Considerations when developing Data Centres

I attended the Waterfront conference on Data Centres on Tuesday with my colleagues @Rosamond Harris and @Matthew Tucker.  It was a day of interesting and thought-provoking presentations and discussions.  What was clear is that the data centre sector is entering a more complex phase where power, planning and public value all need to align. The focus on speed and scale is still there but is now needing to be considered in light of sustainability, infrastructure readiness and community benefit.

Three points which kept recurring were:

• Power—not space—is now the critical constraint
  Demand for data centres (particularly driven by AI and hyperscale growth) is accelerating, but grid connections, transmission capacity and firm baseload power options are lagging. There is increasing reliance on solutions such as co-location with generation, private wire/“behind the meter” arrangements and hybrid energy systems to bridge the gap.  But how do we make sure they are only a bridge and not the permanent solution?

   

• Sustainability is not an afterthought
  Sustainability is more than just a buzz word and needs to be designed into projects early.  This means there is greater focus on emerging  integrated metrics (e.g. carbon-free energy scores), heat reuse, and aligning data centres with renewable generation. Co-location and use of waste heat—for example via district heat networks—are underutilised opportunities.

   

• Planning and social value are moving centre stage
  Policy, perception and process remain challenging. Data centres are critical national infrastructure but there is a lack of local policy to guide decision makers when determining planning applications. As a new (in terms of size, scale and urgent need for) and quickly changing technology the perception of impacts and benefits of data centres is open to misinterpretation.  Promoters of projects need to not only engage with communities but also educate them. 

We are advising clients on data centre developments and are navigating all these issues.  If you’d like to know more, contact me, Ros or Matt or take a look at our Data Centre Hub