Corporate Social Governance and Data Centers

Data Centers are expensive to build and operate. With their known impact on the environment—high power consumption fueled by increasing load densities—investors in Data Centers need to be a key part of the green energy revolution. Some large-scale Data Centers, like Amazon and Google, are using their influence for good by using sustainable methods to power their facilities.

In this current environment, investors are factoring sustainability into their decision-making process. And it is starting to make a difference. Corporate environmental, social and governance (ESG) initiatives have been around for years. As climate change becomes a more serious issue, ESG is getting serious traction with financial institutions and investors, including those who invest in Data Center projects.

Digital Realty and Equinix are two Data Center operators using green funds to support their Data Centers; and Aligned is using a relatively new tool, sustainability linked loans (SLL), to fund Data Center construction. This arrangement includes a requirement to meet specific sustainability KPIs, such as use of renewable energy, and reporting on ongoing sustainability efforts.

Sustainable Data Centers are a key element to addressing climate risk. Data Center investors are looking to ensure they are meeting the needs of stakeholders and the environment. This requires a clear-eyed look at current practices to understand how to incorporate sustainable best practices, build sustainable facilities, and effectively retrofit existing facilities to maintain optimal energy efficiency.

Check out DSI’s Energy Services here: We Help You Go Green.