AI drives data centre sustainability across the globe

Seagate has released the findings of its Decarbonizing Data report, analysing the ways artificial intelligence is changing infrastructure priorities for enterprises and data centres, and the ongoing challenge of balancing total cost of ownership with sustainability requirements.

The global study draws on survey responses from 330 data centre professionals across 11 markets, including Australia, China, France, Germany, India, Japan, North America, Singapore, South Korea, Taiwan and the United Kingdom.

The report indicates that Australian organisations are ahead of their global counterparts with regard to sustainability in data storage operations. Of Australian respondents, 86.7% predicted that their data storage operations will be very sustainable within five years, compared to 70% globally.

This outlook is underpinned by the widespread adoption of renewable energy in Australia, cited by 76.7% of respondents, a proportion higher than the 61.2% global average. However, 80% of Australian respondents indicated they faced physical space constraints limiting the implementation of sustainable infrastructure.

Goldman Sachs Research projects the power demand from data centres worldwide could rise by as much as 165% by 2030 compared with 2023. Seagate's research reflects this, with 53.5% of business leaders now listing energy usage as a top concern. Rising data volumes, the mainstreaming of artificial intelligence, and slower gains in power efficiency have all contributed to increased pressure on businesses to manage emissions, infrastructure expansion and costs.

Nearly all survey participants (94.5%) reported their need for data storage has increased, with 97% predicting that AI's growth will further influence this demand. Almost 95% expressed concern about the environmental impact of data storage, though only 3.3% prioritised environmental factors when making purchasing decisions.

Significant barriers to improved sustainability in data centres include high energy consumption (53.5%), requirements for raw materials (49.5%), physical space constraints (45.5%), infrastructure costs (28.5%), and acquisition costs (27%). Despite near universal acknowledgement (92.2%) that extending the life cycle of storage equipment is important, only 15.5% identified it as a principal purchasing consideration.

Jason Feist, Senior Vice President of Cloud Marketing at Seagate, said: "Data centres are under intense scrutiny – not only because they support modern AI workloads, but because they are becoming one of the most energy-intensive sectors of the digital economy. This calls for a fundamental shift in how we think about data infrastructure – not as a trade-off between cost and sustainability, but as an opportunity to optimise for both."

The report proposes three strategic pillars for achieving a more sustainable data future: technological innovation; a commitment to extending lifecycle and circularity; and shared accountability across the ecosystem.

Technological advances in storage density, computational power, and energy-efficient technologies such as liquid or immersion cooling and improved HVAC systems are identified as key levers to reduce energy and emissions. The report points to Seagate's HAMR-based Mozaic 3+ platform, which it claims can triple storage capacity within the same footprint and reduce embodied carbon by more than 70% per terabyte, while also reducing costs per terabyte by 25%.

Commitment to refurbishment, reuse, and ongoing maintenance of storage equipment is highlighted as a means to extend product lifespan and curtail waste. Improved environmental monitoring and transparent reporting are also named as foundational for accountability.

The need for industry-wide collaboration to achieve meaningful emission reductions is also stressed, with Feist stating: "Sustainability cannot be solved in isolation. A holistic approach spanning infrastructure, life cycle management, and industry-wide accountability could ensure that the growth of AI and data centre operations does not come at the expense of the environment."

For the Australian market, 66.7% of respondents strongly agreed there has been increased demand for data storage services, placing Australia at the top globally. While 43% strongly agreed AI will have a significant impact on data centre operations, this trailed the US, Taiwan and China.

Environmental concerns among Australian respondents were pronounced, with 96.7% expressing concern about the environmental impact of data storage practices. More than half (56.7%) cited the large amount of raw materials required for storage infrastructure as a concern, the same percentage expressing concern about associated carbon emissions, and 33.3% referencing high energy consumption.

Despite high concern, none of the Australian respondents said environmental impact was a priority in procurement. Only 13.3% in Australia use liquid or immersion cooling systems, slightly below the global average of 16.4%.

On barriers, the average budget required to make Australian data storage operations more sustainable was USD $4.5 billion, below the global average. Lack of physical space was the top obstacle identified by Australian respondents (40%), ahead of infrastructure build costs (36.7%) and acquisition costs (30%).

A disconnect was noted between awareness and action: 93% of Australians strongly agreed or agreed that extending equipment lifecycle is key to sustainability, and 50% stated they were extremely familiar with lifecycle issues, but just 16.7% identified lifecycle quality as a top purchasing driver.

Australian motivators for greener operations also differ from the global average. Forty percent cited financial benefits as a chief factor for adopting sustainable practices, well behind the global figure of 56.1%. Official certifications were noted by 40%, slightly above the global average. For 30% of respondents, the threat of sanctions or fines would be the preferred incentive to drive change—a higher share than other markets.

AI is already having an influence on sustainability practices in Australia, with 53.3% using it to monitor targets and 56.7% to streamline operations. Seventy percent believed customer requests for sustainable storage could further push companies to adopt greener approaches.