Data Center and Energy Consumption: Problem or Need? (Part 1)
Part 1: NO! We're Not the Villains of the Story

We ended 2024 and began 2025 with a very rewarding feeling for those of us working in the Data Center sector. We have gone from being a cost center that few outside our industry cared about—only making the news when something went wrong—to becoming the darling of the tech world. Presidents are discussing Data Centers in press conferences, they are present at international forums like Davos alongside CEOs of major multinationals and the banking sector, and, as usual, all fame comes with its dark side. 

There is increasing public noise about the high energy and water consumption of Data Centers. In fact, we all know someone in the industry who, wanting to invest in areas for Data Center construction, is now facing resistance from local authorities. We are starting to be accused of contributing to climate change and being an obstacle to sustainability—and I don’t think that’s fair 😤😤.  

Instead of questioning the existence of Data Centers, the debate should focus on the value they generate and how we can optimize their positive impact.  

Today, more than ever, their role in society is crucial, and those of us working in this industry must defend them as the true engines of global progress. The consumption of our Data Centers reflects the consumption of businesses and society as a whole—our usage patterns depend on how we leverage the technology available to us. It’s the same paradox seen in the textile industry or the consumption of low-cost products in general.

We should focus on highlighting how Data Centers generate solutions that benefit millions of people, from education to healthcare, from scientific research to digital inclusion.

Humans always in contradiction

We can all agree that we live in an increasingly technology-dependent society. However, there is an evident contradiction: while we demand unlimited cloud storage, artificial intelligence in our daily lives, and instant access to information, we criticize the infrastructure that makes these advancements possible.

Few consider that every time we upload a photo to the cloud, send an email, or perform an internet search, we are activating processes within a Data Center. 

Instead of rejecting technology, the real challenge is to make it more efficient and sustainable, and this, my friends, is where we shine, because if there's one thing we know, it's efficiency, and if there's one area we've evolved in, it's in designing and building more efficient systems..

Manufacturers of power, climate, and IT equipment have been improving their hardware and software for years to be more efficient, and yes, it can be improved! That's always the case, but few industries have cared as much about energy as we have. Why? Because energy costs are one of the highest expenses for a Data Center. It's true that it could be said it has been partially out of selfishness, but the reality is that we have cared. 

There is no debate, Data Centers can improve society

Far from being an obstacle to sustainable development, Data Centers are driving advancements in various areas that benefit humanity:

    Sustainability and energy efficiency: 

  • AI models optimize energy consumption in cities and businesses. .
  • Companies like Google and Microsoft operate with renewable energy and advanced cooling systems, reducing their ecological footprint.. 

    Management of essential resources: 

  • Water optimization: Artificial intelligence allows for predicting droughts and managing water distribution in areas of scarcity. 
  • Precision agriculture: Sensors and data analysis help improve crop yields with less water and energy consumption. 
  • Water transportation losses: Technology allows us to identify network failures, anticipate them, and study, indeed, points of efficiency in water usage..

    Reduction of inequalities: 

  • Access to education and healthcare: Cloud platforms facilitate telemedicine and online education in underserved regions. 
  • Digital inclusion: Global connectivity projects rely on Data Center infrastructure to bring internet to disconnected communities.

We are not different, this has happened before:  

This noise around us is not a new phenomenon. Throughout history, many technologies were attacked for their initial impact before becoming pillars of human development:

  • The Industrial Revolution: It was criticized for its high coal consumption and the loss of artisanal jobs. 
  • Global electrification: In its early days, electricity was feared for its cost and safety risks. Today, it is the foundation of modern civilization. 
  • The internet: In its early decades, it was considered a threat to privacy and traditional commerce. Today, it has democratized information and expanded opportunities for millions of people.

The pattern repeats: new technologies face initial rejection, but over time they evolve and prove their value.

A Call to Defend the Data Center as a Driver of Progress

Data Centers are not the problem; they are part of the solution. Their energy consumption is real, but their positive impact is undeniable. Instead of focusing solely on their resource consumption, we should talk about how we can maximize their contribution to humanity.

  • Companies and governments should invest in more efficient technologies instead of stalling innovation. 
  • As professionals in the sector, we have the responsibility to communicate the true value of Data Centers and defend their role in the evolution of society.

Every technological revolution has had its critics. But history shows that when used correctly, these technologies are the ones that end up driving progress. In this sense, Data Centers are not a burden on the world; they are the infrastructure upon which we will build the future.

 

Power Purchase Agreements (PPAs) in Data Centers: A Strategy for Sustainability and Stability