Have diesel backup generators for data centers reached their end of life?

The growing demand for data centers, fueled by the rise of AI and other digital services, has significantly increased the energy use of the technology sector. This surge has also exacerbated their environmental impact, as data centers consume substantial amounts of electricity, much of which still comes from non-renewable sources, to sustain their power and cooling needs. In fact, according to an IDC report1, it is predicted that power consumed by data centers worldwide will grow by 19.5% annually, doubling between 2023 and 2028 to reach 857 Terawatt hours (TWh). This pressing scenario highlights the need for sustainable solutions in an industry that serves as the foundation of the expanding digital economy.

The role of backup generators for data centers is essential in ensuring continuous operations during power interruptions, which can occur due to utility grid failures, rolling blackouts, natural disasters, electrical faults, or other disruptions. They prevent data loss and system crashes, maintaining business continuity by minimizing downtime. Additionally, they protect sensitive equipment from damage due to power fluctuations, safeguarding critical infrastructure.

Diesel generators, once considered essential for their dependable performance in preventing downtime, are now under increased scrutiny because of their substantial carbon emissions. As environmental regulations become more stringent and companies pursue ambitious decarbonization targets, the search for alternative solutions that combine reliability with sustainability has gained momentum.

As data centers increasingly strain global energy systems, the demand for innovative, sustainable backup power and fuels solutions has never been greater. These advancements are crucial for ensuring operational resilience and supporting communities with unreliable energy, paving the way for a more secure and sustainable energy future.

New alternatives

The shift to clean energy alternatives in backup power systems is instrumental in reducing emissions from fossil diesel and advancing Scope 1 reduction goals. Several technologies are emerging as viable solutions, including Hydrogen Fuel Cells, Battery Storage, Biomethane, and Hydrotreated Vegetable Oil (HVO)/Biodiesel. However, since most backup generators currently run on diesel, HVO and biodiesel often present the most cost-effective and sustainable options. On the other hand, biomethane becomes the most practical alternative for generators operating on natural gas, as it requires no modifications to existing infrastructure.

Among these options, biodiesel stands out with the potential to reduce CO2 emissions by 50-90% compared to conventional diesel. Similarly, biomethane, derived from organic waste, represents a sustainable and efficient choice that supports the circular economy.

Hydrotreated Vegetable Oil (HVO) has also emerged as a compelling alternative, combining lower greenhouse gas emissions with a smaller overall environmental footprint. Produced from

waste fats and vegetable oils, HVO outperforms both conventional diesel and biodiesel in terms of emissions reduction and operational efficiency. Its compatibility with existing diesel engines and infrastructure allows businesses to integrate it seamlessly, providing a cleaner-burning fuel that lowers nitrogen oxides and particulate emissions.

For businesses looking to significantly advance their decarbonization goals, HVO presents a viable and scalable solution. Industry leaders such as tech giant Meta have adopted HVO in their data centers as an alternative to burning diesel. It is a dependable option for sectors that prioritize efficiency and sustainability as it makes the switch to greener energy sources easier without necessitating significant operational adjustments.

Another alternative to traditional backup power systems is a natural gas generator, which, while cleaner-burning than diesel and more reliable and less vulnerable to weather-related disruptions with its underground pipelines, remains a non-renewable energy source.

Compared to other fossil fuels such as coal and oil, natural gases produce up to 50% less CO2 and significantly lower levels of sulfur dioxide (SO2) and nitrogen oxides (NO). However, it still contributes to greenhouse gas emissions and raises environmental concerns, making it a less-than-perfect solution for sustainable energy needs.

These solutions are particularly valuable for helping companies achieve their Scope 1 emissions reduction targets, directly addressing one of the primary sources of their carbon footprint.

Competitive edge

Adopting clean energy alternatives for backup power generation offers a significant competitive edge. Beyond drastically reducing greenhouse gas emissions and meeting stringent environmental standards, these solutions enable companies to lead in sustainability, aligning with global goals while differentiating themselves in the marketplace. By staying ahead of tightening regulatory requirements, organizations ensure compliance and mitigate operational risks, fostering resilience. For example, Microsoft has invested in renewable fuel generators to provide backup power at their Mount Pleasant data center campus; these backup generators are expected to run for less than 24 hours per year on average. Moreover, embracing cleaner technologies boosts a company’s brand value, signaling a strong commitment to sustainability that appeals to customers, investors and stakeholders, thereby enhancing market positioning.

However, capturing this competitive advantage requires navigating challenges. Companies must assess the availability of alternative fuels, ensure compatibility with existing infrastructure and evaluate the total lifecycle emissions of each option.

Strategic planning and thorough evaluation are essential to unlocking the full potential of these forward-thinking technologies, securing both environmental benefits and leadership in business-critical matters.

What’s in store for data centers?

As the digital economy continues to grow, the tech industry and data centers in particular must evolve to strike a balance between operational reliability and environmental responsibility.

While diesel generators have served as the industry standard for decades, their reign as the default backup solution is nearing its end, with the rise of AI, projects and data centers need generators between 4000 kVA, compared to the previous standard of 2000 – 3000 kVA, and companies are looking for ways to offset their carbon emissions.

HVO sees an increase in demand, but due to an unmatured supply chain, suppliers struggle to provide HVO at the required rate. When compared to diesel, availability is limited and dependent on the region. Some data centers have backups ready for HVO, meaning companies can switch to sustainable diesel alternatives when the supply chain allows.

By adopting cleaner energy alternatives, companies can significantly reduce their environmental impact, support decarbonization goals and contribute to a more sustainable future for the data center industry.