Data Centres And Sustainability – Key US, EU And UK Investment Considerations

1. Surging demand for power-intensive digital infrastructure and artificial intelligence is driving private fund strategies and capital deployment into data centres across the US and the EU. The sector is in growth mode, but when assessing investment opportunities and hold periods, and negotiating contracts and pricing, sustainability-related regulatory, energy and environmental considerations are complex and material. Any assessment should focus specifically on data centre energy consumption, and the consequential increase in emissions of greenhouse gases (GHGs) and other pollutants against applicable legal frameworks and commitments regarding limiting such emissions and carbon footprint. Other important aspects are sustainability and environment-related present and future legal considerations for the infrastructure housing data centres and associated physical climate risks.