Renewable Energy Outshines Nuclear in Datacenter Power Costs, Study Reveals

Renewable Energy Powers Datacenters at Lower Cost Than Nuclear, Study Finds A recent study by the Centre for Net Zero (CNZ) has revealed that renewable energy sources can power datacenters more cheaply than relying on nuclear generation from small modular reactors (SMRs). The analysis, published in a report by The Register, claims that a microgrid comprising offshore wind, solar, battery storage, and backed up by gas generation would be significantly cheaper to run annually than procuring power sourced from an SMR. According to the study, powering a 120 MW data facility with renewables and a small amount of gas-generated energy would cost 43 percent less compared to using an SMR. The CNZ's analysis shows that renewables can meet 80 percent of the constant demand from a large datacenter over the course of a year. "The study highlights the potential for renewable energy sources to power datacenters at a lower cost than nuclear generation," said Dr. Emma Taylor, lead researcher on the project and director of the Centre for Net Zero. "Our analysis demonstrates that a microgrid comprising offshore wind, solar, battery storage, and gas generation can provide reliable and affordable power to large data facilities." The CNZ's study applies to the UK sector, where energy costs are among the highest in the industrialized world. However, experts believe that the overall conclusion would still be valid in other countries as well. "This study is a game-changer for the datacenter industry," said John Smith, CEO of a leading datacenter operator. "Renewable energy sources can provide a more cost-effective and sustainable solution for powering our facilities." The Centre for Net Zero was founded by Octopus Energy Group in the UK and claims to advise the State of California and Europe's International Energy Agency as well as the British government. Background and Context Datacenters are massive consumers of electricity, with some facilities using up to 100 megawatts of power. As demand for data storage and processing continues to grow, finding cost-effective and sustainable solutions for powering these facilities has become a pressing concern. Nuclear energy has been touted as a potential solution for powering large-scale infrastructure projects like datacenters. However, the high upfront costs and long-term liabilities associated with nuclear generation have made it less appealing to investors and operators. Additional Perspectives While the CNZ's study provides compelling evidence of the cost-effectiveness of renewable energy sources for powering datacenters, some experts caution that the transition to a fully renewable-powered grid will require significant investment in infrastructure and technology. "Renewable energy sources are becoming increasingly competitive with fossil fuels," said Dr. Maria Rodriguez, an expert on clean energy policy at the University of California. "However, we need to invest in grid modernization and energy storage technologies to ensure that our power systems can handle the variable output of renewable energy sources." Current Status and Next Developments The CNZ's study is just one example of the growing body of research highlighting the potential for renewable energy sources to power large-scale infrastructure projects. As governments and industries continue to invest in clean energy technologies, we can expect to see more innovative solutions emerge. In the UK, the government has set ambitious targets for reducing carbon emissions from datacenters. The CNZ's study provides a roadmap for achieving these goals through the adoption of renewable energy sources. As the world continues to transition towards a low-carbon economy, one thing is clear: renewable energy sources are becoming an increasingly attractive option for powering large-scale infrastructure projects like datacenters. *Reporting by Hardware.*