We’re entering the intelligent age, where technologies like AI and the internet of things (IoT) are driving groundbreaking advancements across industries. Alongside these data-driven, power-consuming innovations, there’s growing demand for energy to power not just technology but also manufacturing, transportation and residential needs. Global electricity demand is forecast to reach 31,000 to 36,000 terawatt-hours (TWh) by 2030, and then to roughly double to between 52,000 and 71,000 TWh by 2050.[1] As energy demand increases, we have an opportunity and mandate to build reliable, sustainable, scalable energy infrastructure that can support our collective future.
Across the globe, we’re in the midst of an energy transition. Renewable energy sources accounted for 30% of global electricity generation in 2023; this is expected to increase to 46% by 2030.[2] To meet growing demand from industrial, commercial and residential users, renewable energy capacity needs to increase dramatically over the next several years. Scaling renewable energy generation quickly comes with many challenges and will require significant investment and commitment from governments and industry leaders.
Numerous factors are driving up the demand for electricity:
- The electrification of everything, from transportation to buildings to industry
- The need to replace aging infrastructure and grow it for collective use
- Increasing use of AI and other high-performance computing capabilities, leading to data center densification
Meanwhile, the energy grid has struggled to keep pace with growing electricity needs.[3]
We’ll need to collectively unlock additional energy capacity faster to support the world’s electricity needs and ensure future grid stability. Equinix and global leaders are leaning forward to meet this challenge. Because data centers provide essential infrastructure for the digital economy, we play an important role in addressing energy constraints globally. Powering data center facilities into the future is a complex challenge that we must tackle from several angles. We’ll need to invest in new energy generation, explore alternative power sources, improve data center efficiency and adapt the way data centers interact with the grid. Ultimately, we can evolve data centers to be assets that contribute to the stability of the global energy grid and society at large.
Expanding renewable energy procurement and on-site generation
According to a study from the International Energy Agency (IEA), the energy consumption of data centers is expected to rise significantly in the coming years, reaching 3% to 4% of global electricity use by the end of the decade.[4] To support the energy needs of our industry, as well as our customers and the world more broadly, we’ll need multiple energy sources and approaches to strengthening the grid. Currently, only about 10% of the low-emissions technologies needed by 2050 to meet global commitments have been deployed.[5] So, there’s a lot of work to do building new assets and energy infrastructure.
Equinix is committed to sourcing 100% clean and renewable energy across our global portfolio by 2030. We seek new sources of power generation, procure renewable energy locally where possible and factor in its availability for new data center locations. We’ve already achieved 96% renewable energy coverage globally and have 250 sites with 100% renewable energy coverage.
To meet our goals, we’re scaling our use of renewable energy with an emphasis on power purchase agreements (PPAs)—long-term contracts between buyers and renewable energy developers to purchase electricity at predetermined prices. We have 1.2 GW of PPAs under contract for solar and wind projects today. In 2024 alone, we executed 370 MW of these PPAs.
Solar installations also play a valuable role in decarbonizing data center operations and adding new generation capacity to local grids. While it isn’t possible to generate sufficient energy for our data centers from on-site solar projects alone, they’re an important part of Equinix’s overall renewable energy strategy. We’ve installed solar arrays at sites across South America, Europe and Australia, with a total capacity of 6 MW globally.
Solar installation at an Equinix facility in Mumbai, India
Exploring alternative power and fuels
Powering a sustainable future also requires us to investigate new, alternative sources of power. Fuel cells, for instance, can generate electricity more efficiently than traditional combustion technologies by directly converting chemical energy into electrical energy without combustion. Combustion-based power plants typically generate electricity at efficiencies of around 35%, while fuel cell systems can generate electricity at efficiencies of up to 60%.[6] Fuel cells therefore offer significantly lower emissions and avoid embedded water use as well as the benefit of zero nitrogen oxides or particulates.
Equinix has deployed 72 MW of fuel cells globally, with 104 MW of total fuel cells contracted. These fuel cells accept up to 50% hydrogen, enabling us to avoid 285,000 MTCO2e emissions and 382 billion gallons of embedded water use.
Hydrotreated vegetable oil (HVO) is an alternative fuel that has potential to serve as an energy source for backup power generation in data centers. In 2024, Equinix tested HVO, which can offer up to a 90% net CO2 reduction, as a drop-in replacement for conventional diesel in backup generators. We’re now piloting the use of HVO within the London, Paris and Frankfurt metros.
