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DECARBONIZING TELCOS AND DATA CENTERS Accelerating Sustainability Across the Telecommunications and Data Center Ecosystem  

The telecommunications value chain, consisting of infrastructure providers, data centers, and telecom operators, faces increasing energy demands due to advancements in digitalization, AI, cloud computing, and 5G. While these technologies boost communication efficiency, they also lead to higher electricity consumption and a growing carbon footprint. Managing energy consumption is now a critical priority for the industry.

In 2022, the Information and Communication Technology (ICT) sector contributed 2-3% of global emissions, with projections suggesting this could rise to 14% by 2040 without intervention. To meet Science Based Targets initiative (SBTi) goals, the industry must cut emissions by 45% by 2030 compared to 2022 levels.
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STRIVE can support companies in achieving these climate goals by offering comprehensive decarbonization solutions, leveraging environmental commodities across all scopes.

Our Offering

Renewable Electricity Solutions for Scope 2

Energy Attribute Certificate (EAC) Procurement: Reduce your Scope 2 emissions with global Energy Attribute Certificates (EACs) like European GOs, US-REC, and local certificates such as LGCs in Australia. Make your renewable electricity investments easier with managed procurement, verification, and retirement services.
Power Purchase Agreements (PPAs) and Virtual Power Purchase Agreements (vPPAs): With long-term PPAs and vPPAs, you can trace emissions reductions back to one specific energy source while enjoying more stable electricity costs.

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Energy Efficiency for Scope 1

Identify and implement energy efficiency solutions fitting for your organization, leveraging financial opportunities to sustain your investment. Where relevant, we can help you obtain White Certificates and optimize their value to finance up to 100% of your energy efficiency project, potentially reducing Scope 1 emissions.

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Beyond Value Chain Emissions

Companies can leverage carbon credits to tackle beyond value and residual emissions and achieve sustainability targets, both contributing to climate mitigation (avoidance) and neutralizing unabated emissions (removals).

Supplier Engagement for Scope 3

Optimize your supply chain to drive down Scope 3 emissions. Engage with critical suppliers through workshops to pinpoint reduction opportunities and share best practices. Support them in setting Science-Based Targets by providing resources and technical assistance. Develop a joint emissions reduction roadmap with clear milestones and integrate sustainability criteria into your procurement strategy to encourage alignment with your goals.

Biofuel Solutions for Scope 1

Diesel generators are essential infrastructure for data centers, ensuring reliable backup power during outages. Data centers can reduce their scope 1 emissions by transitioning from diesel to HVO or biodiesel for back-up power.

Reduce Corporate Tax Liability

Participating in IRA tax incentives can lower your corporate tax liability. You can also invest in U.S. renewable energy development, offsetting the costs of renewable energy purchases and internal projects. Throughout the transaction process, you will receive expert support in sourcing, facilitation, and contract negotiation.

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Renewable Gas for Scope 1

Switch to renewable natural gas (RNG) to minimize carbon emissions in back-up generation for data centers.

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Related content

The Future of Data Centers under the Energy Efficiency Directive (EED)

As the digital landscape evolves with the increasing demand for AI, cloud storage, and other digital services, data centers are at the heart of this transformation. However, this growth comes with the challenge of managing significant energy consumption, prompting a shift towards more sustainable practices. Our comprehensive white paper delves into the specific impact of the revised EU Energy Efficiency Directive on data centers.

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Network and internet communication technology concept, data center interior

Customer Benefits

Diversify and Stabilize Your Renewable Energy Supply 

Access a broad portfolio of renewable energy sources, including wind, solar, and hydropower, ensuring a stable and diversified energy supply.

Maximize Cost Savings 

Increase purchasing power where STRIVE by STX can negotiate better rates for renewable energy, carbon projects, and many other solutions, resulting in cost savings.

Capitalize on Government Incentives and Tax Credits

Identify and leverage available government incentives, tax credits, and subsidies for renewable energy adoption and decarbonization projects.

Navigate Environmental Compliance with Confidence

Effectively navigate environmental regulations and compliance requirements, helping companies navigate complex regulatory landscapes and meet emissions reduction targets.

Enhance Operational Efficiency and Sustainability

Access solutions to optimize energy use, reduce waste, and improve overall operational efficiency in data centers and telecommunications networks.

One-stop shop for climate action

Climate action is at STX’s core, and supported by more than 20 years of experience in the environmental commodities markets, we can serve as an  integrated partner across Climate Action Consulting and environmental commodities.

Decarbonizing is not just about meeting regulatory requirements; it’s about enhancing your competitive position, optimizing costs, and contributing to a sustainable future.

Supercharge your business with aN assessment on what solution mix can help you meet your decarbonization goals.

FAQ

  • What is the carbon footprint of data centers in the telecommunications industry?
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    Data centers consume significant energy, contributing to Scope 2 emissions due to electricity usage and Scope 3 emissions through their supply chain. The carbon footprint varies based on size, location, and energy sources used.
  • What are the primary sources of emissions in data centers?
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    The main sources include electricity consumption (Scope 2), backup generators (Scope 1), and upstream activities like manufacturing and transportation of equipment (Scope 3).
  • How can renewable energy be integrated into data center operations?
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    Renewable energy can be integrated through direct procurement, on-site generation (e.g., solar panels), Energy Attribute Certificates (EACs),Power Purchase Agreements (PPAs), and Virtual Power Purchase Agreements (VPPAs).
  • What are carbon credits, and how can they assist companies in addressing residual emissions?
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    Carbon credits are tradable certificates or permits that represent the reduction or removal of one metric ton of carbon dioxide (CO₂) or its equivalent in other greenhouse gasses (GHGs) from the atmosphere. Companies can purchase these credits to offset the emissions they cannot eliminate through direct operational changes, known as residual emissions.
  • What are the financial implications of decarbonizing data center operations?
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    Decarbonization may involve upfront investments in renewable energy, energy-efficient technologies, and carbon credits, but it can lead to long-term cost savings, reduced regulatory risks, and enhanced brand value.
  • What are the latest technologies and innovations in decarbonizing data centers?
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    Emerging technologies include liquid cooling, AI-driven energy management, advanced battery storage for renewable energy, and modular data centers designed for energy efficiency and sustainability.
  • What are the best practices for transitioning to 100% renewable energy in data centers?
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    Best practices include conducting energy audits, sourcing EACs, signing PPAs and VPPAs, investing in on-site renewable energy, and engaging with utility providers to support grid decarbonization.
  • What is the impact of using renewable natural gas (RNG) in data centers?
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    RNG can replace conventional natural gas in backup generators and heating, significantly reducing Scope 1 emissions by utilizing a low-carbon alternative.
  • How can energy efficiency improvements contribute to decarbonization efforts?
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    Enhancing energy efficiency reduces electricity consumption, thereby lowering both operational costs and carbon emissions. Techniques include optimizing cooling systems, upgrading to energy-efficient servers, and implementing smart energy management systems.
  • What role do Power Purchase Agreements (PPAs) and Virtual Power Purchase Agreements (VPPAs) play in reducing carbon emissions?
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    VPPAs enable companies to finance renewable energy projects, securing renewable energy credits and reducing their carbon footprint without requiring direct delivery of electricity to their data centers.