Wartsila Study Sees EUR 196bn in Data Centre Power Savings

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Wartsila Study Sees EUR 196bn in Data Centre Power Savings

Wartsila Study Sees EUR 196bn in Data Centre Power Savings

Industry News
Nov 03,26

Flexible off-grid engines could lower costs, water and land use while helping data centres support renewable energy growth, according to a Wärtsilä study.

Wartsila Study Sees EUR 196bn in Data Centre Power Savings

With global data centre capacity projected to almost triple by 2035, a new study from Wärtsilä examines how power choices could accelerate renewable energy growth while reducing costs, land and water use.

The study, Unlock power. Unleash growth: How data centres can create tomorrow’s power system flexibility, finds that powering 55 GW of data centres with flexible off-grid engines instead of combined-cycle gas turbines (CCGTs) could save EUR 196 billion over 20 years.

In the modelled scenario, engine-based solutions could use 99.97 per cent less water than CCGTs because they require less cooling. They could also occupy the equivalent of 2,200 fewer football pitches of land, as they need less generating equipment and battery energy storage to supply the same data centre demand.

The modelling explores a scenario in which global off-grid data centre capacity reaches 55 GW by 2035. Wärtsilä developed it using third-party forecasts, including BloombergNEF’s data centre outlooks, and an assessment of currently announced projects.

Onsite power is becoming an increasingly attractive option for data centre developers seeking to avoid lengthy grid connection queues. Once data centres connect to the grid, flexible engines could provide reliable backup power and help balance fluctuations in wind and solar generation.

Alongside renewables, flexible balancing capacity such as engines and energy storage could help enable a lower-cost, lower-emissions and more land-efficient pathway towards a 100 per cent renewable energy future. The study estimates that using the data centre boom to invest in technology that supports future energy systems could avoid up to EUR 200 billion in additional balancing-capacity costs over 20 years, subject to suitable grid and market arrangements.

“Data centres are making headlines for the power they consume, but far less attention is being paid to what their energy infrastructure could give back. Choosing the right technology can accelerate the deployment of data centres, cut costs and reduce pressure on land and water resources. Once grid-connected, this technology can also help balance the system and enable more wind and solar,” says Anders Lindberg, President of Wärtsilä Energy and Executive Vice President of Wärtsilä.

“The technology choices we make today will shape far more than the digital economy. Governments, regulators and system operators should reward the flexibility these assets can provide to turn one of the power sector’s biggest challenges into an engine of the energy transition,” he adds.

Data centres could also supply recovered waste heat to homes and businesses through district heating networks. Drawing on an International Energy Agency (IEA) estimate, the study says this heat could meet around 10 per cent of European space-heating demand and create EUR 180 billion in net economic value over 20 years.

Wartsila is calling on data centre developers, regulators and power system operators to work together to unlock the system-level benefits of onsite power technologies as they meet growing electricity demand and support the transition towards a 100% renewable energy future.