Abstract

The IT sector has become a cornerstone of global economic development in the age of rapid technological advancements. Data centers, the critical infrastructure that supports this sector, have seen exponential growth. energy consumption, electronic waste generation, and carbon emissions. According to a report by the International Energy Agency (IEA), data centers worldwide consumed about 240-340 TWh of electricity in 2022, accounting for approximately 1% to 1.3% of global electricity demand. As the demand for data storage and processing power increases, so does the need for sustainable practices to mitigate the environmental impact of data centers and hybrid IT setups.

The pursuit of IT sustainability is not just a trend but a necessity driven by regulatory frameworks, corporate responsibility, and the urgent need to address climate change. This blog aims to provide a comprehensive overview of the EU EED that primarily governs IT sustainability, with a primary significant focus on data centers. By doing so, we can better understand the pathways to achieving a sustainable IT environment.

These standards and regulations play a crucial role in shaping organizations' environmental strategies, ensuring compliance with legal requirements and fostering a culture of continuous improvement and innovation in sustainability. From carbon accounting and emissions reduction to energy efficiency and green procurement, guidelines under EU EED provide a proper framework necessary for data centers to operate in an environmentally responsible manner. By adhering to the same, organizations can significantly reduce their environmental footprint, optimize resource use, and contribute to a more sustainable future.

Introduction

The rising climate crisis and the escalating global geopolitical turmoil is instigating customers to define their ESG policies to earn carbon credits and redefine their digital transformation initiatives. Sustainability has become a critical focus for IT organizations, as data centers and hybrid cloud infrastructure continue to consume vast amounts of energy.

According to Gartner, IT infrastructure and operations account for approximately 60% of energy consumption in many enterprises and are projected to grow as data demands increase.

The blog outlines key tenets around regulations and compliance, which provide a layer of governance for sustainability initiatives. It also offers insights into reducing carbon footprints, optimizing energy usage, and responsible management of e-waste while ensuring regulatory compliance. Finally, it illustrates how HCLTech, as a service provider, can help businesses achieve their sustainability goals through innovative solutions and expert guidance.

European Union energy efficiency directive for data centers

What is European Union energy efficiency directive (EU EED)? The EU Energy Efficiency Directive (EED) is a key policy framework in the European Union aimed at promoting energy efficiency across all sectors to reduce energy consumption, greenhouse gas emissions, mitigate climate change, and enhance energy security. Adopted in 2012 and revised in subsequent years, the directive sets binding measures and guidelines to encourage member states, companies, and individuals to use energy more efficiently. Revised in 2023, the directive sets a higher bar for industries like ours, especially in data center operations. These updates challenge us not only to innovate but to be more responsible stewards of energy.

Purpose: The EED was introduced to help the EU meet its 2020 and subsequent 2030 climate and energy goals. It is part of the broader EU Climate & Energy Package, which includes goals for reducing greenhouse gas emissions, increasing renewable energy use, and improving energy efficiency.

Target: The current EED sets an overarching energy efficiency target for 2030 to achieve at least a 32.5% improvement across the EU, with a possible future increase to 36% as part of the European Green Deal.

Who must follow this and the timelines?

• Member states: Required to transcribe the directive into national law and meet collective targets by 2030 
• Public authorities: Obligated to implement measures to reduce energy consumption in public services and buildings 
• Data centers: Facilities above a specific size threshold must report energy and water usage and adopt efficiency measures 
• Large enterprises: Mandated to conduct energy audits every four years

Key changes to the EED (2023) impacting data centers

1. Mandatory reporting: Data centers with a rated power of at least 500 kW must now report key energy performance metrics annually. This includes data on PUE (Power Usage Effectiveness), energy consumption, waste heat recovery, and renewable energy usage. This will drive transparency and allow stakeholders to monitor progress against sustainability targets. With data centers consuming an estimated 3.2% of the EU's electricity by 2030, reporting is critical for curbing future consumption. 
2. Waste heat utilization: One of the revised directive's most progressive aspects is the requirement for larger data centers (1 MW or more) to recover and reuse their waste heat, especially for district heating systems. For example, under Germany's new Energy Efficiency Act, operators must achieve 10-20% energy reuse rates by 2028, ensuring excess heat is repurposed rather than wasted. This measure aligns with broader EU goals to integrate data centers into the circular economy, reducing reliance on fossil fuels. 
3. Renewable energy integration: A renewed emphasis is placed on prioritizing renewable energy sources. The EED emphasizes the transition to renewable energy sources. Data centers must source 50% of their electricity from renewables by early 2025 and move to 100% latest by 2027. This effort can significantly lower the carbon footprint of our data centers and drive us toward a cleaner energy mix. 
4. Optimizing energy consumption: Data centers must adopt energy efficiency measures, such as optimizing cooling systems, upgrading to efficient IT equipment, and utilizing virtualization techniques. Efforts to lower PUE across all facilities are at the heart of the directive. While a PUE of 1.5 is required by 2027, many leading data centers, particularly those operated by hyperscale cloud providers, have already achieved this. These changes can reduce both energy usage and operational costs.

