The digital world is expanding at an unprecedented pace, and the data centers powering these transformations often remain behind the scenes, overshadowed by the emerging technologies they support. As the demand for digital services grows, so does the need to recognize and optimize the energy-intensive infrastructure that makes these actions possible. 

But there’s no such thing as a free lunch. Data centers require a tremendous amount of energy, much of it drawn from traditional power grids that are already under pressure. 

  • Over 60% of energy is wasted as heat in traditional power generation. Most data centers burn fossil fuels to generate electricity, but the process is thermodynamically inefficient. More than half of the energy is released as waste heat and contributes to greenhouse gas emissions. This means only a fraction of the fuel’s energy reaches end users, making the energy system highly inefficient and harmful to the environment. 
  • Cooling systems account for 40% of a data center’s total energy consumption. The additional servers to support digital technologies drives the need for more robust and efficient cooling systems to maintain optimal server environments and prevent hardware malfunction. These systems already represent one of the largest contributors to operational energy use; thus, as server density increases, so does the energy required for cooling, compounding the overall environmental impact. 
  • Data centers consumed 4.4% of total U.S. electricity. Their need for constant, reliable power comes at a steep environmental cost. In 2023 alone, data centers were responsible for 105 million metric tons of CO2 equivalent emissions, underscoring the urgent need for more sustainable energy strategies. 

A Clean Energy Path Forward 

To meet rising energy demands without overwhelming traditional power grids, data centers are exploring more efficient and sustainable energy solutions such as cogeneration, also known as combined heat and power (CHP). Cogeneration is “the concurrent production of electricity or mechanical power and useful thermal energy (heating and/or cooling) from a single source of energy.” In the context of data centers, the adoption of CHP can provide significant benefits by:  

  • Improving energy efficiency: CHP captures and reuses energy that would otherwise be wasted. The recovered heat can be used for facility heating or cooling, making CHP a dual-purpose system that significantly boosts overall energy efficiency—achieving up to 85–90% efficiency. 
  • Reducing greenhouse gas emissions: CHP systems can significantly reduce CO₂ emissions by maximizing fuel use and minimizing waste. This overall helps data centers lower their carbon footprint and contribute to broader sustainability goals. 
  • Supporting the need for five-nines reliability. CHP systems provide on-site generation, reducing dependence on the grid and improving uptime. They can provide uninterrupted power during outages and support distributed energy resources like microgrids.  This makes them a compelling option for facilities seeking both operational stability and environmental responsibility. 

If you’re exploring energy strategies for your data center or want to learn more about sustainable infrastructure, let’s connect. Forrester clients can access our exclusive reports and schedule guidance sessions to continue to explore current trends and solutions.