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🇫🇮 Finland /Energy & Infrastructure

Will data centers consume electricity needed for the green revolution?

From Helsingin Sanomat · () Finnish

Translated from Finnish, summarized and contextualized by DistantNews.

At a glance

Opinion Named sources Context piece
  • Concerns exist that data centers might consume so much electricity that affordable power for the green transition becomes scarce.
  • The definition of "green hydrogen" by the EU excludes nuclear power, creating hurdles for related industries, while data centers can use any electricity source.
  • The author argues that market forces alone won't solve the electricity needs of the green transition, criticizing the arbitrary treatment of different electricity users and calling for national regulation.

A significant concern is whether the burgeoning demand for electricity from data centers will deplete the supply of affordable power needed for the green transition. This debate is intensifying as Finland aims to attract industries reliant on green hydrogen, such as steel and ammonia production, which require substantial energy inputs.

The EU's classification of "green" energy sources complicates matters. Nuclear power, a significant source of low-carbon electricity, is not considered renewable by the EU and thus cannot be used for "green hydrogen" production. Data centers, however, face no such restrictions and can utilize any form of electricity. While data centers can purchase "origin-guaranteed" electricity, which includes power from wind, solar, nuclear, and fossil fuel plants, this guarantee can be sold separately from the actual energy and consumed at a different time.

Are data centers consuming electricity such that affordable electricity is no longer enough for the green revolution?

— Esko SirénPosing the central question about the impact of data centers on green energy availability.

The author contends that the current system, particularly the "origin guarantee" for renewable energy, has led to volatile electricity prices. This price fluctuation discourages significant green investments. Ironically, the increased production of green energy and the associated guarantee system are cited as causes for this volatility. Investments in secondary areas, like waste heat recovery, have taken precedence over core green transition needs.

Furthermore, the author criticizes the arbitrary differentiation in how various electricity consumers are treated. While "green hydrogen" production has stringent requirements for its electricity source (only wind or solar), data centers and other users have far fewer restrictions. This disparity, combined with market dynamics, means that market forces alone cannot adequately address the electricity demands of the green transition. The writer calls for national regulations to compensate for this inequality and to ensure that electricity production is balanced, not just for data centers but for all major consumers.

The markets will not solve the electricity needs of the green transition. The treatment of different electricity users is arbitrary.

— Esko SirénCritiquing the market-based approach and calling for regulation.
DistantNews Editorial

Originally published by Helsingin Sanomat in Finnish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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