How IT leaders can remain sustainable in their data centre practices

Julia Hinwood at the Clean Energy Finance Centre highlights a partner’s important role in promoting sustainability.

IT channel leaders have an important role to play in influencing sustainable procurement standards, siting choices, and customer expectations, according to Julia Hinwood, head of infrastructure at the Clean Energy Finance Corporation.

Speaking to CRN Australia, Hinwood highlights how partners can remain sustainable in their data centre practices.

“By embedding time-matched clean energy, firming and flexibility, and efficiency requirements into their offers and RFPs, the channel can accelerate the required clean buildout our report calls for, and help operators maintain social licence as demand grows,” she said.

As data centre use continues to climb, so too does electricity use and emissions. In a recent CEFC report, it forecasts that data centres could represent up to 11 percent of Australia’s total electricity consumption by 2035, up from about 1 percent today.

Driven by artificial intelligence, cloud computing and digital infrastructure demand, the sector is expected to attract between $85 billion to $135 billion in investment and grow capacity fourfold within a decade, the report noted.

Hinwood said IT channel leaders can focus on maintaining social licence to operate by demonstrating credible clean energy procurement, high water and energy efficiency, and transparent emissions reporting.

"While many major global AI and data centre players have set strong clean energy goals, their Australian operations need to match load with local clean supply, not just certificates purchased elsewhere,” she noted.

As Australian data centres could use up to 11 percent of national electricity use by 2035, Hinwood noted that additional renewable and storage buildout is “essential” to manage price and emissions impacts.

Hinwood highlighted several actions partners can take to be sustainable in their data centre practices.

“IT channel leaders can prioritise innovation to improve efficiency and cut fossil backup by setting minimum PUE targets, adopting liquid, direct-to-chip, or immersion cooling technologies, enabling workload flexibility, and exploring emerging cleaner backup options like renewable diesel, hydrotreated vegetable oil, biomethane, and hydrogen fuel cells,” she said.

“Close coordination with customers is also vital—aligning ESG requirements, load flexibility options, and reporting standards across co-located tenants and hyperscale customers.

“Finally, meeting minimum operational standards through robust due diligence and reporting, such as achieving 5-star NABERS ratings for facilities serving government workloads, is essential."

Partners can also influence data centres in their sustainability journey.

“IT channel leaders can pull practical levers through procurement and customer advice,” Hinwood said.

"Leaders can underwrite additional clean energy by requiring vendors and operators to use additional renewable generation through PPAs, not just market-average certificates,” she said.

“This can be boosted by incentivising grid-scale or behind-the-meter storage and encouraging VPP participation to monetise flexibility and support the grid when feasible.”

Other levers include lifting efficiency standards, cutting diesel use for a cleaner backup and time-matched clean energy roadmaps.