Data Centres: the Physical Form of the Cloud

Data centres are the hidden backbone of the digital world, silently powering everything from websites and apps to streaming services and cloud storage. Without these essential hubs, the Internet as we know it wouldn’t exist. Picture these facilities as vast, meticulously organized spaces where the world’s digital information—websites, apps, videos, and more—are stored, managed, and made accessible to everyone 24/7 without interruption.

Think of each piece of data like an item of clothing, and the data centre is the perfectly arranged closet where these "items" are stored, organized, and instantly retrieved when needed. Whether you're streaming a movie, checking your emails or accessing a file from the cloud, data centres ensure your digital "wardrobe" is always within reach, ready to be seamlessly and efficiently delivered at the click of a button.  
 

The Unseen Cost of Data on the World

The internet is often perceived as immaterial and environmentally harmless, but this assumption is far from accurate. In reality, the digital world has a significant, and growing, environmental footprint. A major contributor to this impact is the rapid expansion of data centers, which use large amounts of energy, water, and land, in addition to producing substantial Greenhouse Gas (GHG) emissions and E-waste.

• Energy Consumption:

  According to the International Energy Agency (IEA), data centres consumed approximately 240 to 340 terawatt-hours (TWh) of electricity worldwide in 2022, accounting for about 1 to 1.3% of global final electricity demand. Moreover, this energy consumption is projected to double by 2026. Most of the energy is used for two processes: cooling and computing [1].
  
  In 2022, in the EU, data centres consumed 45–65 TWh of electricity, 1.8–2.6% of total EU electricity use [2]. The EU's top four data centre markets are Germany, France, the Netherlands, and Ireland, which accounted for nearly two-thirds of the region’s data centre energy use, despite having less than 40% of the population [2]. Notably, Dublin stands out as the largest data centre hub in Europe and the third largest worldwide [3]. Ireland's low corporate tax rate, strategic location between the United States and Europe, cool climate for cost-efficient cooling, and fast-growing economy make it an ideal hub for data centres [4]. Consequently, Ireland faces significant challenges due to the high energy consumption of its data centres, making it a compelling case study for examining the potential impacts of unchecked data centre expansion.
  
  In 2023, data centres in Ireland accounted for 21% of the country's total metered electricity consumption, a significant increase from just 5% in 2015 [5]. These facilities now consume a larger share of electricity than urban households (18%) and more than twice that of rural households (10%) [5]. This trend is expected to continue as the number of data centres in Ireland is expected to grow by 65% with 14 data centres under construction and 40 approved to start the building phase [6]. The IEA estimates that in 2026, with the proliferation of AI, the sector could reach a huge share of 32% of the country’s total electricity demand [6]. This rapid increase in electricity demand poses significant challenges for Ireland's electricity grid and climate commitments, as electricity generation was already, in 2022, the sector with the second-highest share of energy-related CO2 emissions in the country [7]. Consequently, in early 2022, EirGrid, Ireland's electricity grid operator, imposed a de facto moratorium on connecting new data centres in the Dublin area until at least 2028 [8].

  
  
  
• Energy Waste:

  The main metric for energy efficiency is the Power Utilisation Effectiveness (PUE) which represents the ratio of total data centre energy consumption to total energy consumption of information technology (IT) equipment. The lower the PUE value, the higher the efficiency of the facility. The ultimate goal is a PUE of 1, indicating a perfectly efficient data centre where almost all power is delivered to IT equipment. However, currently, in the EU, the average PUE of a data centre is 1.6, with some still above 2 [9]. This means that the average data centre in the EU uses only 62.5% of the electricity it consumes to power IT equipment, the core function and primary purpose of the facility. The remaining 37.5% is diverted to supporting non-IT infrastructure, such as cooling systems, lighting, power distribution losses, and other auxiliary processes.
  
  However, even with a PUE of 1, a data centre would still experience significant energy losses. IT equipment consumes electricity during operation and releases heat as a byproduct. All the electrical energy used by a data centre's IT equipment eventually converts into heat. For instance, if a data centre with a PUE of 1 consumed 100 MW of electricity, it would also generate 100 MW of heat. Unfortunately, most data centres today simply release this heat into the atmosphere, resulting in substantial energy losses.
  
