Data centers have a climate problem on their hands

Data centers around the globe need to brace themselves for the climate events of the future—and the ones that are already here.

That’s according to a recent report by XDI, a physical climate risk data and analysis company, which examined the physical risk from different climate hazards for 8,868 data centers worldwide and deemed more than one-fifth of facilities (22.04%) at high or moderate risk. By 2050, XDI predicts that this proportion will increase to 26.73%.

Risky business. XDI’s findings are based on a “high-emission scenario,” a term used to describe a high-risk climate simulation where greenhouse gas emissions continue to increase with little intervention between now and the end of the century. The company describes high-risk facilities as those more likely to experience total or partial physical damage within their expected lifespan, and moderate-risk facilities as those that will experience higher insurance costs from climate hazard damage.

Examined hazards included forest fires, extreme wind, coastal inundation, tropical cyclone wind, freeze-thaw, soil movement, riverine flooding, and surface water flooding. Of the eight different climate change hazards, riverine flooding and coastal inundation (coastal flooding) were ranked as being very high levels of concern for data center infrastructure.

What goes around, comes around? The findings come at a time when data centers have a reputation for causing environmental damage. While big companies like Microsoft have begun to experiment with unique facility designs intended to cut down their carbon emissions, the impact of AI-fueled power demands on the environment remains a concern. Morgan Stanley research predicted the data center industry will emit 2.5 billion tonnes of greenhouse gas emissions globally between 2024 and the end of the decade.