07/11/2024

How flexible are data centres?

The text on this page was automatically translated and hence may differ from the original. No rights can be derived from this translation.

On behalf of RVO and the Energy Top Sector, we conducted research into the role of data centres in the energy transition and their potential for energy flexibility. Flexibility in supply and demand is a crucial aspect of the new, more supply-driven energy system. Data centres, which consume large amounts of electricity, may contribute to grid stabilisation and reducing network congestion through energy flexibility. This research was carried out in collaboration with ENTRANCE and Pb7 Research, under the guidance of RVO, TSE, NCDD, and NLdigital. We explored all feasible opportunities for data centre flexibility and the obstacles for those options. Finally, we assessed the policy and collaboration needed to address these challenges.

Forms of Energy Flexibility for Data Centres

The report outlines the options for flexibility. Each option has its limitations, and there are several overarching hurdles. The possibilities for flexibility include:
  • Time Shifting: Moving workloads to times with more available sustainable energy.
  • Location Shifting: Transferring workloads to locations with cheaper and more sustainable energy.
  • UPS Systems: Utilising UPS system overcapacity for grid balancing, with some limitations due to bi-directionality constraints.
  • Backup Generators: These can be used for balancing services, especially when utilising more sustainable fuels.
  • Batteries: Providing various balancing services and aiding in congestion management.
  • Preventive Cooling: Additional cooling during excess energy to reduce cooling during scarcity later on.

Obstacles

Several obstacles reappear in many forms of flexibility, hindering the potential for flexible data centres:
  • Insufficient Price Incentives: Especially in saturated markets like FCR (Frequency Containment Reserve, the primary reserve capacity market on the grid).
  • Legal and Juridical Challenges: Not all contract forms are (yet) legally allowed, although this is expected to change rapidly in the near future.
  • Technical Limitations: For instance, with existing UPS systems and batteries.
  • Organisational Limitations: Lack of awareness and collaboration within the chain of involved parties.
  • Geographical and Spatial Discussion: Choosing between targeted reinforcement or strategic distribution of energy demand and supply.

Policy and Collaboration Recommendations

The current policy was also scrutinised, with the following brief recommendations:
  1. Scaling Up with Hyperscalers: These parties have the most potential for energy flexibility.
  2. Awareness Among End Users: Especially regarding sustainable ICT and energy flexibility.
  3. Innovation in the Chain: Further research and experiments on energy flexibility, such as HVO, hydrogen, and battery storage.