By Jamieson Lee Hill, January 24th, 2023

With cloud computing on the increase, the number of data centres will rise in the future. If more data centres across the world join the circular economy, the carbon footprint for this sector could be significantly reduced as the industry becomes more sustainable. In this article, we explore data centres in terms of the current linear economy and what it will take for data centres to join the circular economy. 

Data Centres and The Linear Economy

In the past, data centre facilities have been very much part of the linear economy with the design life of a data centre being about 10 to 15 years. This means that every decade or so the expensive and energy intensive equipment needs replacing which has a significant impact on the environment. The circular economy is an alternative to the current linear practices and can reduce the environmental impact of the industry as a whole. 

The Growth of Cloud Computing

IT and cloud computing can play a crucial role in the circular economy because the industry is predicted to grow globally by 19.9%  between 2021 and 2029. As the industry expands, the demand on data centres will increase and the impact on the environment; we are entering a new digital age,

“We are presently on the verge of a revolutionary digital industrial technology. Cyber physical systems can communicate with one another in this fourth technology wave in business by employing artificial intelligence (AI), machine learning (ML), Big Data, and the Internet of Things (IoT), among other technologies.”

Source: Springer.com, July 1, 2022

What is the Circular Economy?

Ellen MacArthur, founder of the Ellen MacArthur Foundation, defines the circular economy as a ‘framework for an economy that is restorative and regenerative by design.’ The question of sustainability is now being evaluated across the world by every industry. The Oxford Dictionary describes the circular economy as,

“an economic system based on the reuse and regeneration of materials or products, especially as a means of continuing production in a sustainable or environmentally friendly way.”

What are the 3 Main Principles of the Circular Economy?
The circular economy is based on 3 principles which are design led: “eliminate waste and pollution, circulate products and materials (at their highest value), and regenerate nature.” (Source: Ellen MacArthur Foundation.org, 2023)

With these core principles in mind, let’s look at ways data centres can become more sustainable and circular in their practices. 

How Can Data Centres Become Part of the Circular Economy?

Fundamentally, data centres need to examine the lifecycle of their ‘IT and critical infrastructure when building new centres’ according to Carsten Baumann, Director Strategic Initiatives and Solution Architect at Scheidner Electric. This is instead of waiting for IT equipment to reach the end of its lifecycle and being thrown away. Baumann believes that focusing on the lifecycle of the IT infrastructure can help companies improve their bottom line and to fulfil sustainability KPIs. Furthermore, Baumann suggests the following 3 strategies over hardware to make it sustainable:

Alternatives To New Equipment

One way to embrace circular economy principles is for data centres to ‘purchase refurbished, remanufactured or used equipment’ according to Baumann. This lowers the carbon footprint and impact on the environment and can also save the company money. New equipment has a heavier impact on the environment because raw materials need to be extracted and manufactured. Using refurbished or remanufactured equipment extends the lifecycle of products which is aligned to circular economy principles.

Work With Organisations Dedicated to Circular

Data centres can be circular by finding suppliers who provide environmentally friendly products; products which have a lower carbon footprint and have been refurbished, recycled etc. Some companies such as Cisco are closing the loop and being circular by taking back their waste products. They remanufacture and refurbish waste products to extend their product lifecycle. Likewise, small businesses benefit from this because Cisco provides them with lower cost options for equipment which have been refurbished or recycled. 

Partnering and collaborating with companies who are committed to the circular economy enables a culture of sharing best practices and implementing innovation. 

Sustainable Prefabricated Modular Solutions

Baumann’s third recommendation in his World Economic Forum article is for companies to use ‘ready-to-use modular solutions that are sustainably made data centres with preassembled systems.’ They are pre-built with only the required materials used. Also, they are much quicker to install and that means that data centre expansions are faster. The combined effect is that there is much less waste than the traditional approach.

Cloud Centric Models

Data Centre Magazine.com reported in April 2022 that  ‘In recent years, the global data centre industry has worked miracles.’ Expert Sam Steers explained how,

“In  2015, the total energy consumed by the global data centre industry totalled approximately 189 terawatt-hours, with traditional enterprise and colocation data centres accounting for the lion’s share (97.62 TWh) of that consumption.”

Source: Data Centre Magazine.com, April 2022

Even though the capacity of data centres had grown considerably from 2015 to 2021, the total estimated energy consumption for the data industry was 189 TWh in 2021. Therefore, the data industry had stayed flat using a cloud-centric model with large, hyperscale campuses. Economies of scale were derived from leading hardware innovations including liquid cooling, renewable power and improved server design. This bodes well for the future if this progress can be maintained.

The Value of Data Centre Waste

The United Nations estimates the value of printed circuit board waste at $62.5 billion each year. Components on circuit boards which have reached their end of life have immense value states Andrew Gomarsall, MBE, the Executive Chairman of N2S,

 ‘Up to 40 rare and precious metals including gold, silver, platinum, copper and palladium. Many of the materials used are in increasingly limited supply, or hard to access and are lost due to ritual processes with a detrimental effect to our planet.”

Source: Data Centre Magazine.com, April 2022

Therefore, it is essential that data centres start to extend product life cycles and to recycle, refurbish and remanufacture valuable waste materials.

Summary

Data centres produce high amounts of carbon and heat which impact on the environment, but through innovation in hardware and cloud centric models they have flattened the total energy consumed between 2015 and 2021. Moreover, data centres can be a major player in spearheading the circular economy and their waste products have real value in the global economy. In the process of going circular, data centres will save money and resources and their bottom line will improve.

No doubt it is going to take a collective effort with data centres working with other organisations dedicated to the circular economy. But in sharing best practices, data centres and their partners can build a more sustainable future for the industry. 

References

1. World Economic Forum: https://www.weforum.org/agenda/2022/07/datacentres-must-join-the-circular-economy-to-become-greener/
2. Springer.com: https://link.springer.com/article/10.1007/s43615-022-00191-9
3. Ellen MacArthur Foundation.org: https://ellenmacarthurfoundation.org/topics/circular-economy-introduction/overview
4. Data Centre Magazine.com: https://datacentremagazine.com/data-centres/the-road-to-a-truly-circular-economy-in-data-centres
5. Cisco: https://blogs.cisco.com/partner/cisco-is-closing-the-loop-on-the-circular-economy