The UK’s data centre sector is experiencing rapid growth, but it must also address rising emissions. George Hudson, UK Business Development Manager for GoNetZero, considers how the industry can tackle these challenges.

The surge in digitalisation, supercharged by AI, is driving record levels of computing and data storage. This is a time of unprecedented global demand for data centres. Goldman Sachs projects that AI alone could drive a 165% surge in global data centre power demand by 2030. In the UK, annual demand could hit 71TWh by 2050 – just shy of the current electricity consumption of the entire county’s industrial sector.

This increase in power consumption means carbon emissions are also going up. The International Energy Agency warns that data centres are already among the fastest growing sources of global emissions. It outlines a possible scenario where data centres could see the largest emissions growth of any sector by 2030.

The risk to net zero

Data centres are now critical to the UK economy – powering everything from healthcare systems to transport networks. Their economic footprint is estimated at around £4.7 billion. In September 2024, the UK government designated data centres as Critical National Infrastructure, placing them on par with energy, water, and emergency services.

However, alongside growing recognition of the strategic importance of data centres, there is increasing concern about their environmental impact. According to a report by Global Action Plan, just 10 of the largest data centres currently planned or under construction in the UK are estimated to emit a combined 2.75 million tonnes of carbon dioxide annually – nearly equivalent to the carbon savings expected in 2025 from the switch to electric vehicles.

As scrutiny intensifies, operators will be expected to demonstrate accountability for their carbon footprint. This pressure would come from regulators, investors, business partners, media, and the wider public. Improving energy efficiency is the natural starting point – but in a sector built on high-performance computing, there are limits to how much energy use can realistically be reduced.

Cleaning up your sources

If reducing consumption is not possible, the next step is to clean it – by getting as much electricity as possible from renewable sources.

Many operators are already doing this, either by switching to green tariffs or by investing in on-site generation. But when your power comes through the grid, how can you verify if it is clean, and how do you reflect that in your carbon reporting?

One widely used tool is the Energy Attribute Certificate (EAC), which certifies that each megawatt-hour (MWh) of electricity has been generated from a renewable source. Many data centres buy enough EACs to match their annual consumption, then report that their energy usage is covered by renewables.

Annual reconciliation of power and certificates is an established way of reporting renewables consumption. However, it does not reflect when the energy was used versus when it was generated – just that it evens out over the course of a year. Over time, stakeholders may expect more detail than annual matching alone can provide.

A move toward 24/7 carbon-free energy hourly matching

One emerging approach is 24/7 carbon-free energy (CFE) hourly matching. It aims to provide a more precise view of consumption by aligning electricity use with clean generation over shorter time periods.

Every 1MWh of renewable energy can be linked to a digital token, which can then be allocated to a business’s energy use on an hourly or even sub-hourly basis. The result is a more granular picture of consumption patterns. 

As of October 2025, the Greenhouse Gas (GHG) Protocol launched public consultations to gather feedback on proposed updates to its Scope 2 guidance and a consequential accounting method for the electricity sector, as part of a broader effort to update the Protocol’s corporate standards. 

The proposed Scope 2 updates include changes to both location and market-based methods, such as hourly matching and deliverability requirements, aimed at improving accuracy, transparency, and alignment with evolving energy systems and disclosure frameworks.

What more granular data enables

Breaking energy data into smaller time intervals can support more meaningful reporting. It can also help operators understand when demand is highest and explore opportunities to shift certain activities to periods of higher renewable generation – for example, charging batteries when solar or wind output peaks.

There are various ways to implement hourly matching, including the use of blockchain technology to issue and track digital tokens. Each token can include metadata about where and when the electricity was generated, creating an audit trail for reporting.

Futureproofing

Tech giants like Amazon and Microsoft were early adopters of hourly matching. In today’s context, the implications may be significant for smaller firms too, especially those without the means to invest in on-site renewables. 

Historically, one way to increase confidence in renewable supply was to have a direct connection to a solar or wind generation plant on your own site. Digital approaches may offer another route to improve assurance without needing physical infrastructure.

This capability is becoming more valuable as regulatory expectations increase. More transparent, time-based carbon reporting can help with compliance requirements and respond to growing stakeholder demand for credible sustainability data.

As the data centre sector continues to expand, rising demand does not have to come at the cost of rising emissions. With tools such as 24/7 CFE hourly matching (and other measures to improve efficiency and increase renewable supply), operators can work to grow capacity responsibly while staying aligned with the clean energy transition.