Digitalization: Technology drives transformation

The energy requirements of digitalization are enormous – and are continuing to grow. Three areas are driving this growth: user devices such as computers and smartphones; the network infrastructure with its mobile stations and internet routers; and – the biggest chunk – data centers, whose powerful servers have to be kept at a constant temperature of 22 to 24 degrees Celsius.

The hunger for energy can be illustrated with two examples. One hour of video streaming in full HD resolution requires 220 to 370 watt hours (Wh) of electrical energy. This produces around 100 to 175 grams of carbon dioxide (CO2), which is equivalent to the emissions produced by a small car driving one kilometer. While a search query on Google requires around 0.3 Wh of energy, the value for a single query on ChatGPT is ten times higher. Artificial intelligence (AI) and the mining of cryptocurrencies require a great deal of energy due to the intensive computing power and the continuous operation of powerful hardware. The International Energy Agency (IEA) predicts that the demand for electrical energy will continue to rise worldwide – driven by the growth of data-intensive technologies such as AI, cloud computing and streaming services.

This raises fears that the demand for energy from digital applications could outstrip supply in the coming years. US tech giants, whose business models are hardly conceivable without AI, take such fears very seriously. In the United States, efforts are therefore being made to develop small modular reactors (SMRs) as a modern alternative to conventional nuclear power plants. Several companies, including Microsoft, Google and Amazon, are working on projects for these compact reactors, which are considered safer, cheaper and more flexible. Despite initial enthusiasm and government support, however, there are setbacks – as the failure of the NuScale project in Idaho shows. The operators ended the project due to rising costs and doubts about its economic viability.

In Germany – the most important location for data centers after the USA – nuclear power is currently not an option, at least as long as politicians do not decide to return to nuclear power. Instead, a variety of strategies and technologies are being used to meet the energy requirements of data centers. In addition to reliable operation and performance, sustainability plays a key role; since 2024, 50 percent of the energy consumed by German data centers must come from renewable sources, and, from 2027 onwards, even 100 percent. Long-term contracts with suppliers of renewable energies – known as Power Purchase Agreements (PPAs) – make it possible to secure supplies cost-effectively and sustainably. Fuel cells that can be powered by green hydrogen are now being used as a backup or primary energy source in pilot projects. According to the German Data Center Association (GDA), 88 percent of the electricity used by data centers – which accounts for around half of operating expenses – already comes from renewable sources.

A flagship project from the German company Windcloud shows that it is possible for server performance to be largely sustainable. In the North Frisian municipality of Enge-Sande, the company operates a data center with wind power from offshore wind farms in the North Sea – solar and gas serve as a backup and fail-safe with a share of around two percent. The operators use the waste heat innovatively for algae cultivation. And as the algae not only need heat to grow, but also bind large amounts of carbon dioxide, the data center even absorbs CO2 from the environment. Last but not least, the algae are processed and used for food production.

Some operators also invest in their own solar plants, wind farms or geothermal energy. For example, the WestfalenWIND Group builds wind turbines that house data centers in their towers and supply them with wind power generated on site in an almost climate-neutral way. In 2019, this economically successful concept was awarded the “German Data Center Prize”. On the technical side, methods such as liquid cooling reduce energy requirements. Optimized server architecture and virtual servers also ensure lower energy consumption while simultaneously increasing performance.

The ECOC (European Conference on Optical Communication), for example, shows how important it is for experts to exchange ideas on current and planned projects. VDE organized its anniversary edition last year in Frankfurt am Main. As a central point of contact for experts from the telecommunications industry, the ECOC brings together scientists, engineers and management. At the accompanying trade fair, more than 300 international exhibitors presented their solutions and the latest market developments that are driving forward the expansion and efficiency of fiber optic networks and optical transmission systems.