But these facilities come with an environmental price. They consume vast amounts of electricity and water, and drive up carbon emissions. They also raise concerns around resilience to power outages, natural disasters and climate risks. As AI workloads expand, these pressures will only grow.
This isn’t only a challenge for big tech. Every business, from major corporations to the smallest SMEs, relies on data, cloud platforms, servers, and increasingly, AI tools. That means they’re also part of the footprint and exposed to the risks.
But they can also be part of the solution. With smart data management, greener supplier choices, and standards, it’s possible to reduce emissions and strengthen resilience.
Data centres contribute significantly to carbon emissions. Globally, they already account for around 1% of electricity demand. And this share is rising.
In the UK, AI infrastructure alone could consume the equivalent of a quarter of national electricity by 2030.
The cooling systems necessary to prevent overheating often use around 40% of that energy.
Those water-intensive cooling methods, from chillers and towers to liquid cooling systems exact a major environmental cost. One medium-sized facility can use tens of millions of litres annually. This is comparable to the daily needs of hundreds of thousands of people.
Sourcing water can also place additional stress on local supplies. With reports of water scarcity in the UK this year, this could pose a major environmental challenge. And, as AI workloads increase, water demand will only be amplified. One study projects that by 2027, worldwide AI operations could consume as much as 6.6 billion cubic metres of water. This is close to two-thirds of England’s entire yearly usage. Beyond sheer volume, much of this water cannot be reused due to contamination in the cooling process.
Together, energy and water use contribute to significant carbon emissions. Globally, greenhouse gas emissions from data centres are forecast to rise from 180 million tonnes today to 300-500 million tonnes by 2035, pushed by high demand from AI and other data-heavy applications.
Alongside environmental impact, there are risks around resilience and cybersecurity. Power outages, overheating, or extreme weather events can disrupt data centres, with cascading effects on the services SMEs depend on.
At the same time, concentrating sensitive data in a few locations makes them attractive to attackers. Questions of data sovereignty (such as whether information is stored in the UK, EU, or beyond) add another layer of complexity. For SMEs, these factors highlight that the sustainability and security of digital infrastructure are two sides of the same coin.
You may not run your own data centres, but you can still shape their impact. The most effective place to start is by measuring your own digital carbon footprint. The major cloud providers, including AWS, Google, and Microsoft, now offer tools to estimate the emissions linked to your usage. Even a simple inventory of your data storage and workloads can reveal hotspots.
Once you have a good baseline understanding, you can take some practical steps to reduce emissions. These can include:
Optimising and reducing your usage: Avoid running more servers than you need. Move files and applications from underused machines into shared or cloud-based systems. You should also remove redundant files from time to time and retire backups you no longer need. It’s even possible to schedule energy-intensive tasks when renewable power is more available using resource like the Carbon Intensity API.
Choosing better suppliers: Migrate workloads to providers that run on renewable energy. Even better if they aligned with recognised standards such as ISO 14001 or ISO 50001. This is especially important, as using environmentally friendly datacentres can cut emissions associated with storage by more than 80%. Local hosting can also cut down on the energy required to move data.
Using your influence: When customers demand greener services, providers respond. Make sustainability a requirement in tenders and contracts, and support policies that promote renewable energy and efficient infrastructure.
These actions not only reduce environmental impact but can also bring cost savings and position your business more favourably with customers and regulators. They also show due diligence around resilience and cybersecurity, strengthening trust with partners and clients.
For small businesses, standards are a practical way to cut emissions and show credibility. And you don’t need to be a large enterprise to benefit from them. Aligning with recognised frameworks can help you measure, manage, and reduce your environmental footprint (including the hidden emissions from data centres).
There are two main ways SMEs can use standards:
Through your supply chain: By choosing data centres that adhere to sustainability standards, you inherit the benefits of their energy efficiency. This can cut the emissions linked to your data storage and processing.
Within your own operations: You can also adopt standards directly to improve environmental performance more broadly. This doesn’t need to be complex, and some standards are even designed specifically with smaller firms in mind. They provide step-by-step guidance on things like energy management, carbon reporting, and net zero planning.
ISO 14001 - Environmental Management System (EMS): A globally recognised standard that helps organizations manage their overall environmental impact. It provides assurance that sustainability is embedded into everyday processes.
ISO 50001 - Energy Management System: A framework for systematic energy efficiency improvements.
BSI Flex 3030 - Net zero transition plans for small and medium enterprises. Code of practice: A nationally agreed standard that explains, in straightforward language, how to start moving to net zero.
BS EN 50600 – Data centre facilities and infrastructure: A series of standards covering data centre design, power, cooling systems, security, and sustainability. This includes reducing the total energy consumption of the data centre, increased use of renewable energy sources and re-use of waste heat.
In the UK, you’ll usually see BS EN 50600. Outside Europe, you may see the ISO/IEC 22237 series, which is the international equivalent with matching content.
ISO/IEC 30134 series – Data centre performance measures: This series tells providers how to measure and present their efficiency so customers can compare like-for-like. Key parts define PUE (how much extra energy the whole site uses to run and cool the IT), WUE (how much water is used for cooling), and CUE (the carbon impact of the energy used). In Europe, these metrics are adopted as the BS EN 50600-4 series, with matching, harmonised content.
With AI such a major driver of the growth of data centres, there is a certifiable AI management system standard (MSS) that is also relevant: BS ISO/IEC 42001.
The MSS should influence how data centres are selected and managed with regard to climate impact. Are data centres energy-efficient? Do they use renewable energy or carbon-neutral hosting? Are they optimizing server utilization to reduce waste?
Organizations should also consider all relevant risks and environmental impacts of AI systems. This includes cooling demands, energy use of compute-intensive training, and what to do about e-waste, upgrades and recycling hardware.
The environmental footprint of data centres will only grow as digital demand accelerates. SMEs can’t ignore it, but they can shape it. By making informed choices, aligning with sustainable providers, and leveraging standards, it is possible to reduce costs, cut emissions, and strengthen resilience.
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