Discover how our innovative metrics set new standards for measuring data center sustainability by integrating sector coupling.

In recent years, the global volume of data has expanded at an unprecedented pace, driven by the growing demand for data storage, processing and connectivity. According to recent studies, the total amount of data worldwide increased by 314 percent between 2015 and 2020, reaching over 64 zettabytes. By 2030, this figure is expected to exceed 660 zettabytes, representing a more than tenfold increase.1

As the volume of data continues to grow exponentially, the need for a robust and efficient digital infrastructure becomes ever more critical to the modern economy. Data centers play a pivotal role in this infrastructure, serving as the backbone of the digital economy. They store, process, and manage vast amounts of information and provide the computational power essential for a wide array of digital applications. However, the rapid expansion of data centers comes with significant sustainability challenges. Data centers consume a substantial amount of energy and often rely on fossil energy sources, when renewables are unavailable.2 Currently, data centers account for about 1.4-1.6% of total EU electricity consumption, a figure projected to grow in the coming years.3

nLighten’s Carbon-Free Energy Study, developed in collaboration with the Eni Enrico Mattei Foundation (FEEM), offers innovative insights into achieving sustainable data center operations. This blog delves into the study’s key findings and their implications for the future of data center sustainability. 

Table of Contents

  1. The Importance of 24/7 Carbon-Free Energy
  2. What’s the CFE Study about?
  3. nLighten’s Sector Coupling Methodology

The Importance of 24/7 Carbon-Free Energy

Traditionally, reducing the carbon footprint of data centers has consisted of efficiency improvements as well as the use of renewable energy from Power Purchase Agreements (PPAs) and/or Guarantees of Origin to match energy consumption with renewable energy generation on an annual basis. In recent years however, the concept of achieving 24/7 Carbon-Free Energy (CFE)4 has gained traction, particularly within energy-intensive industries like data centers.

The 24/7 CFE approach goes beyond annual matching by ensuring that every kilowatt-hour of electricity consumed is correlated with available carbon-free energy sources – every hour of every day, everywhere. The 24/7 CFE score calculated on the basis of this approach, accounts for the real-time availability and fluctuations of renewable energy sources, which can vary significantly throughout the day. By providing a more granular measurement of renewable energy usage, this score can quantify reductions in carbon emissions, from measures which support the weather dependent capacity of renewables, such as onsite renewable generation and grid stabilizing.

Our Carbon-Free Energy Study highlights the importance of transitioning to 24/7 Carbon-Free Energy, so that Data Centers can measure and improve their positive influence on the local energy infrastructure. 

What’s the CFE Study about?

nLighten’s Carbon-Free Energy Study extends the established 24/7 CFE concept by introducing a holistic, sector coupling-based view. While traditional CFE indicators measure the carbon content of the electricity supplied and consumed by data centers, our Integrated CFE score goes further. It incorporates factors such as the recovery and use of heat and extends beyond the data center to include connected buildings and systems. This inclusive approach quantifies the positive impact of sector-coupled data centers on the community and provides a more transparent measurement of environmental impact and decarbonization efforts.

nLighten’s Sector Coupling Methodology

Our proposed methodology integrates various energy sectors to enhance efficiency and sustainability. Key components include:

  • Heat Recovery involves recovering heat generated by server loads and transporting it to support the energy needs of local communities. This process provides a carbon-free heat source, thereby improving overall energy efficiency and aiding the energy transition of local heating networks. By integrating heat recovery systems, data centers can significantly reduce their environmental footprint while contributing to sustainable community development.

  • Grid stabilization is the strategic injection and withdrawal of energy to correct capacity errors and ensure consistent delivery. This process actively assists in stabilizing the energy grid while ensuring resilient data center operations. It typically involves the use of batteries, onsite renewable generation, or a combination of both. By implementing grid stabilization measures, data centers can contribute to the overall stability and sustainability of the energy grid.

  • Onsite generation refers to the production of carbon-free energy directly at the data center using various renewable sources, such as biogas generators or solar panels. This energy can be used to assist in powering the data center itself or to help stabilize the electrical grid. By generating renewable energy on site, data centers can reduce their carbon footprint, enhance energy independence, and contribute to grid stability and sustainability.

  • Power Purchase Agreements (PPAs) are contracts that commit the data center to purchase renewable energy volumes for an extended period. Through a PPA, a data center can guarantee a certain amount of energy sourced from local renewable sources, such as hydro stations or wind farms. This ensures that the energy is reliable and sustainable. By committing to long term and local procurement of renewable energy, data centers enhance their environmental stewardship and support the transition to a renewable energy future.

nLighten’s sector coupling approach sets a new benchmark for sustainability, ensuring a more efficient and interconnected energy system that benefits both the environment and local communities. By integrating components such as heat reuse, grid stabilization, on-site generation, and Power Purchase Agreements (PPAs), nLighten optimizes energy use and production while significantly reducing carbon emissions in surrounding areas.

Combining the 24/7 CFE and sector coupling approaches, nLighten has also developed an improved set of metrics that provide a comprehensive view of data centers’ environmental performance, establishing a new standard for sustainability. These holistic metrics enhance the accuracy of sustainability assessments and quantify the positive impacts of decarbonization efforts on surrounding communities.

nLighten operates a network of regional and local edge data centers across Europe’s key economic hubs. To find out how we can help you achieve carbon-free energy and enhance your data center’s sustainability, download the full CFE Study or contact our team.


[1] United Nations (N/A): Big Data for Sustainable Development. Link: https://www.un.org/en/global-issues/big-data-for-sustainable-development 
UBS (Jul 2023): How the data universe could grow more than 10 times from 2020 to 2030. Link: https://www.ubs.com/us/en/wealth-management/insights/market-news/article.1596329.html

[2] ING (OCT 2023): Data centre growth proves crucial in the shift towards a digital economy. Link:https://think.ing.com/articles/data-centre-growth-proves-crucial-in-shift-to-digital-economy/ 

[3] EU Science Hub (2023): The EU Code of Conduct for Data Centres – towards more innovative, sustainable and secure data centre facilities. Link: https://joint-research-centre.ec.europa.eu/jrc-news-and-updates/eu-code-conduct-data-centres-towards-more-innovative-sustainable-and-secure-data-centre-facilities-2023-09-05_en 

[4] UN Energy (N/A): 24/7 Carbon-free Energy CompactLink: https://www.un.org/en/energy-compacts/page/compact-247-carbon-free-energy