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The Green Energy Impact on Hyperscalers

Green energy is an ongoing conversation in virtually every industry, so of course data centers are a part of that. And as more large corporations realize that an obvious way to cut costs and increase revenue is to cut out the middlemen, it makes sense that we will see an increase in the purchase of renewable energies by those corporations, which includes Hyperscalers, or large scale data centers.




Data Centers and Energy

Data centers require a tremendous amount of energy. Countries on average see 2 to 3 percent of their energy go to data centers, largely because of the cooling requirements in these large warehouses, but also because of the amount of energy called upon to store and manage data, particularly as we see an increase in blockchain technology. One Bitcoin transaction requires the equivalent of 50 days of power for the average US household.


Thus, it makes sense as we see more businesses and individuals shift their data storage to data centers to cut down on their own requirements, that companies that own data centers would want to have more control over their energy necessities and production.  


The Shift Toward Green Energy

Green energy has been part of global conversation since at least the 1960s with the publication of Rachel Carson’s Silent Spring, and we have seen companies gradually shifting toward more eco-friendly practices as they have become more conscious of the public demand.


In the last decade, as countries have made more global agreements to crack down on their own practices, regulations have shifted and companies have had to get in line, updating their energy production demands, and thinking more about the energetic impact of their products and services.


Why Hyperscalers Are Shifting

Hyperscalers like Google and Amazon have a particularly large motivation to invest in renewable energy as on-site generation is the ideal way to implement renewable energy in data centers, and these Hyperscalers take up a lion’s share of data centers in the US.


Google in particular is committing to going completely renewable, and has made several land purchases to that end, both to acquire wind farms and solar farms.


These Hyperscalers are driven by motivations both internal and external.


Internal Motivations

Internal motivations that drive Hyperscalers include an increase in customer demand. Public awareness is growing exponentially when it comes to green energy and eco friendly practices, and people are realizing the power of their dollars when it comes to company practices.


Hyperscalers are aware of this, and thus make the necessary moves to go more green.


External Motivations

The primary external motivation of course is the ability to cut out the middle man and increase profits. While going green may require an initial large scale investment, the long term savings are potentially limitless.


This shift is more practical than anything.


In the end, the green revolution has clearly made its way to large corporations at long last, and as it spreads, we can expect it to trickle down to smaller scale companies and data centers.


Thus, it will be more beneficial for data centers across the globe to make this shift as well, as we will obviously see more client demand as public awareness continues to grow.