How California’s New Emissions Disclosure Law Will Affect Data Centers

The new law, SB 253, aims to bring more transparency and accountability to the public about how big businesses contribute to climate change. It also hopes to encourage companies to reduce their emissions and align with the state’s ambitious climate goals. By 2030, California plans to lower its greenhouse gas emissions by 40% below what they were in 1990.

The impact of data centers on carbon emissions

Data centers are among the largest consumers of electricity in the world, accounting for about 1% of global carbon emissions. According to a report by the Uptime Institute, data centers in North America emitted about 59 million metric tons of CO2 in 2020, equivalent to the annual emissions of 13 million cars. Data centers also have indirect emissions from their cooling systems, backup generators, and network equipment.

The new law will require data center operators to measure and report their emissions using standardized methods and tools. They will have to disclose their emissions annually to the California Air Resources Board, which will verify and publish the data. The law will also create a public database that will allow consumers, investors, and regulators to compare the emissions of different companies and sectors.

Challenges and opportunities for data center operators

The law will pose some challenges and opportunities for data center operators. On one hand, they will have to invest in new systems and processes to collect and report their emissions data accurately and reliably. They will also have to comply with potential federal regulations that may differ from the state’s rules. On the other hand, they will have a chance to showcase their environmental performance and leadership, and to identify areas for improvement and innovation. They will also benefit from lower energy costs, improved efficiency, and enhanced reputation.

The new law will take effect gradually over the next few years. By 2026, companies will have to report their direct emissions and those from their electricity use. By 2027, they will have to report their other indirect emissions. The law will apply to both public and private companies that operate in California.

California’s new emissions disclosure law is definitely a bold step toward addressing the climate crisis and holding businesses accountable for their environmental impacts. Data center operators, will have a significant role to play in this effort. By disclosing their emissions, they will not only comply with the law but also demonstrate their commitment to sustainability and social responsibility.

How modern DCIM software can help data center operators be compliant

Data center operators will need to adopt modern tools and practices to comply with SB 253 and reduce their environmental impacts.

Modern Data Center Infrastructure Management (DCIM) software is a valuable tool for data center operators. It enables them to effectively monitor and manage their physical and digital infrastructure, including servers, racks, power, cooling, network, and applications. This software plays a crucial role in helping data center operators comply with California’s new emissions disclosure law in multiple ways. Here’s how:

1. Data center operators can measure their direct emissions by tracking the energy consumption and carbon footprint of data center equipment. Integration with third-party tools can calculate emissions factors of different energy sources. Accurate reports on direct emissions and electricity use can be provided.
2. Data center operators can also measure their indirect emissions from supply chains, transportation, and business activities. Tracking and managing data center assets, vendors, and suppliers is crucial. Estimating emissions associated with these activities is possible using standardized methods and tools.
3. To reduce emissions, optimizing data center performance and efficiency is key. Real-time insights and alerts on data center infrastructure health and status can be provided.
4. Recommendations and automation features can improve capacity planning, load balancing, power management, cooling management, and fault detection. This can lead to lower energy costs, improved uptime, and avoidance of unplanned outages.

Summary

While the new California emissions disclosure law poses challenges for data center operators, it also presents significant opportunities. Modern DCIM software is set to play a pivotal role in facilitating compliance with the new regulations, while also helping operators to achieve greater efficiency and environmental performance. This law may be the first step in a broader trend toward greater transparency and accountability in the data center industry. By proactively embracing these changes, data center operators can not only meet legal requirements but also pave the way for a more sustainable and responsible future for their industry.

See first-hand how modern DCIM software can help you comply with California’s new emissions disclosure law. Schedule a free one-on-one demo of Hyperview today.