According to the Australian Energy Market Operator, data centres will consume three times as much energy by the end of the decade as today. That will be driven by the increased use of power-hungry AI applications and new data centres. Increased power use will come at a cost as the impact of carbon emissions is felt and data centre operators are measured on their environmental performance as much as their computing performance.
A major component of the operating expense for data centres comes from environmental management. Heating, ventilation and air-conditioning (HVAC) systems contribute between 30% and 40% of total facility energy use. And those systems rely refrigerants that can have a significant impact on the environment.
Transforming the way data centres and other large facilities such as office buildings and shopping malls use energy is an undertaking that will bring substantial benefits to facility owners. Operating costs can be reduced, and superior environmental performance is already seen as a competitive advantage.
Trane Technologies has been developing HVAC systems that take advantage of new, sustainable technology for over a century. From its origins as a plumbing company, it developed a heating system, eventually evolving as a company focussing on climate control and thermal management solutions for commercial buildings, homes, industrial operations and transport cold chains. A major element of that mission is the company's Gigaton Challenge.
Sharad Yadav, the company's Vice President for North and Southeast Asia, explained.
"Gigaton Challenge is one of the governing principles. It reflects our entire organisation's operations. We've set a goal to reduce one billion metric tons, or a gigaton, of greenhouse gas emissions from our customer's carbon footprints by 2030. We've already helped customers remove 331 million metric tons of carbon emissions."
Achieving significant reductions in carbon emissions and energy consumption is not simply a question of replacing legacy equipment. The plant operating in many buildings may be five years old or more. For Trane Technologies, that means helping data centre and building owners find ways to reduce costs and carbon emissions while ensuring existing assets continue to operate until they are fully amortised.
Yadav explained, "We have a dedicated team that does energy audits and assesses what equipment is being used. We then work on ROI-based proposals that are in line with asset management plans and budgets for our customers."
A significant part of the value Trane Technologies brings is that it manufactures the equipment it installs. With five manufacturing plants in the region, this enables them to design equipment that is suited for specific environments. As anyone in Australia knows, the differences in climate between the east and west coasts or the southern and northern regions are significant. Yadav noted that this regional ecosystem is strengthened by an R&D model in which 70 percent of projects support the global market, while 30 percent are focused on the specific needs of the Asia-Pacific region. This close link between local R&D and in-region manufacturing enables Trane Technologies to develop, test and produce solutions that are both globally relevant and regionally responsive. In-region manufacturing also minimises the risk of supply chain disruptions – a risk organisations have become increasingly aware of over recent years.
The commitment to ongoing research and development has recently born fruit. The company started investigating use of HFO (hydrofluoroolefin) refrigerants a couple of years ago and shifted its product portfolio ahead of the rest of the market.
"The results were very promising. And while we started making awareness in the market we improved on our performance using earlier refrigerants. We're now seeing peer groups and the market being compelled to follow with a quick shift in market demand for HFOs. Today, 70 to 80 percent of our portfolio in the Asia Pacific region is based on HFO," explained Yadav.
A substantial portion of Trane Technologies' business comes from its Thermo King range of products that bring cooling solutions to vehicles. Recent collaborations with Foton, JAC, Yutong, Geely, and Sinotruk have minimised emissions and reduced fuel usage while maintaining high efficiency and productivity without compromising the ability to reliably deliver temperature-sensitive goods that are maintained in optimal conditions.
Alongside the continuing research and development of refrigerant gas based cooling systems, Yadav said recent acquisitions are helping to fuel further innovation. One is LiquidStack to bring liquid cooling to data centres – a technology that Yadav said is likely to dominate data centre thermal management. That commitment to liquid cooling was further enhanced when Trane Technologies completed the acquisition of Stellar Energy, a specialist in liquid-to-chip data centre cooling solutions.
Combined with the rest of the company's portfolio that includes oil-free magnetic chillers capable of handling temperatures up to 52°C, fan wall units and other equipment, Yadav said, "We are in a unique position with very few players who can handle that kind of capacity. Our governing principles like ESG and the Gigaton Challenge continually drive us to be more energy efficient."
Data centre energy use is set to triple with HVAC remaining a major cost driver. Trane Technologies' commitment to research and innovation, driven by its Gigaton Challenge and in region manufacturing give it the agility to reduce emissions and operating costs. By switching to HFOs, expanding liquid cooling capabilities and partnering on efficient transport and related industry solutions, the company's technology stack turns environmental performance into a competitive advantage.