DATA CENTRES
Unlocking power, investment and Net Zero credibility for data centres
Across the UK and Ireland, data centre growth is being throttled not by demand, which is growing exponentially, but by power availability. Suneel Appan, client account manager at Future Biogas, explains how unsubsidised biomethane presents an available, proven, stable and sustainable alternative to waiting for the electricity grid to catch up
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his won’t be the first article you’ve read that touches on the queue for grid connections – it might not even be the first today – but it has become the defining topic for infrastructure investors, developers and operators and shows no sign of relenting. Across many of the world’s economies, Nationally Significant Infrastructure Projects (NSIPs), such as data centres, are stalled or delayed as they come up against capacity- constrained electricity grids. For an industry fuelled by rapidly scaling AI and the continued long-term growth of cloud computing demands, it’s undoubtedly the number one challenge. In the UK and Ireland, the problem is acute. Many UK operators face 5-10 year delays for grid connections, with some offered dates in the late 2030s. In the Dublin area, there’s a de facto moratorium on new data centre connections until at least 2028. And when connection dates are offered, they come with the bitter taste of grid reinforcement charges that can run into the millions. Sometimes, there’s even an expectation that projects will become part of the energy generation mix by over-sizing to enable electricity export. Against this backdrop, data centre operators
are looking to alternative energy sources to power new capacity. Backup fleets, fuelled by fossil gas or diesel, are increasingly contributing baseload power, with a negative impact on local air quality, wider net-zero and ESG targets, and forthcoming disclosure requirements – such as the EU’s Corporate Sustainability Reporting Directive. At the same time, investor expectations are tightening, with boards, financiers and customers expecting demonstrable Scope 1 and Scope 2 emissions reduction strategies.
Biomethane: additional, sustainable – and proven
Biomethane is produced through anaerobic digestion (AD), a process where bacteria break down organic material to produce biogas, a mix of predominantly methane and carbon dioxide gases. This mix is then upgraded, resulting in pure methane. In BECCS plants (BioEnergy with Carbon Capture and Storage) the biogenic CO2 is captured, and either utilised industrially (e.g. food and beverage production) or stored in geological reservoirs. When the CO2 is permanently stored, this additional carbon-negative step results in high-integrity greenhouse gas removals (GGRs) which can be traded to fund further sustainability initiatives. AD plants also produce digestate, a nutrient-rich fertiliser that is returned to farms in a circular system replacing nutrients in the soil. Studies show that bioenergy feedstock crops grown within rotational and sequential systems can improve soil health and water holding capacity, enhance nutrient cycling, build organic matter and increase crop yields. Moreover, they reduce farmers’ reliance on energy-intensive fossil-based fertilisers, which are increasingly mined or manufactured overseas, and subject to significant price volatility. Biomethane is proven; it’s a commercial reality. Future Biogas already operates 11 AD plants
across the UK, including the country’s first unsubsidised biomethane facility, Moor Bioenergy; the result of a pioneering partnership with AstraZeneca.
Data centre operators need immediate power solutions. They need scalable, dispatchable, low or negative-carbon energy, supplied via reliable infrastructure and without massive grid reinforcement payments. And crucially, they need it on far shorter timescales than electricity grids can offer.
The case for biomethane
New technologies may form part of the answer. Hydrogen has been proposed by some as a viable fuel in the data centre mix, while mini- nuclear is being mooted worldwide as a solution to spiralling demand. However, hydrogen-at- scale is in its infancy and notably expensive, and the UK won’t see its first small modular reactor (SMR) before 2035 – Ireland has historically been opposed to nuclear power altogether. But despite all these challenges, a solution
exists today. Biomethane – especially when produced without government subsidy – is a direct, low-carbon, drop-in substitute for fossil gas. Chemically identical to fossil natural gas, biomethane displaces it in gas engines, turbines, combined heat and power (CHP) plants or fuel cells without modification, thus providing stable, dispatchable behind-the-meter (BtM) power. Compatible with proven on-site generation assets, biomethane is able to match data centre load profiles, while providing high uptime. There are multiple crucial benefits of biomethane when compared to grid electricity. It is easily distributed through the existing gas infrastructure. Where needed, new gas connections can be secured in much shorter timeframes than those for electricity. Gas networks are also highly reliable, achieving 99.9%-100% availability across interconnected grids in the UK, Ireland, and the rest of Europe. The existing gas network effectively operates as the UK’s largest battery, capable of storing over 650 GWh of energy per day or 100TWh per annum, offering security of supply1. Biomethane’s environmental advantages
are manifold. When produced in a BECCS plant (see box), biomethane can be carbon- negative, resulting in a lifecycle with a net reduction of atmospheric carbon dioxide (CO2). What’s more, the process is fully additional: produced without government subsidy, every megawatt hour is traceable, accountable, and exists solely because of offtakers’ contracts with bioenergy producers.
The ease with which biomethane can be
produced, distributed and substituted into existing gas power infrastructure is compelling. It’s possible to complete both a new biomethane plant, and on-site generation assets at the data centre end, well within the 24-36-month timeframe of the data centre build itself – far quicker than the five-year minimum for a new electricity grid connection.
A low-risk, bankable energy structure
Biomethane-fed power solutions offer data centre operators sustainable and compliant, reliable power on a faster timeline than the alternatives. They can also be modular, with multiple 10Mwe (megawatt electrical) equivalent blocks supporting phased development and project scalability. Importantly, unsubsidised biomethane offers policy resilience, with no risk to the business model from subsidy-linked reclassification. And unlike short-term offset purchases or private power agreements (PPAs), biomethane sourced through partnerships is priced through long-term gas purchase agreements (GPAs), avoiding wholesale volatility. There are additional financial benefits. When onsite generation is provided through an
18 BUILDING SERVICES & ENVIRONMENTAL ENGINEER JANUARY 2026 Read the latest at:
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