Oct 1, 2025
Green energy microgrids provide a more affordable and quicker way to power data centers.
The Centre for Net Zero (CNZ) has called on the government to focus on renewable microgrids instead of nuclear small modular reactors (SMRs) as a more cost-effective and quicker way to meet energy demands of data centres.
The UK has 523 data centres, with at least nine more in development. CNZ's analysis suggests that renewable microgrids could fulfill most of these facilities' electricity requirements while contributing to Clean Power 2030.
These microgrids, which operate on renewable energy and battery storage, can function independently from the national grid.
CNZ's modeling indicates that a microgrid combining offshore wind, solar, battery storage, and gas support would be 43.4% cheaper to operate annually compared to sourcing power from a nuclear SMR.
Even without solar power, costs were still 42.1% lower than the nuclear option.
A microgrid with 95% renewable energy and gas backup was estimated to cost nearly a third less than SMRs.
CNZ highlighted that renewables could provide 80% of the annual energy needs for data centres, with gas bridging the gap until battery prices decrease and renewable capacity increases.
With data centre capacity expected to reach 6.3GW by 2030, CNZ emphasizes that prompt decisions are essential for ensuring energy security and supporting digital growth.
The UK has 523 data centres, with at least nine more in development. CNZ's analysis suggests that renewable microgrids could fulfill most of these facilities' electricity requirements while contributing to Clean Power 2030.
These microgrids, which operate on renewable energy and battery storage, can function independently from the national grid.
CNZ's modeling indicates that a microgrid combining offshore wind, solar, battery storage, and gas support would be 43.4% cheaper to operate annually compared to sourcing power from a nuclear SMR.
Even without solar power, costs were still 42.1% lower than the nuclear option.
A microgrid with 95% renewable energy and gas backup was estimated to cost nearly a third less than SMRs.
CNZ highlighted that renewables could provide 80% of the annual energy needs for data centres, with gas bridging the gap until battery prices decrease and renewable capacity increases.
With data centre capacity expected to reach 6.3GW by 2030, CNZ emphasizes that prompt decisions are essential for ensuring energy security and supporting digital growth.