UK faces USD $5.4bn cost to make data storage greener
Seagate has published research showing that UK companies see financial and physical space constraints as major barriers to adopting sustainable data storage amid growing demand driven by artificial intelligence (AI).
The company's global report, Decarbonizing Data, is based on a survey of data centre professionals and highlights the increasing sustainability challenges businesses face as they scale up to meet intensifying digital needs.
Within the UK, the study estimates that USD $5.4 billion will be required for investment in more sustainable data storage operations, underlining the prominence of cost as a principal barrier. According to the findings, 66.7% of UK organisations are motivated by financial benefits to implement greener practices, with tax reliefs following at 50%.
Despite heightened awareness of environmental impact—with 96.7% expressing concern—the majority of UK respondents do not factor environmental considerations heavily into purchasing decisions. Only 6.7% cited 'low environmental impact' as a primary consideration when selecting data storage solutions, indicating a significant gap between environmental awareness and purchasing behaviour.
Space constraints also emerged as a critical concern. Half of UK participants identified a lack of physical space as a substantial obstacle to deploying more sustainable data storage solutions. This signals a pressing need for approaches and technologies that make more efficient use of physical space within data centres.
The report also highlighted a disconnect regarding the importance of equipment lifecycle in sustainability strategies. While 93.4% of UK respondents acknowledged the sustainability benefits of extending the lifespan of data storage equipment, only 20% considered durability and product lifecycle as top priorities during procurement.
AI-related demand is a key factor driving data storage requirements. The survey found that 96.7% of UK companies reported a surge in demand for storage services, with 96.6% agreeing that AI is having a significant impact on this trend. These findings follow recent government initiatives to position the UK as a prominent actor in the global AI sector, supported by a strategic expansion of domestic data centre infrastructure.
On a global scale, the report draws attention to wider sector trends. Seagate cited Goldman Sachs Research, which forecasts that worldwide power demand from data centres could rise by up to 165% by 2030 compared to 2023. Energy consumption is now a leading concern, with 53.5% of business leaders naming it as a primary issue.
The survey results revealed that 94.5% of international respondents are observing growing data storage needs, with 97% expecting further escalation as AI continues to evolve. Nearly 95% reported concerns about environmental impact, though just 3.3% prioritised it when making purchases.
Jason Feist, Senior Vice President of Cloud Marketing at Seagate, said, "Data centres are under intense scrutiny – not only because they support modern AI workloads, but because they are becoming one of the most energy-intensive sectors of the digital economy. This calls for a fundamental shift in how we think about data infrastructure – not as a trade-off between cost and sustainability, but as an opportunity to optimise for both."
When it comes to advancing data capabilities, organisations face choices between improving efficiency within existing infrastructure, expanding their data centre footprint, or migrating workloads to the cloud. Each alternative carries trade-offs between cost, carbon emissions, and operational control, suggesting that total cost of ownership and sustainability objectives can be aligned.
The Decarbonizing Data report proposes three key pillars for establishing a more sustainable data storage sector: technological innovation, extending equipment lifecycles and circularity, and sharing accountability across the industry ecosystem. These include adopting advanced energy-efficient technologies, refurbishing and reusing storage equipment, and ensuring transparent reporting and industry collaboration for emissions reduction across all parts of the value chain.
Feist commented, "Sustainability cannot be solved in isolation. A holistic approach spanning infrastructure, life cycle management, and industry-wide accountability could ensure that the growth of AI and data centre operations does not come at the expense of the environment."
The study surveyed 330 professionals across 11 key markets, including the UK, and was conducted by the independent firm Dynata, with fieldwork managed by Current Global. Respondents included experts in the areas of data storage and infrastructure from regions such as Australia, China, France, Germany, India, Japan, North America, Singapore, South Korea, and Taiwan.
