Is Hydrogen a Viable Power Source for Data Centers?

Hydrogen is one of the most promising energy sources of the present and future. Meanwhile, data centers are some of the most energy-hungry industries the world has ever seen. Implementing data center hydrogen power is a boon to both their operations and the globe, optimizing energy use and minimizing environmental impact in one of the highest-leverage contexts.

Below, we’ll explain how hydrogen power is an ideal power source for data centers by diving into its role, the benefits it provides, some challenges (and solutions), and its future outlook.

Understanding Hydrogen Power’s Role in Data Centers

Hydrogen has emerged as an unexpected solution for energy needs in data centers. The primary reason? Improvements in hydrogen production have resulted in hydrogen fuel cells being one of the most efficient and reliable energy sources.

In particular, hydrogen fuel cells power industrial operations through use in industrial-grade vehicles, along with their widespread usage in large-scale transit and spacecraft applications.

Looking ahead, they are likely to provide similar utility in expanded roles in data centers.

Why Hydrogen is a Good Fit for Data Centers

Data centers require an immense amount of energy, and their demand will only continue to increase in the future. Global data center power demand eclipsed 200 terawatt-hours per year as early as 2020 and is estimated at over 400 TWh in 2024, per Goldman Sachs. This is driven primarily by increased demand for AI technology, which could contribute to data centers consuming up to 4% of the world’s energy by 2030—at present, they consume between 1% and 2% globally.

However, hydrogen has the potential to meet these high demands much more efficiently, minimizing the impact data centers will have—even as they scale exponentially. The unique advantages of hydrogen, such as density and renewability, make it apt to meet the challenge.

Benefits of Hydrogen-Powered Data Centers

Hydrogen power, specifically green hydrogen, is the future of clean energy. Some of the biggest benefits it will bring to data centers are environmental impacts, efficiency, and scalability.

Environmental Impacts of Hydrogen Power

One of the biggest reasons behind all the enthusiasm for hydrogen-powered data centers is the potential for net zero emissions. Hydrogen’s capacity for carbon reduction is especially potent in the wake of recent UN Climate Change Conferences. In particular, experts have highlighted the potential impact of hydrogen energy storage, which both reduces emissions and eliminates air quality concerns of other energy sources common in data centers, such as diesel engines.

The capacity to reduce a data center’s carbon footprint while meeting all of its energy needs could alter the future of data centers. Rather than being a major contributor to worldwide emissions, they can be a beacon of green energy’s potential across all other industries.

Energy Efficiency and Reliability

The properties of hydrogen make it one of the most efficient energy sources available, as it is the lightest element with the highest energy content that can be leveraged for power. This factor benefits data centers economically, given their tremendous energy demand.

Another important factor to consider is hydrogen’s reliability as an energy source.

Namely, hydrogen is the most abundant element in existence. Given current and emerging technologies for harnessing its potential, it is increasingly reliable and consistent as an energy source. This is a big reason hydrogen has been the backbone of renewable energy resilience.

Scalability and Future Potential

Hydrogen power can future-proof data centers by preparing them to scale without needing to worry about whether their energy demands can be met. Global advancements in hydrogen availability, such as the UK’s push to produce 10 GW of hydrogen per year, will make the energy source even more efficient over time. The same can’t be said for other energy alternatives.

Across the global economy, hydrogen’s potential for scaling is critical to meeting future energy demands. Data centers and other industries with high energy demands are central to this equation, as reliance on AI and other emerging technologies will only grow over time.

Challenges of Using Hydrogen in Data Centers

The benefits above are all reasons experts expect hydrogen-powered data centers within two years, but there are also pitfalls to consider, such as costs, integration, and market readiness.

Cost and Infrastructure Requirements

One of the reasons hydrogen has not already overtaken other legacy energy sources is the fact that the infrastructure to support it does not yet exist at the scale it needs to. As a result, hydrogen power in its various forms can be relatively costly to produce and store. Data centers need to account for storage vessels, pipelines, fueling stations, and other costly investments.

However, the global momentum in hydrogen production is already turning the tide on these temporary disadvantages. In particular, hydrogen hubs subsidized and otherwise supported by US and global governments are making H2 power easier to access.

Other Technological Hurdles

Closely related to the infrastructure issue is the fact that many technologies and systems aren’t configured to work with hydrogen power at present. Data centers need to take steps to prepare servers and other critical technology for hydrogen power, which can create logistical challenges.

In addition, there are safety and regulatory concerns about industrial applications of hydrogen. However, people’s fears about hydrogen safety are largely overblown. Hydrogen’s safety in automotive and other uses is well-documented, and there is an abundance of resources available from governmental and other sources to ensure safe use of hydrogen power.

Market Readiness and Adoption

Another hurdle for the present moment is the fact that current hydrogen power technologies have not yet proven ready for implementation in the largest and highest-leverage data center use cases. While they have proven effective as backups, and prototypes for full functionality have been developed, there has yet to be sufficient proof of concept for many of the largest stakeholders in the market to fully buy into hydrogen power for data centers.

However, this is well on its way to changing. Across the world, emerging hydrogen economies are making the fuel easier than ever to leverage to its fullest capacity. It won’t be long before hydrogen is as commonplace as other energy sources—and giving them a run for their money.

Emerging Applications of Hydrogen in Data Centers

At present, hydrogen fuel is already being used in several high-leverage data center uses around the world. One of the best examples is how hydrogen fuel cells provide backup power for a Microsoft data center, proving their reliability for expanded roles in the years to come.

Looking ahead, hydrogen may break through alongside hybrid, innovative approaches to data center logistics. At least one data center as-a-service provider has developed plans for a fully functional, hydrogen-powered, modular data center. As global cloud computing needs grow over time, companies that adopt solutions like these will be best equipped to survive and thrive.

FASTECH’s Role in the Renewable Energy Transition

Hydrogen’s potential to meet current and future demand for energy at data centers is a boon to stakeholders in the field—and to broader global environmental and economic prosperity. It’s an efficient energy source that will power clean, green data center operations well into the future.

FASTECH is an ardent supporter of renewable energy solutions, including hydrogen. We offer hydrogen infrastructure design and construction services to data centers and other industry stakeholders looking to pave the way to efficient, climate-friendly, future-proof operations.

To learn how we can help your organization, get in touch today!