  

• Water Consumption:

  Global water consumption by data centres has risen significantly, increasing from 738 million litres per day in 2015 to over 840 million litres per day in 2021 [10]. This volume is equivalent to the daily consumption for domestic purposes such as drinking, cooking, cleaning, or washing of roughly 5.2 million Swiss citizens [11]. The surge is primarily driven by the growing demands of major technology companies. In 2021, Google’s global data centre fleet consumed approximately 16.28 billion litres of water, enough to fill 6,512 Olympic-sized swimming pools [12], [13].
  
  This substantial water consumption places significant strain on local supplies, reducing availability for nearby communities and risking overexploitation of local reserves, which may ultimately harm ecosystems. The problem is compounded when data centres are located in regions with scarce water resources. For example, in 2022, 23% of Microsoft’s and 18% of Google’s freshwater withdrawals occurred in water-stressed areas [10].
  
  

• E-waste:

  Data centres house a wide range of electrical and electronic equipment, including servers, batteries, routers, and other critical IT infrastructure. However, this equipment has a limited lifespan and, once obsolete, contributes to the escalating issue of e-waste. E-waste refers to any discarded electrical or electronic devices and their components that are no longer intended for reuse. As one of the fastest-growing streams of solid and toxic waste globally, e-waste presents significant environmental, health, and economic challenges. In 2022 alone, an estimated 62 million tonnes of e-waste were generated worldwide [14], [15]. Yet, only 22.3% was formally documented as collected and recycled, leaving approximately $62 billion worth of recoverable natural resources unaccounted for and increasing pollution risks to communities and ecosystems worldwide [14], [15].




• Land Use:

  Data centres come in all shapes and sizes. The average data centre occupies roughly 10,000 square meters; however, they can go up to several hundred thousand square meters [16]. Therefore, building data centres can have a significant impact on the landscape and local ecosystems.




• GHG Emissions:

  In 2020, data centres and data transmission networks were responsible for roughly 1% of global energy-related GHG emissions [17]. Data centres in particular were responsible for 126 million tonnes of CO2 in 2020, three times more than Switzerland’s yearly GHG emissions [18], [19]. However, the amount of GHG emissions generated by a data centre greatly varies from one to another based on the design of the centre as well as the source of electricity. Nevertheless, to get on track with the net-zero emissions (NZE) scenario, emissions must halve by 2030 [17].
  
  There is a growing demand for public entities to establish and achieve ambitious environmental goals, particularly concerning the reduction of GHG emissions. The EU has committed to reducing GHG emissions by 55% by 2030 compared to 1990 levels and achieving net-zero emissions by 2050, under its European Green Deal framework [20], [21]. Similarly, Switzerland has set a target to reduce GHG emissions by at least 50% by 2030 relative to 1990 levels, and it aims to reach net-zero emissions by 2050, in alignment with its updated CO2 Act and Paris Agreement commitments [22]. The rapid expansion of the data centre industry poses a significant challenge to achieving these decarbonization objectives. Not only because data centres directly emit significant GHG emissions, currently accounting for roughly 1% of global emissions, but also because of their energy-intensive nature [17]. The reliance of data centres on a constant and reliable power supply complicates the integration of intermittent renewable energy sources like wind and solar. Data centres require uninterrupted power to maintain operations, which can lead to increased dependence on fossil fuel-based backup systems when renewable energy availability fluctuates.

Infomaniak: Innovating for an Ethical Cloud

Infomaniak has been and continues to be a pioneering force in the design and development of sustainable data centers. Despite often being viewed as the underdog, the company has risen to become Switzerland’s largest web hosting provider by consistently innovating and adapting to industry demands.

The Start

Everything started with the creation of an IT club in Geneva in 1990, by a self-taught computer enthusiast called Boris Siegenthaler. In 1994, Boris partnered with another tech passionate Fabien Lucchi and opened the shop “Siegenthaler & Lucchi, Infomaniak” where the pair sold computers they had built themselves. At the time, the personal IT market was in rapid expansion and the main companies were selling their products with very high margins. The duo realised that by buying the components of computers individually, they could then assemble and sell computers at competitive prices. Ever since the start, going against the industry giants to offer the best product possible at competitive prices is at the core of Infomaniak. As stated by Boris: "It's in our DNA to offer what is best in terms of technology and performance." 

