Spain
November 20, 2024

Renewable Energy and Digital Transformation: The Strategic Challenge of Integrating Data Centers into the Energy Mix

The growing demand for data centers forces Europe to harmonize the digital and energy transition. David Redoli Morchón, from Solaria, highlights how regulations and national planning are key to a competitive and sustainable future.
By Milena Giorgi

By Milena Giorgi

November 20, 2024
Energía renovable y transformación digital: el desafío estratégico de integrar centros de datos al mix energético

“The digital world is an electric world. By definition, it needs clean electricity to function,” says David Redoli Morchón, Director of Institutional Relations at Solaria Energía y Medio Ambiente. In an interview with Energía Estratégica España, he describes how the planning of the energy transition “must be hybridized” with digital transformation.

The growing digitalization of sectors such as e-commerce, artificial intelligence, and smart cities depends on data centers that require a constant energy supply.

According to the recent annual electricity report from the International Energy Agency (IEA), data centers consumed 460TWh in 2022, a figure that, according to their estimates, could increase to more than 1,000TWh by 2026 and triple by the end of the decade.

In this regard, the executive affirms that this situation demands the hybridization of the energy and digital transitions: “It makes no sense to advance in one without the other; they need to go hand in hand.”

The operation of data centers — the backbone of a digital society — depends exclusively on electricity.

In Europe, regulations already require this energy to be renewable, meaning it must be generated from sources like solar photovoltaic, wind, or hydropower.

“E-commerce, AI systems, and almost everything digital rely on data centers that need clean energy to operate,” emphasizes Redoli and points out that to ensure sustainability, it is essential for the renewable energy supply to be proportional to the demand generated by these infrastructures.

Decentralization as a strategic advantage

One of the key points raised by the Solaria executive is the decentralization of energy generation, which would allow for greater expansion than the current system, as today, data centers are tied to large national electricity grids.

“The solution is to connect these facilities directly to nearby solar or wind plants,” he proposes. However, current regulations do not allow for this flexibility.

To address this issue, Redoli suggests regulatory changes that would allow for proximity generation using local distribution networks: “This would not only lower costs, but also make it feasible to install data centers in remote regions.”

Additionally, technological hybridization — combining solar and wind plants with battery storage — would be key to ensuring a constant energy supply: “If you have wind at night, solar during the day, and storage, you can supply any facility anywhere in the country without relying on national grids,” he explains.

Spain: a potential data center hub

Although Spain can offer abundant and cheap renewable energy, consumers do not perceive this benefit in their final bills, reducing competitiveness compared to countries like France or Germany, which implement policies that directly affect electricity bills.

Thus, the integration of digital and energy transitions is not just a technical issue but also a strategic one.

“The development of data centers is key to a country’s technological sovereignty. Regions that lack enough clean electricity will fall behind not only in the energy transition but also in the digital one,” warns Redoli.

The United States, for example, has understood this strategic relationship. Regions like Texas and Ohio have attracted tech industries due to their ability to offer low-cost renewable energy. For Europe, the key will be to develop a national plan that harmonizes these transitions.

For Redoli, the solution lies in updating regulations and supporting the integration of renewables into digital infrastructure.

“We need data centers to be easily connected to local solar and wind plants and for there to be a national plan to align renewable energy supply and demand,” he explains and concludes, “Countries that fail to integrate both transitions will be left out of future technological and energy developments.”

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