through grants, loans, tax credits, and other incentives. But is the IRA delivering on its potential? Wood Mackenzie’s research analysts share trends and challenges they are seeing across the power and renewables industry. Download the summary

Read all our coverage on Energy Transition and more here....