A recently published report from Research and Markets highlights the opportunities for clean energy in data center growth over the next five years. The report, available at ResearchAndMarkets.com, estimates that global data center capacity is projected to grow at a compound annual growth rate of more than 25.5% through 2025.
The report, entitled “Data Center Infrastructure Management (DCIM) Market – Growth, Trends, and Forecast (2020-2025),” cites a number of factors behind the projected growth. First, data is a foundation of the global economy, with commercial enterprises of all types using ever increasing amounts of data. Increases in cloud computing, social media use and content delivery also contribute to growth in data center demand.
Data centers, of course, use huge amounts of energy. In addition to the power required to operate the facility itself, cloud and data traffic moving from and within a data center consume electricity around the clock. That power consumption creates heat, so additional power is required to manage data center air temperature.
Increasing power consumption requires data centers to adapt operating strategies to ensure reliability and availability of electricity and thermal capacity. On-site power production, particularly from clean energy sources, is the most compelling alternative for managing increasing power demand. On-site power is more reliable than electricity delivered via the grid and is typically cheaper as well.
Several factors contribute to lower costs for on-site power, including lower input costs, higher efficiency and no transmission losses. In addition, heat generated from on-site power generation can be used to manage data center thermal load. And, of course, clean energy provides a number of environmental benefits as well.
Windmill Capital Management works with developers and customers to finance new projects. Our goal is to eliminate financing as a friction point in the expansion of clean energy resources. Customers can typically acquire a clean energy system with zero out-of-pocket capital expenditures. At the end of the financing term, which is typically 8 to 11 years, the customer owns the project outright.
If you are a clean energy developer or a commercial customer considering acquiring a clean energy system, please contact us to discuss how we can help.