In the US, the politicization of data center development is underway, driven by its impact on power prices. As state governments seek ways to protect consumers, operators will need to engage in the policy debate.
Peter is a Senior Research Analyst at Uptime Intelligence. His expertise includes sustainability, energy efficiency, power and cooling in data centers. He has been a technology journalist for 30 years and has specialized in data centers for the past 10 years.
pjudge@uptimeinstitute.com
In the US, the politicization of data center development is underway, driven by its impact on power prices. As state governments seek ways to protect consumers, operators will need to engage in the policy debate.
The European Commission aims to ease climate risk reporting by removing mid-cap operators from CSRD's scope and delaying reports to 2028. But under current rules, 2025 reports are required and foreign-owned mid-cap operators stay covered.
The US’ SEC has withdrawn requirements for climate risk reporting, and the EU is revising its rules. Despite this, strong drivers remain for operators to measure their environmental impact
The cost of low-carbon green hydrogen will be prohibitive for primary power for many years. Some operators may adopt high-carbon (polluting) gray hydrogen ahead of transitioning to green hydrogen
Data centers are being included in national development plans as a source of economic growth. While this will ease operators’ access to land and power, it will also lead to more scrutiny from government and regulation.
The US government is applying a new set of rules to control the building of large AI clusters around the world. The application of these rules will be complex.
Uptime Intelligence looks beyond the more obvious trends of 2025 and examines some of the latest developments and challenges shaping the data center industry.
As AI supercharges the growth in data center energy demands, new developments are likely to be increasingly politicized. Central governments may support their expansion, but opposition from local authorities and environmentalists will grow.
Hydrogen from renewable sources is in short supply. While future plentiful supplies are planned, currently only a very small number of data centers are using hydrogen for standby power.
The UK has become the latest nation to classify data centers as part of the critical national infrastructure. But for data center operators, is this a welcome move?
Some operators are using natural gas for on-site power where the local grid is constrained. This will increase their emissions — but gas is essential in the transition to renewable energy and operators’ use of it is best seen in this light.
Data center operators are already required to reduce their impact on the climate and soon they may have to do the same with local habitats. Emerging nature restoration rules will demand action to preserve ecosystems and biodiversity.
Hydrogen is a promising energy storage medium that can help decarbonize infrastructure. It is not a great fit for the majority of data centers, and the hydrogen economy is not fully developed.
The 14th edition of the Uptime Institute Global Data Center Survey highlights the experiences and strategies of data center owners and operators in the areas of resiliency, sustainability, efficiency, staffing, cloud and AI.
According to a recent court ruling, European organizations are required to charge value added tax (VAT) on waste heat that they give away for free. This calls into question the economics of waste heat reuse.