Implementation and compliance

1. National Energy Efficiency Action Plans (NEEAPs): Member states must develop and submit National Energy Efficiency Action Plans outlining their policies, measures, and progress towards achieving EED targets. These reports are typically required every three years. 
2. Monitoring and reporting: The European Commission monitors compliance, provides feedback, and suggests adjustments if targets are not being met. Member states must submit annual progress reports on the savings achieved.

Penalties for Non-Compliance: If countries/firms in a country fail to meet their obligations, the EU can impose penalties, and non-compliance can also trigger enforcement actions by the European Court of Justice.

Why choose HCLTech

The journey towards IT sustainability, particularly for data centers and hybrid setups, is both challenging and rewarding. The adoption of global standards, guidelines, rules, and regulations is essential for mitigating the IT sector's environmental impact. Through the implementation of frameworks such as ISO 14001:2015, the WEEE Directive, EPEAT certification, ENERGY STAR certification, the European Energy Efficiency Directive, ASHRAE guidelines, e-Stewardship, the EU Green Procurement Framework, and BICSI 009-2019, data centers can achieve significant improvements in environmental performance.

At HCLTech, we understand that achieving IT sustainability is not just about compliance—it's about creating value for businesses while reducing environmental impact. As a trusted partner in IT transformation, we bring cutting-edge solutions, proven frameworks, and industry expertise to help our clients align with global sustainability goals.

1. With decades of experience and a large number of certified sustainability champions managing hybrid cloud IT and data center operations, HCLTech is a leader in sustainable IT transformation. 
2. End-to-end sustainability services: HCLTech offers a comprehensive portfolio of services tailored to meet sustainability goals in hybrid cloud IT infrastructure and data center management. 
3. Compliance support: HCLTech ensures seamless compliance with regulatory frameworks like the CSRD, GHG protocol, WEEE Directive, ASHRAE guidelines etc., reducing the risk of penalties and reputational damage. 
4. Energy audits: Offer energy audit services to identify inefficiencies in hybrid cloud and IT infrastructure. 
5. Reduced operational costs: By improving energy efficiency, consolidating IT resources, and optimizing cloud usage, we help clients significantly lower their operational costs. Our services are tailored to meet specific client needs, industry requirements, and sustainability goals, ensuring maximum impact and ROI. 
6. Improved sustainable outcomes: We work hand-in-hand with our clients, understanding their unique challenges and co-creating solutions to achieve sustainable outcomes. Partnering with HCLTech contributes to better ESG performance, boosting investor confidence and brand reputation. 
7. Future-ready solutions: We invest in R&D and emerging technologies to offer solutions that are both future-ready and environmentally conscious. We enable businesses to modernize their IT infrastructure sustainably, leveraging cutting-edge technologies while minimizing environmental impacts.

Conclusion

These standards provide a structured approach to addressing key sustainability issues, including carbon emissions, energy consumption, electronic waste management, and green procurement. Following these guidelines, data centers can enhance their operational efficiency, reduce costs, and comply with regulatory requirements. More importantly, they can play a pivotal role in the global effort to combat climate change and promote sustainable development.

The path to sustainability is a continuous process of improvement and adaptation. It requires a commitment from all stakeholders, including management, employees, suppliers, and customers, to embrace sustainable practices and technologies. By fostering a culture of environmental responsibility, organizations can meet their sustainability goals and gain a competitive advantage in an increasingly eco-conscious market.

As we look to the future, integrating these standards and certifications into the operations of data centers will be crucial for creating a sustainable IT infrastructure. This holistic approach ensures that technological advancement goes hand in hand with environmental stewardship, paving the way for a greener, more sustainable world. Embracing these frameworks benefits the environment and enhances corporate reputation, operational resilience, and long-term profitability. In this era of digital transformation, sustainable IT practices are not just an option but a necessity for building a sustainable future for all.

To learn more, please write to us at HCBU-PMG@hcltech.com.