Six ways to make data centres more sustainable


By Andrew Fox, General Manager, HPE Networking, Australia & New Zealand
Wednesday, 24 September, 2025

Six ways to make data centres more sustainable

As artificial intelligence and other compute-heavy technologies take centre stage, data centres are consuming more energy than ever before. In Australia, electricity demand from data centres is set to climb significantly over the coming decade, mirroring a global trend that shows no signs of slowing.

With the explosion of both structured and unstructured data, and the infrastructure required to store and move it, sustainability has become a central focus in data centre operations and strategy.

Confronting the sustainability challenge

Data centres are power-intensive by design. As workload demands rise, so too does their environmental footprint, which also leads to higher emissions. However, exactly how to achieve more sustainable operations has not always clear.

Data centres must therefore take a more proactive and innovative approach to achieving better sustainability. For example, using tools and technologies to better manage core components of their operations, such as leveraging digital twins, which are a digital replica of a real-world object, or advanced HVAC monitoring systems to better understand air flow changes and optimise operating conditions.

Location is also an issue and as a result, some innovative leaders are already looking to build near energy sources such as renewable and low-emissions options like hydro or solar to meet their energy requirements. Similarly, companies are building data centres in strategic geographic locations, such as colder climates, to leverage natural cooling for infrastructure, enhancing sustainability and cost efficiency.

As companies set their net-zero emissions initiatives, it is important that their targets are defined, measured and executed to ensure they align with established national and international regulations and deadlines. In Australia, this includes ensuring compliance with initiatives like the Safeguard Mechanism and state-based net-zero targets.

To help data centres overcome their sustainability hurdles, here are six key methods that operators can follow:

  1. Smarter, more efficient cooling: Liquid cooling technologies can minimise power consumption and enhance energy efficiency. As previously mentioned, we’re seeing organisations build their data centres in colder climates to reduce cooling needs naturally. Direct liquid cooling, which uses liquid channels to draw heat away from specific components, is gaining traction for its cooling efficiency.
     
  2. Dynamic power management: Real-time optimisation of energy consumption based on grid conditions can improve efficiency and reduce costs. For example, during periods of peak grid consumption, power usage could be reduced by delaying job start times by just an hour or two. In addition, dynamic power management technologies in switch and router systems can be deployed, shutting down unused line cards or ports and controlling fan speeds to optimise energy use based on current needs. Conversely, during peak demand or lower grid consumption, compute capacity can be scaled up to meet increased business requirements. These strategies help balance performance with environmental responsibility.
     
  3. Heavy recovery and reuse: Heat generated from data centre operations can be captured and repurposed to provide heating for nearby facilities and homes, transforming waste into a valuable resource. This approach promotes a circular energy model, where excess heat is redirected instead of discarded, reducing the environmental impact. Integrating data centres into local energy systems enhances sustainability and offers tangible benefits to surrounding areas and communities while addressing broader energy efficiency goals.
     
  4. Modular, recyclable infrastructure: To minimise e-waste, equipment should be designed with modularity in mind, enabling easier upgrades and the recycling of materials. Modular components allow for selective replacement or enhancement without needing to discard entire systems. Additionally, extending the lifecycles of equipment further reduces waste by maximising the use of resources and minimising the frequency of replacements.
     
  5. Energy-efficient optical technologies: Optics are a significant contributor to power consumption within data centres. Various initiatives are being developed and implemented to reduce the energy usage of optical modules to address this. Technologies such as linear drive pluggable optics (LPO), linear receive optics (LRO) and co-packaged optics (CPO) aim to optimise the performance of optical interconnects while significantly lowering their energy requirements.
     
  6. A commitment to net zero: Achieving net zero emissions isn’t a single initiative, it’s an ecosystem of changes. By optimising cooling, deploying intelligent power management, embracing renewable energy sources and incorporating sustainable design principles, data centres can not only meet emissions targets but lead on climate action. These strategic initiatives will help drive industry standards for energy efficiency and carbon reduction, contributing to a more sustainable future.

As Australia ramps up its investment in digital infrastructure, it’s essential that sustainability be baked into all digital transformation projects upfront. Advancing IT efficiency requires a multipronged approach that considers the entire lifecycle of products and workloads. In addition to technology innovations such as thermal management, advanced cooling techniques, adaptive power use and next-gen optics, renewable energy also needs to shift from aspiration to standard practice. Leaning heavily into this holistic way of thinking is already proving successful, but needs greater attention across private and public sector leaders to truly drive a more resilient future.

Image credit: iStock.com/imaginima

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