World spending on enterprise digital transformation is predicted to achieve $3.9 trillion by 2027 – a pattern that’s largely fueled by the adoption of automation and AI applied sciences as companies look to optimize key processes to extend productiveness and sustain with opponents.
Digital applied sciences like AI require a major funding in digital infrastructure to permit for the storage and nearly instantaneous processing of huge quantities of information. The information facilities that accommodate this infrastructure require substantial cooling methods that in some instances use a colossal quantity of power.
On account of this and elevated digitalization, information facilities at present eat 1.5% of all the worldwide electrical energy generated. At a time when power costs are at file ranges, this has intensive monetary implications for companies trying to undertake these applied sciences.
On the similar time, the introduction of laws that requires disclosures about actions that affect the setting that will replicate on an organization’s monetary situation, resembling that of the Securities and Trade Fee within the US or Company Sustainability Reporting Directive (CSRD) within the EU, are placing rising stress on companies to stick to ESG and sustainability initiatives.
Data Center Balancing Act
Consciousness of the connection between these two seemingly unconnected traits is changing into extra outstanding, leaving companies with a urgent conundrum to resolve: Methods to steadiness rising digital wants with sustainability initiatives in a means that doesn’t mitigate enterprise solvency or success?
One answer to this problem is to contemplate the geographical location of your information middle.
Historically, information facilities have been situated in shut proximity to core enterprise places. Issues over community connectivity and latency speeds have necessitated this up to now – and naturally, there are some datasets that also require edge websites, both from a processing velocity perspective or for safety causes.
But with elevated world connectivity, it’s now attainable to look additional afield to places that go well with the technological necessities of AI and help with carbon discount too.
Look North
The Nordic area, for instance, advantages from wonderful connectivity and low latency networks, to not point out a steady financial local weather and entry to expert a workforce. The true differentiator, nevertheless, is the constantly cool local weather that permits the implementation of extremely energy-efficient cooling applied sciences, resembling direct-to-chip liquid cooling, that cut back the necessity for air con and thus use significantly much less energy.
Entry to dependable energy sources is changing into a premium as the information middle business quickly expands. Some international locations are already unable to attach extra information middle websites to their nationwide grid as a result of there merely isn’t sufficient energy out there. The Nordics profit from an abundance of steady, low carbon, and renewable power sources together with hydro, photo voltaic, geothermal, and wind energy.
These power sources are significantly cheaper than pure gas-powered amenities and can be found at aggressive costs. In truth, many power suppliers within the Nordics provide long-term energy agreements that mitigate the chance of enormous fluctuations in pricing.
Moreover, the idea of warmth reuse is extensively accepted and inspired within the Nordics as a part of round financial system ideas and so many power suppliers are open to recycling waste warmth from information middle websites to be used within the native communities.
These components imply that trendy information facilities within the Nordic area enable prospects to make the most of the infrastructure as a decarbonization platform which may contribute to enterprise carbon discount and different ESG targets.
Tackling the ESG conundrum
Firm leaders should inevitably juggle the various calls for of the enterprise world to make sure profitability. The rise in consciousness of the AI vs. ESG conundrum is one other instance of two challenges changing into extra vital on the agenda of management groups.
By understanding the connection between these components, it’s attainable to future-proof expertise necessities and mitigate the monetary and environmental affect which may in any other case happen.
Eva Sóley Guðbjörnsdóttir is CFO and deputy CEO of atNorth.
