ESG Challenges in the Digital Infrastructure Expansion

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photo of a large data center and digital infrastructure space

The global economy has a seemingly inexorable appetite for expanding the digital infrastructure – whether it’s deployed on-premises, in co-located data centers, or by cloud service providers, all the servers, networking, and storage gear require buildings, HVAC systems and power generation facilities to support them.  The booming demand for power-intensive artificial intelligence (AI) systems has served to turn this appetite into a ravenous hunger.

On the flip side is the expansion of environmental, social and governance (ESG) regulations which aim to drive more sustainable practices.  The discussion surrounding these challenges in the digital infrastructure sector is deeply intertwined with global efforts to combat climate change. As companies strive to comply with ESG regulations, the carbon footprint of data centers becomes a focal point of these initiatives.

The surge in electricity consumption required to power these technological advancements not only exacerbates sustainability concerns but also complicates compliance with these regulations aimed at reducing carbon footprints. Infrastructure and Operations leaders are caught in the middle – trying to scale up their service capacity while meeting ESG goals and finding space and power for their growing infrastructure.

In this challenging environment, computational storage solutions emerge as an innovative tool for I&O leaders to use in aligning data center growth with ESG goals through enhanced energy efficiency.

The Environmental Footprint of Data Centers

Data centers, the backbone of our digital economy, are now some of the most significant electricity consumers globally. This growing energy demand poses a substantial challenge for data center operators, who face delays in expansion projects due to power supply limitations. The International Energy Agency (IEA) reporting that data centers accounted for 460TWh of electricity consumption in 2022 and projecting a rise to over 1,000TWh by 2026. Utilities are struggling to bring enough additional power generation and distribution capacity online to meet the growth in demand from data centers, as evidenced by reports from Arizona Public Service and Dominion Energy, two large utility companies in the US.

Another factor that data center operators must contend with is electronic waste (e-waste). Recycling of electronic equipment, responsible disposal, and reuse or extending the service life of servers, storage, and networking equipment all contribute to the sustainability of the data center and other digital infrastructure.

Efficiency as a Key to ESG Compliance

While the digital economy demands ever-increasing amounts of data storage and processing, IT and AI digital infrastructure efficiency is perhaps the most critical vector for meeting ESG goals and improving sustainability. In the context of data centers and their ESG challenges, there are several efficiency metrics to consider, with “work per watt of energy consumed” standing out as the top concern. Component manufacturers strive to improve the performance per watt in each new generation of processors and ASICs.  Additionally, new cooling techniques (such as liquid cooling and immersion cooling) offer some improvements.  But their adoption can be limited by the need for significant retrofitting in existing data centers. Re-architecting workflows and applications can further enhance efficiency by optimizing the use of electronic components.  But these changes can require specialized skillsets and/or significant up-front investments.  Computational storage drives (CSDs) stand out in this context, offering a simple to deploy solution that integrates compute functions directly within storage devices to enhance both device-level and system-wide efficiency.

CSDs not only contribute to reducing power consumption per unit of work but also play a crucial role in minimizing the equipment needed for data processing. For example, a cloud service provider using CSDs reported a 40% reduction in the amount of equipment and the power consumed to deliver their service.  This dual benefit is critical for data centers looking to mitigate their environmental impact and align with ESG goals.

The Challenge of ESG Regulation Compliance

Complying with ESG regulations is increasingly becoming a blocker for companies needing to expand and update their IT and AI infrastructure. These guidelines demand stringent reductions in carbon emissions and improvements in sustainability practices. The complexity and cost associated with deploying new, more efficient technologies can deter organizations from pursuing necessary upgrades. However, computational storage help users navigate the compliance labyrinth by enabling significant energy savings without the need for specialized skills or extensive system overhauls.

By adopting computational storage, companies can not only enhance their data processing efficiency but also significantly reduce their carbon footprint and e-waste. This aligns with the goals of ESG regulations, which prioritize sustainability and responsible environmental stewardship in corporate practices.

Preparing for a Sustainable Future

The path to a sustainable future in AI and data center infrastructure is paved with challenges, particularly in meeting the energy demands of burgeoning technologies while adhering to regulations. Computational storage emerges as a key technology in this journey, providing a means to alleviate the power consumption challenges associated with AI digital infrastructure and data centers.

As we move forward, the adoption of computational storage and other energy-efficient innovations will be crucial for the industry to align with ESG goals and mitigate the environmental impact of digital expansion. These technologies not only address immediate demands for improved “work per watt” efficiency but also set the course for data centers and AI infrastructures that are both high-performing and sustainable.

Conclusion

The expansion of AI and data center digital infrastructures brings to light significant ESG challenges, primarily related to the substantial increase in electricity consumption and the resulting carbon footprint. As the industry seeks to comply with stringent regulations, computational storage offers a promising pathway to enhance energy efficiency and reduce environmental impact. By integrating computational storage solutions, companies can not only meet the surging demands on data center infrastructure but also contribute to a more sustainable and responsible digital future. This alignment with sustainable goals underscores the importance of innovation in paving the way for sustainable growth in the technology sector, ensuring that the advancements in AI and data.

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