News & media The Hot Topic of Data Centres – Data Centres Demystified Series
Article 3: Data Centres Demystified: Building the infrastructure of the future, pioneering sustainability in practice
In the previous article, we explored the myths and challenges surrounding data centres, from energy use and water demands to public health concerns. While these issues are real, the sector is evolving rapidly, showing that sustainability is not only possible but increasingly embedded in operational practices.
At Cordiant Capital, we believe that combining innovative technology, strategic energy sourcing and operational efficiency can create data centres that are both high-performing and environmentally responsible. This final article in the series highlights how these principles are applied in practice.
Energy efficiency: Smarter, leaner operations
Energy efficiency remains a core focus for modern data centres. While data centres consume significant power, advances in design and technology are helping to mitigate this. Modern facilities can use high-efficiency servers, AI-driven cooling, and innovative methods such as liquid immersion cooling to reduce energy while maintaining performance.
Heat reuse initiatives are becoming more common, capturing excess heat from servers to support local heating networks. According to the International Energy Agency (IEA), reused data centre heat could meet roughly 10 per cent of European space heating needs by 2030[1]. For example, Cordiant Digital Infrastructure Limited (CORD) has invested in Datacenter United (DCU), a Belgian data centre provider with 13 facilities. DCU has implemented a heat exchanger system at its Antwerp Tier IV facility, that channels surplus heat to nearby buildings. As with many initiatives championed by data centres, a wider change in infrastructure is needed and nuanced view is recommended. For heat to be properly reused, willing offtakers need to be identified and the local infrastructure needs to be built for this type of transfer. In addition, significant temperatures need to be achieved by the data centre; however, most operational activities produce waste heat of low quality (at or around 30°C).
Load-shifting techniques further optimise energy use, by scheduling workloads during periods of peak renewable energy availability, thus reducing reliance on fossil fuels and flattening demand peaks on the grid. Combined with AI monitoring, these techniques allow data centres to balance operational stability with environmental responsibility.
Renewable energy procurement: Powering with purpose
Energy sourcing is another critical element. Large tech companies and hyperscale operators are among the largest buyers of renewable energy worldwide. Through long-term Power Purchase Agreements (PPAs) and Renewable Energy Credits (RECs), these companies secure green energy, fund new projects, and drive innovation in clean power.
PPAs create a direct link between data centre operations and renewable energy production, ensuring clean energy is integrated into the grid rather than merely offsetting consumption. DCU, for example, has installed over 3,500 photovoltaic (PV) solar panels across its facilities, generating roughly 700 MWh of renewable energy annually and significantly reducing its carbon footprint. Reports by Ember, a global energy think tank, revealed that in sunny regions, such as Muscat in Oman or parts of the US, the cost of combining solar energy and battery storage to get to 97 per cent clean energy capacity has fallen by more than a fifth in the past year[2] , making renewables much more viable.
Water efficiency without compromise
Water is a critical resource for cooling, and its consumption varies by climate, facility design, and technology. Advanced solutions, including recycled wastewater, water basins, air-based cooling, and hybrid systems, allow data centres to minimise local water impact while maintaining operational stability.
DCU’s Oostkamp facility, for example, employs a water basin system, reusing millions of litres annually. Air-based cooling systems can eliminate freshwater use entirely in moderate climates, while hybrid systems balance water efficiency with power needs in hotter regions. By closely monitoring consumption, modern centres optimise water use in line with energy efficiency goals.
Standards and sustainability frameworks
Beyond technological solutions, many operators adhere to internationally recognised standards, such as ISO 50001 (Energy Management) and ISO 14001 (Environmental Management), to formalise and measure their sustainability efforts. These frameworks help operators benchmark performance, track improvements, and demonstrate transparency to regulators, investors, and local communities. Certifications like these complement operational initiatives such as renewable energy sourcing, heat reuse, and water recycling, creating a comprehensive approach to sustainable management.
Investment to drive change
Investors are increasingly influential in encouraging sustainable practices. By embedding sustainability into every decision, from solar panel deployment to water reuse and energy-efficient operations, investors like Cordiant Capital play a key role in setting standards for transparency, monitoring, and long-term planning.
A holistic approach: Balancing energy, water, and innovation
Sustainable data centres require a holistic approach. Energy and water efficiency, renewable sourcing, and innovative cooling strategies are interconnected. AI and real-time monitoring help operators optimise power and water use simultaneously, ensuring that trade-offs such as between water and electricity are carefully managed.
This holistic perspective enables centralised data centres to outperform smaller, distributed servers in environmental terms. Consolidation allows for optimised energy use, shared cooling systems, and coordinated renewable energy integration, reducing the overall footprint of the digital services society depends upon.
A path to the future
Responsible data centre management demonstrates that energy and water challenges can be addressed effectively. Data centres do not have to be the posterchild for fossil fuels and high carbon emissions. Continued investment in AI-driven management, renewable energy procurement, water-efficient cooling, and heat reuse can dramatically reduce environmental impact using methods that are already available.
By combining responsible management practices with investor support, facilities like DCU demonstrate that scale and environmental stewardship are not mutually exclusive. Centralised, efficient, and innovatively designed data centres are critical to the infrastructure of modern life, and they can do so while advancing sustainability. As public scrutiny and regulatory pressures grow, transparent reporting, standardised frameworks, and proactive sustainability initiatives will become essential differentiators for operators and investors alike.
With energy efficiency, water management, and renewable sourcing already within reach, the challenge lies in implementation, monitoring, and scaling, but the tools exist now to meet the growing demand for digital services responsibly.
[1] https://heatpumpingtechnologies.org/ai-and-heat-pumps-how-data-centers-are-shaping-the-future-of-energy-according-to-the-iea-in-a-new-report/#:~:text=The%20IEA%20notes%20that%20reused,needs%20(see%20Figure%201).&text=Additionally%2C%20the%20IEA’s%20Heat%20Pumping,even%20more%20efficient%20and%20scalable.&text=The%20report%20details%20the%20cost,is%20technically%20or%20economically%20unfeasible.
[2] https://www.ft.com/content/0f6111a8-0249-4a28-aef4-1854fc8b46f1