- Rising power demands drive data centres to adopt PPAs for cost control.
- 24/7 renewable energy matching emerges as a key sustainability strategy.
What happened: Data centres face rising energy costs
Global data centre electricity consumption is set to more than double between 2023 and 2028, with Schneider Electric forecasting demand to surpass 1,000 Terawatt hours by 2026—matching Japan’s total electricity use. This growth has intensified the demand for power purchase agreements (PPAs), which provide a predictable electricity price while reducing exposure to market fluctuations.
According to Dimension Market Research, the PPA market is projected to grow at a 32.8% CAGR from 2025 to 2034, reaching a value of $7.65 trillion. By combining PPAs with 24/7 renewable energy matching, data centres aim to reduce environmental impact while ensuring uninterrupted power supply.
As the industry continues expanding, the adoption of PPAs and clean energy strategies could play a crucial role in meeting sustainability targets while maintaining operational efficiency.
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Why it’s important
The increasing energy demands of data centres are reshaping power procurement strategies. As AI and cloud workloads expand, operators face mounting costs and the challenge of maintaining sustainable energy use.
PPAs provide a viable solution by offering stable energy pricing and supporting the transition to renewable power. Meanwhile, 24/7 energy matching aligns with global sustainability goals, ensuring facilities rely less on fossil fuels.
As data centre operators prioritise efficiency and resilience, the adoption of PPAs and renewable strategies will become increasingly critical for long-term energy stability.
