Recently we have seen a lot of activity around the energy efficiency of data centers. Differentiating data center and co-location offerings using green electricity procurement is on the rise. A lot of schemes have emerged, like green power certificates (e.g. GoOs) or 24/7 matching of green electricity production with data center power consumption. Which is a good first step, but doesn’t solve it all. The implementation of flexible power consumption (demand-response) is critical for the development of the future energy system.

The technical solutions, from energy storage, to adaptive cooling systems are increasingly available. Most of them struggle with increased capital costs for the data center, while not delivering matching additional revenues, e.g. by providing grid services or energy market optimizations (intraday, day-ahead). Further, it comes with a perceived risk to the availability-driven business model and service-level agreements of most data centers today.

Within this steering group we aim to unlock the business case for additional investments in demand-response enabled electrical and cooling infrastructure, by showcasing potential revenues or cost savings as well as analyzing required incentives and barriers for developing demand-response-capable data centers.

• Financial modeling: Modeling business cases and financial models for additional revenues opportunities across markets,
• Lobbying and policy work: Developing policy strategies, incentive schemes and KPIs for governments to encourage demand-response in data centers,
• Communication & events: Educating the market of operators, owners and investors of data centers as well as policy makers on the potential of demand-response,
• Capital investment model: detailing how additional investment costs in infrastructure (energy storage, adaptive cooling systems, control systems) are earned back through demand-response services,
• Risk analysis and cost-benefit models: Evaluate and verify the risks for data center owners & operators from demand response and create supporting research papers, mitigation strategies and documentation,
• Sustainability assessment: Work on quantifying the carbon-emission impact of participating in demand-response schemes, and the environmental, socioeconomic and business impacts,
• Link to foster new collaborations between infrastructure vendors, operators and energy utilities in our other steering group:Business model of highly available power as a service.

• Fresh, independently verified documentation on benefits and risks associated with demand-response for your customers,
• Insights into the additional benefits your products can provide by contributing the capabilities of your energy storage, cooling, software and electrical infrastructure products to the financial modeling,
• Understanding of the requirements to unlocking additional revenue and value for demand-response enabled products & solutions in your portfolio,
• Ability to support the lobbying for data centers participation in demand-response schemes by creating the incentives needed,
• Verification of the positive environmental impact that data centers gain from participating in demand-response schemes in comparison with the existing certificates and power purchase agreements

• Manufacturers of UPS systems are increasingly capable of implementing value-added services into their products, such as ancillary services.
• Data center operators are risk-averse and are not able to utilize the additional features of modern UPS infrastructure – nor are they willing to make additional investments.
• Energy companies, such as utilities and TSOs/DSOs, are increasingly under pressure to deliver new business models, moving beyond power-as-a-commodity, while adding renewable power capacity and storage/flexibility to the energy system. Data centers present a unique opportunity of a highly-energy intensive business, with existing storage and power load adjustment potential.
• For data centers to become truly carbon-neutral, they need to consume real physical green electricity, which is only possible if they adjust to the volatile production of renewable energy.