The Game Changer

Near the end of 1994, the two shop owners were invited to attend a conference at a certain school in Lausanne, called EPFL, on an emerging technology, which you may have heard of: the Internet. It was a revelation for the two men, which soon after purchased an internet line connecting their shop in Geneva to a company in Zurich. As a result, Infomaniak became the first privately owned Internet service provider in the canton, with only CERN and the University of Geneva preceding it. However, instead of taking advantage of being a monopoly, the company decided to offer the access to internet to anybody who would buy a computer in their shop, with no time limit. In contrast, the only other private company offering internet access to Geneva charged CHF 150.- per month! However, enabling access to the internet for free to so many people was a major investment, which was not easy to maintain. In fact, at the time, many employees, including Boris himself, were working without pay. This exemplifies an important aspect of Infomaniak that persists to this day, it is a company made up of people who are passionate about tech and motivated to achieve more than simply making a profit. Nonetheless, in 1997 it was decided that a new company should be created, one that would be dedicated to providing internet access and email addresses, and thus TWS Infomaniak SA was born. All available resources were dedicated to acquiring the necessary equipment to offer high-quality internet access at a very attractive price. This was achieved for CHF 69 per year, while competitors were charging CHF 500 to CHF 1,500 per year.

The Transition to Web-Hosting

In 1999, TWS Infomaniak was restructured as Infomaniak Network and started transitioning away from internet subscriptions towards web hosting services for private users and small to medium-sized enterprises. This shift was in part because, in early 1998, Switzerland ended its state monopoly on telecom services, allowing new providers to enter the market, notably Sunrise which began offering free internet access. This change in strategy was successful, as by 2003, Infomaniak was the largest web-host in Western Switzerland. Today, Infomaniak is the largest web-hosting company in Switzerland, with over a million users and 200 employees, with 70% of staff in R&D, thus ensuring the company continues to push the boundaries through innovation.

Pioneers in Sustainability

According to Boris: “The meaning of life is to accomplish lasting things, at least for a business.” This philosophy translated into actions as early as 2007, when Infomaniak created and launched its sustainability charter. Here are some examples of commitments that the company continues to respect to this day: reduction of energy consumption through the use of low-energy equipment and 100% renewable energy; compensation of greenhouse gas emissions by implementing a corporate mobility plan for employees and obtaining MyClimate certification; responsible waste management and recycling, including the refurbishment and recycling of electronic equipment, as well as sorting, recycling, and recovery of other company waste. Additionally, there is a focus on sustainable purchasing and subcontracting, such as choosing low-energy servers and electronic equipment, using recycled paper, and opting for eco-friendly cleaning products. Finally, social and financial investments include financing eco-friendly transport for employees and subscribing to ethical and ecological provident funds like Nest.

D3

In 2014, Infomaniak opened its third data center: D3. This data center was revolutionary, the most sustainable data center in Switzerland. It used 100% renewable energy and low-voltage technologies. Furthermore, Infomaniak developed a natural method to cool down servers that meant they did not have to use artificial air conditioning which enabled D3 to achieve a record low 1.1 PUE, which meant the data center was incredibly efficient. This low PUE won the company the Geneva sustainability prize. D3 is still in operation and remains much more sustainable than most current data centers. The average PUE in the EU is still as high as 1.6. However, at this point, it will come as no surprise that being better than the norm isn’t good enough for Infomaniak. As stated by Alexandre Patti, a compliance officer at Infomaniak: "We cannot save the world by following the current rules, because the rules need to be changed. Everything must change, and it must start today." Therefore, Infomaniak pushed further and thought about how to create a data center even more sustainable than D3. And one answer came out. D3, just like most other data centers had a major flaw: the significant amount of heat it generated was released and thus wasted in the atmosphere. To rectify this flaw Infomaniak started working on a new, more sustainable and even more revolutionnary data center: D4.