Sustainability in Data Centers

Sustainability has become a hot topic in the data center industry, but are we truly making progress? While many conversations revolve around building greener facilities with energy-efficient technologies and reusable materials, there’s another critical aspect that often gets overlooked: sustainability in operations.

This article focuses on this operational side of sustainability. And to be honest, as an industry, we could do much better.. The rapid growth of hyperscale data centers has driven innovation, but it has also led to a short-sighted approach, one that prioritizes speed and efficiency over long-term sustainability.

The Challenge: Sustainability vs. Scale

The biggest players in the industry like Microsoft, AWS, Google, Meta, Oracle, and other hyperscalers have the resources and bandwidth to invest in sustainable operations. From reducing carbon footprint to implementing reusable packaging, these companies are making strides.

But what about the second-tier market? These companies rely heavily on their hyperscaler tenants to lead the charge in sustainability. Right now, for many, sustainability is just a marketing buzzword. If an initiative affects their bottom line, they tend to shy away. To make real progress, we need a renewed commitment, not just in words, but in action.

AI, Machine Learning, and the Rapid Pace of Change

One of the biggest challenges to sustainability in operations is the speed at which technology evolves. AI and machine learning are accelerating advancements, and we’re moving from AI adoption to AI inference at a breakneck pace. This makes it difficult to standardize sustainability efforts.

Take reusable packaging, for example. Suppose we design sustainable packaging for a critical component, like a motherboard. That motherboard may become obsolete in just 16 months. Because of this rapid turnover, many companies don’t even consider sustainable packaging. Their mindset is, “Why worry about it if it’s going to change soon anyway?”

But here’s how we should be thinking instead:

• Plan for multiple generations of components, not just one.
• Design packaging solutions that work across multiple product lifecycles.
• Consider the entire supply chain, from manufacturing to recycling.

A Case Study: Rethinking Server Rack Packaging

Let’s look at server racks as an example. The current process is far from sustainable:

1. Manufacturers ship racks in wooden crates or cardboard boxes.
2. Integrators (who install servers into racks) often repackage them in another crate.
3. Data centers receive the racks, and the packaging ends up in a landfill.

While some crates are reused, many are damaged or discarded. Instead, we should adopt a reusable packaging model that follows the rack through its entire lifecycle:

• The same packaging is used from manufacturing to integration to deployment.
• When the rack reaches the end of its life, it’s packaged in the same materials for recycling.
• The empty packaging returns to the original manufacturer for reuse.

This closed-loop system minimizes waste and reduces costs in the long run.

The Financial and Environmental Impact of Reusable Packaging

One of the biggest roadblocks to sustainability is the perception of cost. Many companies resist sustainable solutions because they seem expensive upfront. But when viewed over time, the return on investment (ROI) is clear.

Take battery backup unit (BBU) packaging as an example:

• Before switching to reusable packaging, an OEM spent $92 per pallet to ship BBUs to data centers.
• With reusable packaging, the cost is spread over multiple shipments, saving money in the long run.

Reducing Carbon Footprint with Recycled Materials

Another key strategy is incorporating recycled materials into reusable packaging. When applied to battery backup unit packaging, this approach led to an 87% reduction in carbon footprint. Why?

• A major source of emissions comes from producing new aluminum.
• By using recycled materials, we eliminate a large portion of those emissions.

Beyond carbon savings, using recycled, reusable packaging minimizes landfill waste and extends the life of materials, making the financial payback period measurable in weeks and months, not years.

Shifting the Mindset: Looking Beyond Short-Term Gains

For sustainability efforts to succeed, the industry must stop prioritizing short-term profits over long-term benefits. Yes, sustainable solutions may not deliver immediate cost savings, but the benefits over months and years are undeniable.

It’s time for data centers and colocation operators to move beyond the marketing buzz and commit to real, measurable change. By focusing on reusable packaging, planning for product lifecycles, and leveraging recycled materials, we can build a more sustainable future, without compromising efficiency or profitability.

Sustainability isn’t just an idea, it’s a necessity. And the time to act is now.

Want to learn more about this topic? Watch this video with Americase Senior Solutions Architect Joel Chakkalakal on the Americase YouTube channel.