As our world becomes increasingly digital, the hidden environmental cost of data centres — the engines powering everything from streaming services to AI — has come under scrutiny. A groundbreaking study comparing decarbonisation strategies in Singapore and the UK reveals critical lessons for Northern Europe, offering a roadmap to balance technological growth with planetary health.
The Invisible Environmental Toll
Globally, data centres account for 1% of energy-related greenhouse gas emissions—more than many countries. In Singapore, where 93 data centres consume over 1,000 MW of power, the government imposed a moratorium on new builds in 2019 to address energy and water scarcity. The UK faces similar pressures, with data centres consuming 2.5% of national electricity, a figure set to rise as AI and cloud computing expand.
The study underscores a stark reality: while digitisation promises efficiency gains, the infrastructure enabling it—often housed in unassuming warehouses—demands vast energy, water, and land. For Northern Europe, where cities like London and Amsterdam are key data hubs, balancing digital ambition with sustainability is non-negotiable.
Lessons from Singapore’s Green Playbook
Singapore’s approach offers a blueprint. After lifting its moratorium in 2022, the city-state introduced stringent sustainability criteria:
- Energy Efficiency: New data centres must achieve a Power Usage Effectiveness (PUE) of ≤1.3.
- Renewable Energy: Operators must transition to 100% renewables, using credible certificates and power purchase agreements (PPAs).
- Tropical Innovation: Raising data hall temperatures to 24–31°C (from 18–22°C) reduces cooling needs—a model adaptable to warmer European summers.
These policies highlight the importance of regulation-driven innovation. For the UK, adopting similar standards could accelerate progress toward its 2035 net-zero grid target.
Tech Solutions: Beyond the Low-Hanging Fruit
The study identifies three pillars for greener data centres:
- Energy: Transitioning to renewables is critical. Singapore’s solar and hydrogen trials, though limited by space, inspire offshore wind integration—a strength for the UK.
- Cooling: Liquid immersion cooling cuts energy use by 40%, but high costs and risk aversion hinder adoption. Northern Europe could incentivise retrofitting through tax breaks or grants.
- Software: Efficient coding and AI-driven energy management reduce workloads. For example, Google’s DeepMind cut cooling costs by 40% using machine learning—a tactic scalable across Europe.
Policy and Finance: Building a Green Ecosystem
Singapore’s Green Mark Certification and Climate Neutral Data Centre Pact (signed by tech giants like Google and Microsoft) show how policy and corporate accountability can align. The UK’s Climate-Related Financial Disclosure rules could be expanded to mandate data centre sustainability reporting.
Sustainable finance is equally vital. Green bonds for data centre retrofits, coupled with “step-up” loans (where interest rates rise if targets are missed), could unlock capital. Northern Europe’s robust financial sectors are well-placed to lead this shift.
Workforce and Culture: Breaking the Risk-Averse Mindset
A recurring theme in the study is the industry’s risk aversion. In Singapore, 70% of operators resisted higher ambient temperatures due to perceived risks, despite evidence of safety. Training programmes, like Singapore’s Data Centre Academy, are closing skills gaps—a model for UK apprenticeships.
Cultural change is also key. As one interviewee noted, “Sustainability isn’t a buzzword; it’s a survival strategy.” Northern Europe must foster collaboration between tech firms, regulators, and universities to mainstream green practices.
Challenges Ahead: Avoiding Carbon Colonialism
Singapore’s moratorium led some operators to relocate to Malaysia and Indonesia, where lax regulations risk carbon leakage. For the EU and UK, harmonising standards across borders is essential to prevent shifting emissions elsewhere.
A Call to Action: From Cloud to Climate Resilience
The path to sustainable data centres isn’t easy, but Northern Europe has the tools:
- Governments: Mandate PUE standards and renewable quotas.
- Businesses: Invest in liquid cooling and AI efficiency tools.
- Individuals: Support providers using renewables and pressure firms to disclose footprints.
As Singapore’s journey shows, the digital and green transitions are intertwined. By learning from global pioneers, Northern Europe can turn data centres from climate villains into sustainability champions—powering a cleaner, smarter future.
Source
Liu, F.H.M. et al. (2025), Decarbonising digital infrastructure and urban sustainability in the case of data centres, npj Urban Sustainability, 2025-04-23
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