Kao Data has renewed its renewable electricity supply agreement with Shell Energy, extending a relationship that has helped the data centre operator match its energy use with UK-based renewable generation.

Since 2022, Shell Energy has supplied Kao Data with around 140 GWh of electricity each year, matched with generation from renewable assets in the UK. From 2025, that has included initial output from Dogger Bank, one of the world’s largest offshore wind farms currently under construction.

Kao Data’s decision to extend the deal comes amidst continued pressure on the industry over its electricity demand, particularly as AI and advanced computing workloads continue to increase. That has led some operators to consider alternatives to gaining an electricity connection over just relying on the grid – that includes securing private-wire agreements with renewable energy developers. 

The industry is also facing greater scrutiny for its impact on the environment. For its part, Kao Data says that agreements, such as the one with Shell Energy, enable it to ensure all energy consumed across its facilities is matched with UK-based renewable generation.

Kao Data was also the first UK data centre operator to move its backup power systems to hydrogenated vegetable oil fuel, which it says reduces lifecycle emissions by up to 90% compared to traditional diesel.

James Lewis, Investment Director at Kao Data, noted, “At Kao Data, sustainability is embedded in everything we do and developing strategic relationships remains critical to help us achieve our goals. 

“Our collaboration with Shell Energy has been instrumental in shaping our long-term energy management and decarbonisation strategy. Extending this relationship enables our customers’ electricity demand to be matched with certified renewable generation from UK-based sources, reinforcing our commitment to become carbon-neutral by 2030.”