Improving data center efficiency
Energy innovation isn’t just about power generation sources; it’s also about maximizing efficiency to reduce electricity use. With the rise of AI, data center size and density are increasing, and cooling systems account for a substantial portion of our total energy consumption. Fortunately, cooling technologies are evolving quickly. Equinix is exploring various advanced cooling methods like direct-to-chip liquid cooling to boost energy efficiency in our facilities.
We’re also improving data center efficiency by operating facilities at wider temperature ranges: Since 2022, we’ve phased in ASHRAE A1 Allowable (A1A) standards at sites across our global portfolio, enabling flexibility to run at higher temperatures to save energy, without compromising processing power or the safety of the operating equipment. For example, in 2024, all Equinix data centers in the Netherlands have updated contracts with customers to allow for A1A standards. As the new temperatures roll out at these sites in 2025, we expect the initiative to support reduced power usage effectiveness (PUE), a standard metric for measuring how efficiently data centers use energy. This will help both Equinix and our customers prepare to address emerging regulatory requirements in the country.
Infrastructure placement also plays a role in energy efficiency. For enterprises, consolidating disparate IT equipment that may be located on-premises at an enterprise location into a colocation facility can be advantageous. Data center operators have the economies of scale to invest in energy innovation and efficiency improvements more effectively than individual companies typically can. Research from the Uptime Institute indicates that larger, newer facilities, such as colocation data centers, can achieve PUE values that are better than smaller on-premises data centers.[7]
Uniting forces to achieve energy efficiency
The challenges that lie ahead for powering the intelligent age will require collaboration and innovation from data center operators, utility providers, industry associations, governments, hardware manufacturers and many others. These partnerships will be essential to create the resilient, sustainable energy infrastructure the world needs.
At Equinix, we’re partnering with our customers on achieving their sustainability goals and collaborating with peers to drive collective action around energy innovation. We’re a member of the Clean Energy Buyers Association (CEBA), a trade association working to advance low-cost, reliable, carbon emissions-free global electricity systems, and have led workshops on renewable energy procurement. We’re also involved with the European Union Data Center Alliance (EUDCA) policy working group, and we’re a founding member of the Asia-Pacific Data Center Association (APDCA). We played a key role in the ISO/IEC 30134-2 power usage effectiveness review in 2024, contributing our expertise with PUE to help update and improve existing best-practice guidance. Partnerships like these will continue to be crucial as we seek ways to scale renewable energy and stabilize the grid.
The future of data center energy
A lot more energy innovation is on the horizon, such as nuclear energy production via small modular reactors (SMRs) that are simpler and safer than prior generations of reactors. While SMRs aren’t widely used in data centers yet, the idea is gaining traction, and Equinix is monitoring advancements in nuclear technology to align with our power needs and sustainability goals. In 2024, we agreed to procure 500MW of energy from the nuclear technology company Oklo. This makes us the world’s first data center operator to secure an agreement with an SMR company.
As we move into the future, data centers will continue to provide crucial infrastructure for the digital economy. While there are uncertainties about the energy requirements of AI, there are steps enterprises can take to deploy AI solutions without derailing sustainability efforts. With innovation and investments in a wide variety of power generation technologies, data centers have the potential to shift from being energy consumers to being grid assets. To meet the energy requirements of a tech-driven future, it will be crucial to continuously invest in emerging technologies to stay ahead of the clean energy transition.
Equinix is committed to being a part of creative solutions that help address the world’s growing energy needs and deliver on our customers’ sustainability requirements. Learn more about our role in energy innovation in our latest sustainability report.
[1] Global Energy Perspective 2023: Power outlook, McKinsey & Company, January 16, 2024.
[2] Renewables 2024: Global Overview, International Energy Agency, October 2024.
[3] Electricity Grids and Secure Energy Transitions, International Energy Agency, October 2023.
[4] Energy demand from AI, International Energy Agency, April 2025.
[5] 25 tech and infrastructure problems to solve before we can reach net zero, McKinsey & Company, November 22, 2024.
[6] Fuel Cells Fact Sheet, U.S. Department of Energy.
[7] Global PUEs: Are they going anywhere? Uptime Institute, December 4, 2023.
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