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Process Safety Management and Alternative On-Site Power Generation in the Data Centre Industry

Process Safety Management and Alternative On-Site Power Generation in the Data Centre Industry

Data centres are pivotal to the UK's digital economy, powering everything from cloud services and e-commerce to essential public services. With an ever-growing demand for data storage and processing, last week the UK government categorised data centres alongside the NHS and Energy as "critical national infrastructure", highlighting their importance in maintaining national security and economic stability. As the consumption of data increases, so does the need for data centres to expand their storage capacity, which in turn increases the demand for reliable energy to power them.

Posted

25.09.2024

Written by

Richard Bowen

London is the largest data centre market in Europe and will be the first-gigawatt data centre hub in the region, with CBRE reporting that take-up in 2025 is expected to be almost triple 2019 levels. Mordor Intelligence reported that the sector in the UK was valued at over £7 billion annually, with future growth anticipated due to the explosion of cloud computing, artificial intelligence (AI), and big data applications.

This ongoing expansion reflects the digital transformation across sectors, from retail to healthcare, as businesses rely heavily on digital platforms. Data centres play a crucial role in ensuring business continuity, making them indispensable to the overall functioning of the economy. Failure or downtime in these centres can result in substantial financial and reputational damage. According to a study by Uptime Institute, the cost of a single minute of data centre downtime can range from £5,000 to over £7,000, making reliable power supply and safety management essential.

The Need for Sustainable Power Solutions

With the growing energy consumption of data centres comes an equally growing concern over their environmental impact. Data centres consume about 3% of the world’s electricity and contribute to around 2% of global carbon emissions, according to a report from the International Energy Agency (IEA). In the UK, their energy consumption continues to rise, with operators facing increased pressure to find greener solutions to their power needs.

Traditionally, most data centres have relied on diesel generators for backup power, but diesel is notorious for its carbon emissions and environmental degradation. To address these issues, companies are turning to alternative on-site power generation solutions, such as hydrogen fuel cells, natural gas, biogas generators, and renewable energy sources like wind and solar power.

 

Kao Data, a UK-based data centre operator, announced in 2022 it was running its facilities entirely on 100% renewable energy, focusing particularly on wind and solar power.

This move aligns with the broader trend in the industry, where sustainability and energy efficiency are becoming central to business models. According to the Uptime Institute’s Global Data Centre Survey, 80% of respondents reported that energy efficiency is one of the top priorities for their facilities. The pressure to shift away from traditional power sources such as diesel has become increasingly urgent, with operators like Kao Data leading by example.

However, while renewable energy offers numerous advantages, it also introduces a new set of challenges, especially in terms of reliability. Solar and wind power are variable energy sources, dependent on weather conditions. To ensure uninterrupted power supply, data centres often pair renewables with energy storage solutions like batteries. According to a report by the International Renewable Energy Agency (IRENA), battery storage capacity is expected to increase tenfold by 2030, driven in part by the need to stabilise renewable energy in sectors like data centres.

The Role of Process Safety Management

The adoption of alternative power sources in data centres, while beneficial for sustainability, also introduces new operational risks that need to be carefully managed. Process Safety Management (PSM) plays a crucial role in ensuring the safe integration of these technologies. PSM is a systematic approach to managing the risks associated with processes that involve hazardous chemicals or operations. Originally designed for high-hazard industries like oil and gas, PSM principles are now increasingly relevant to data centres, especially for the introduction of more complex power generation methods.

Hydrogen fuel cells are emerging as a promising solution for data centres aiming to reduce their reliance on diesel generators. Unlike traditional energy sources, hydrogen fuel cells generate electricity through a chemical reaction between hydrogen and oxygen, with water as the only by-product. This makes them an attractive option for data centres looking to cut emissions and operate more sustainably, but with hydrogen having the highest energy content of any common fuel by weight, it is also the lightest element, making it difficult to store and transport.

The properties of hydrogen mean integrating hydrogen fuel cells into large-scale data centres is not without its challenges, therefore, thorough process hazard analyses (PHAs) are essential to assess the potential risks associated with hydrogen use in powering data centres. These assessments examine all aspects of the fuel cell system, from storage and handling to the possibility of leaks and explosions. By identifying potential hazards early in the design and installation phases, operators can implement risk mitigation measures such as gas detection systems, proper ventilation, and robust containment protocols.

Microsoft has been at the forefront of testing hydrogen fuel cells in its data centres. In a 2020 pilot project at its facility in Salt Lake City, the company successfully replaced diesel backup generators with a hydrogen fuel cell system, demonstrating the viability of this technology. The system provided reliable backup power while eliminating carbon emissions, marking a significant step towards achieving Microsoft's goal of becoming carbon negative by 2030.

In addition, the introduction of on-site power plants, including those that use natural gas or biogas, also brings challenges related to fuel handling and combustion safety. Natural gas, while cleaner than diesel, is combustible and requires strict safety measures to prevent leaks or malfunctions that could lead to fire hazards. According to a study by the Institution of Mechanical Engineers (IMechE), process safety in such energy systems is critical, particularly as data centres begin to integrate these alternative sources of power.

Looking further ahead, some experts are even considering the possibility of using small modular reactors (SMRs) to power data centres. SMRs are a type of nuclear reactor that are smaller and more flexible than traditional nuclear power plants. They offer a consistent, low-carbon energy supply, which could be ideal for data centres with high energy demands. According to the World Nuclear Association, SMRs could play a role in decarbonising data centre operations, especially in countries with strict emission targets like the UK.

However, the adoption of SMRs in data centres is still a long way off, largely due to the complex regulatory and licensing requirements associated with nuclear energy. The UK government is showing signs of being open to nuclear innovation, but any move to introduce SMRs into the data centre industry would require extensive regulatory approvals and public consultations, given the safety concerns surrounding nuclear power. Nevertheless, SMRs represent a potential future solution for data centres seeking reliable, low-carbon energy.

Balancing Innovation with Safety

As the data centre industry evolves and adopts alternative power generation technologies, the importance of robust Process Safety Management (PSM) programmes becomes even more critical. These programmes provide a framework for identifying, assessing, and mitigating the risks associated with new technologies, ensuring that data centres can operate safely while embracing innovation.

The challenges posed by hydrogen fuel cells, natural gas, and even nuclear power underscore the need for a proactive approach to safety. By conducting thorough process hazard analyses and implementing inherently safe design principles, data centre operators can prevent accidents before they happen. This approach is particularly important as the industry continues to explore alternative power sources that may be unfamiliar or less well-understood than traditional energy systems.

The UK’s data centre industry is at a pivotal moment as it seeks to balance the growing demand for digital services with the need for sustainable, reliable power. The integration of alternative on-site power generation methods offers significant benefits but also introduces new risks that must be carefully managed through robust PSM practices. As data centres continue to expand and evolve, their role in the UK economy will only grow, making the safe and reliable operation of these facilities more important than ever. By investing in safety and sustainability, data centres can continue to support the UK’s digital economy while reducing their environmental impact. For more information on Finch Consulting and its Process Safety services, please contact [email protected].

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