UII BRIEFING REPORT 166 | FEBRUARY 2025
Briefing Report

Low-carbon hydrogen: not yet viable as primary power source

Low-carbon hydrogen, produced by electrolysis using renewable electricity, is a promising technology for future industrial decarbonization. However, it remains neither affordable nor plentiful enough to serve as a viable primary energy source for data centers — and is unlikely to be so for many years.

In some locations, operators may be able to source sufficient low-carbon hydrogen to provide on-site standby energy (see Hydrogen fuel cells: a niche option for standby power).

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